Vietnam’s Industrial Output Reaches Highest Level Since 2019

Vietnam’s industrial sector posted remarkable growth in 2025, with industrial output rising by 9.2% year-on-year, outpacing the 8.2% gain recorded in 2024 and marking the fastest pace of expansion since 2019. Manufacturing and processing led the charge, rising 10.5% and contributing the bulk of overall growth, while power generation, water supply, and other sub-sectors also showed solid increases.

Manufacturing and processing remained the principal growth driver, expanding by 10.5%, while other sub-sectors including power generation and water supply also contributed to overall progress. Growth was observed in all 34 provinces and cities, signaling broad-based industrial improvement across the country. December 2025 alone recorded a 10.1% rise in industrial output, buoyed by an 11.9% jump in manufacturing activity. These gains point to strong momentum heading into 2026.

Why this means for FDI

Vietnam’s robust industrial performance creates a virtuous cycle of economic activity, drawing the attention of foreign direct investment (FDI) at multiple levels:

1. Enhanced Global Supply Chain Integration

As industrial output grows, Vietnam’s role in global manufacturing networks strengthens. Higher production capability supports expanded export volumes and deepens integration with upstream suppliers and downstream logistics services. This improved supply chain efficiency is a decisive advantage for FDI investors seeking stable, scalable production bases.

2. Increased Export Competitiveness

Manufacturing growth often correlates with rising export volumes. As global demand shifts and supply chains diversify, Vietnam’s expanding industrial capacity positions it as an attractive alternative to more mature manufacturing hubs. This trend boosts confidence among multinational enterprises looking to establish or expand operations in Southeast Asia.

3. Stable Economic Environment

Broad-based growth across regions and sectors contributes to overall economic stability. Higher industrial activity typically drives employment, supports domestic consumption, and reinforces investor confidence. For FDI investors, this stability translates into reduced risk and a favorable environment for long-term capital deployment.

Collectively, these dynamics enhance Vietnam’s appeal as an FDI destination, particularly for industries such as electronics, automotive components, machinery, and processed goods — sectors that benefit from strong production ecosystems and integrated logistics frameworks.

Capturing Strategic Opportunities

Against the backdrop of this industrial surge, Core5 Quang Ninh and the upcoming Core5 Quang Ninh 2 are strategically positioned to seize the opportunities created by Vietnam’s industrial expansion.

Strategic Location: Located near major transport corridors and logistics networks in Northern Vietnam, Core5 industrial platforms offer excellent access to both domestic markets and export gateways. Proximity to key ports and infrastructure connects tenants seamlessly with regional and global value chains. This accessibility is increasingly important as demand for efficient logistics and supply chain connectivity rises.

Ready-Built Industrial and Logistics Infrastructure: Core5 developments stand out by offering ready-built facilities designed to meet the immediate needs of investors. These facilities significantly reduce time-to-operation and lower initial setup costs, enabling businesses to focus on scaling production and optimizing operations. This speed-to-market advantage is critical for FDI investors operating in fast-moving sectors.

Integration with Regional Supply Chains: As Vietnam’s industrial clusters expand, Core5 sites are well-placed to integrate with existing supplier networks, distribution hubs, and value-added services. This connectivity supports operational efficiency and enhances competitiveness, making Core5 Quang Ninh and Core5 Quang Ninh 2 attractive investment locations for global manufacturers and logistics providers.

Complementary Trends and Policy Support

Vietnam’s industrial trajectory is supported by broader economic policies aimed at fostering growth, innovation, and foreign investment. Continued enhancements in physical infrastructure, digital connectivity, and trade facilitation are key elements strengthening the country’s growth model.

For example, efforts to improve industrial supply chain linkages, streamline customs procedures, and upgrade logistics infrastructure all contribute to creating a more business-friendly environment. As detailed in related analyses on Vietnam’s industrial landscape, these structural improvements further enhance the country’s competitive edge in the region.

Outlook

Vietnam’s industrial surge in 2025 underscores the country’s emergence as a resilient manufacturing hub with strong potential for sustained investor interest. For FDI investors looking to anchor operations in a stable, growth-oriented market, platforms like Core5 Quang Ninh and Core5 Hai Phong offer strategically located, infrastructure-enabled environments that support long-term investment success.

For investors seeking to capture opportunities, Core5 Vietnam provides more than facilities , we are your strategic partner in long-term success.

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