Vietnam Industry Development

Vietnam Industrial Market in Vietnam 2016- 2020 and 2021

The Covid-19 epidemic has greatly affected Vietnam economy. In 2018 and 2019 Vietnam’s GDP recorded a good growth rate (7.08% and 7.02% accordingly). However, in 2021 and 2022, Vietnam’s GDP was a low growth rate 2.91% and 2.58%, which still was a remarkable effort of the whole country.

During the five-year period from 2016 to 2020, according to the Ministry of Trade and Industry, the share of industry in GDP increased from 27.1% to 28.5% (From 2016 to 2019) and reduced to 27.54% in 2020 due to the impact of the Covid-19 epidemic.

  • The index of industrial production (IIP) of the whole industry increased from 7.4% in 2016 to 9.1% in 2019. Some manufacturing industries reached positive growth in IIP in 2021, such as: Food, textiles, apparel, plastics, electronics, metals, motor vehicles, etc. Besides, the group which have growth rate decline includes: Beverage, machinery and equipment, f electrical equipment, of drugs, pharmaceutical s…etc.

  • FDI investment focuses in key industries (oil and gas exploitation and processing; electronics, information technology, steel, cement, textiles, footwear…). The total value of foreign direct investment in 2021 reached 31.15 billion USD, increased 9.2% over the same period last year.

  • Technological structure in the industry has changed a lot in the direction of approaching more advanced and modern technology.
  • Some industries have strong export positions in the world market: textiles (ranked 7th in export), leather and footwear (3rd in production and 2nd in export), electronics (ranked 3rd in production and 2nd in export) and furniture (5th in export).
  • Vietnam has made great progress and good use of signed Free Trade Agreements (FTAs) such as FTA Vietnam – Korea, Vietnam – EAEU, CPTPP, EVFTA…
  • By the end of 2020, the whole country has more than 331 industrial parks and export processing zones. Most of them are located in the North and the South. Some in the Middle of Vietnam. Many multinational companies including Samsung Group, Intel Corporation, LG, Foxconn… have chosen Vietnam to build plants.

Top project industries by number of project in Northern Vietnam

 

Sources: Houselink, GSO, VCCI, MOIT

 

 

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