Vietnam’s Industrial Production Maintains Growth Momentum in Early 2026

Vietnam’s industrial sector is sustaining growth momentum going into 2026, with many enterprises reporting strong performance and ambitious targets. As global economic conditions remain unpredictable, proactive planning, technological investment, and human capital improvements are key factors helping businesses navigate challenges and maintain production expansion.

Industrial output in Vietnam has consistently shown resilience over the past year, building on strong gains in 2025 and signaling robust fundamentals in manufacturing and processing that are critical to the national economy.

Strong Enterprise Confidence Drives Momentum

Many industrial firms are reporting optimistic growth forecasts for 2026. For example:

• Lap Phuc Co., Ltd., a precision mold maker in Ho Chi Minh City, is targeting 20%–30% growth compared to 2025. The company attributes this confidence to long-term technology investment and workforce skill enhancements, which have made its products competitive in global markets — especially among US importers.
• Cat Van Loi Industrial Electrical Equipment Manufacturing JSC aims for a 23% growth rate by pushing internal capability building, securing additional international certifications, and expanding trade promotion efforts. The company’s products are already deployed in major domestic and international infrastructure projects.

This enterprise-level optimism reflects a broader trend across Vietnam’s industrial base, where manufacturers are aligning production standards with global markets and deepening integration into international supply chains.

Key Factors Supporting Growth

Several key drivers are underpinning Vietnam’s industrial production growth:

1. Technological Investment and Workforce Development

Firms are increasingly investing in advanced production technologies and enhancing workforce capabilities to improve quality, efficiency, and competitiveness. These investments are helping companies enter new markets and meet international standards.

2. Expansion of International Markets

Vietnam’s industrial producers are expanding export relationships and securing orders from overseas buyers, especially in high-precision manufacturing segments — a trend that supports broader export-oriented growth.

3. Strong Backdrop from Previous Industrial Growth

ndustrial production in 2025 recorded some of the strongest performance seen in recent years, with output growth accelerated compared to 2024 and manufacturing remaining the key engine of expansion.

Challenges Remain for Some Segments

While overall momentum is positive, enterprises and industry associations highlight challenges that could affect growth:

• Access to capital remains constrained for some manufacturers, as high investment demand meets elevated lending costs. Even with stimulus loan programmes in cities like Ho Chi Minh City, not all firms are able to benefit equally.
• Rising industrial land costs, particularly in key areas such as Cu Chi Industrial Park, are squeezing competitiveness by increasing operational expenses for manufacturers.
• Domestic firms contend with barriers to participating in large-scale infrastructure projects despite technical capabilities, underscoring the need for supportive policy frameworks that prioritise locally produced goods and services.

Industry Outlook: Balanced Confidence with Strategic Action

Business surveys indicate continued confidence among industrial enterprises heading into the first quarter of 2026, with a notable share expecting further improvement in operating conditions. This optimism highlights the resilience of Vietnam’s industrial sector and its ability to adapt through innovation and market diversification.

Continued efforts to strengthen workforce skills, expand export channels, and enhance capital access will be essential to sustaining industrial growth and competitiveness, particularly as global economic headwinds persist.

Sustaining Growth Amid Uncertainty

Vietnam’s industrial production is maintaining positive growth momentum as it enters 2026, driven by proactive enterprise strategies, technology adoption, and expanding international market participation. Despite challenges related to financing and operational costs, the sector’s strong fundamentals and enterprise confidence suggest that Vietnamese industrial output will continue to be a key contributor to broader economic growth

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