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HCM CITY SEES STRONG RECOVERY IN INDUSTRIAL PRODUCTION
The Index of Industrial Production (IIP) of HCM City increased 8.6 per cent in the first half of 2025, indicating positive growth amid global trade and economic uncertainty.

Workers assemble parts on an automotive production line in HCM City. The city’s industrial sector is showing strong signs of recovery. — Photo moit.gov.vn
HCM CITY — The Index of Industrial Production (IIP) of HCM City increased 8.6 per cent in the first half of 2025, indicating positive growth amid global trade and economic uncertainty.
Manufacturing and processing grew by 8.8 per cent, electricity production and distribution by 1.5 per cent and water supply and waste treatment by 2.3 per cent.
Additionally, the combined IIP of four key industries – including mechanical engineering; electronics and information technology; pharmaceutical chemistry, rubber and plastics; and food processing – rose by 8.7 per cent year-on-year, slightly higher than the overall industrial growth rate.
Twenty three industries – including printing and media reproduction, furniture manufacturing, non-metallic mineral products, motor vehicles, electrical equipment, clothing and electronic and optical products – reported higher output in the first half of the year.
According to HCM City’s Department of Industry and Trade, the labour index in industrial enterprises in June rose by 1.9 per cent year-on-year.
For the six-month period, it also rose 1.9 per cent.
Sectors showing the largest increases included machinery installation and maintenance, chemical production and wastewater treatment.
Looking ahead to the third quarter, most businesses have a positive outlook for production growth.
Nguyễn Thị Kim Ngọc, deputy director of the HCM City Department of Industry and Trade, said that Việt Nam’s industrial sector – particularly in HCM City – is seeing major opportunities to transform.
She also said the department would continue helping industrial firms adopt new technologies and improve competitiveness, with a focus on increasing the localisation rate, taking part in global supply chains and boosting international cooperation.
Earlier this month, the department organised the 2025 Sourcing Fair of Supporting Industry, bringing together FDI companies seeking local suppliers and domestic firms looking to expand cooperation.
Mitsutoshi Okabe, chief representative of the Japan External Trade Organization (JETRO) in HCM City, noted that Japan and Việt Nam will continue to strengthen their trade and investment ties.
According to JETRO’s annual survey, 56.1 per cent of Japanese firms operating in Việt Nam plan to expand within the next one to two years – the highest rate among ASEAN countries. This indicates Việt Nam’s growing strategic role in global supply chains.
Nguyễn Quân, chairman of the Việt Nam Automation Association, said that as global manufacturing shifts due to AI, automation and new technologies, Việt Nam is emerging as a strategic destination for international investors.
However, to sustain this momentum in an increasingly competitive market, local businesses must upgrade technology, streamline operation and strengthen global ties. — VNS
Source: VNS
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