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Growth momentum from industrial production

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Continuing the growth momentum since the end of 2023, industrial production in the third quarter of 2024 grew more positively than the previous quarter with an estimated added value of 9.59% over the same period in 2023, which is the highest level in the period from 2012 to the present (only after the 9.93% increase in the third quarter of 2017).

In the first 9 months, the added value of the entire industrial sector is estimated to increase by 8.34% over the same period in 2023, contributing 2.71 percentage points to the growth rate of the total added value of the entire economy, effectively promoting its role as a growth driver.

According to experts, the positive results of industrial production partly come from the export market on the rise, manufacturers receiving many new orders for the last months of the year. The processing and manufacturing industry has recovered strongly thanks to increased international demand after the global supply chain improved, helping the industry regain its important role as a driving force for economic growth in the first 9 months of 2024.

Broad-based growth

After storm No.3 (storm Yagi) made landfall, many industries such as mining or electricity production and distribution suffered heavy damage, but the production activities of processing and manufacturing enterprises were not much affected thanks to the strong direction of local authorities in ensuring quick resolution of power outages and early restoration of power supply to enterprises. In addition, businesses have also proactively taken measures to prevent storms, overcome post-storm damage, and reorganise production, work overtime to compensate for damaged finished products caused by storms, overcome production downtime, and ensure delivery progress according to signed contracts.

Many other positive factors have also created momentum for the growth of the processing and manufacturing industry, such as garment and footwear enterprises taking advantage of foreign markets and electrical and electronic enterprises increasing production volume due to many export orders. All of these factors have helped the processing and manufacturing industry continue to have strong growth, clearly demonstrating its role as the main driving force for growth in the third quarter, offsetting the decline in the agriculture, forestry and fishery sectors.

According to the Ministry of Industry and Trade, the consumption index of the entire processing and manufacturing industry in the first 9 months increased by 12.5% compared to the same period in 2023 (the same period in 2023 increased by only 0.6%). Meanwhile, the inventory index of the entire processing and manufacturing industry as of September 30 is estimated to have increased by 5.2% compared to the same period last month and only increased by 8.5% compared to the same period last year (the same period last year increased by 19.4%).

At the same time, the average inventory ratio of the entire processing and manufacturing industry in the first 9 months of 2024 was 76.8% (the average level in the first 9 months of 2023 was 85.3%), demonstrating a positive recovery in production and consumption of products. Industrial production also increased across the board as the industrial production index (IIP) in the first 9 months increased in 60/63 localities. Some localities have IIP increases quite high at double digits thanks to the processing and manufacturing industry or the electricity production and distribution industry (IIP of Lai Chau increased by 43.3%; Tra Vinh increased by 41.9%; Phu Tho increased by 38.7%; Khanh Hoa increased by 36.4%; Bac Giang increased by 27.7%; Son La increased by 27.3%; Thanh Hoa increased by 20.4%; and so on).

Removing difficulties, stabilising and developing production

Entering the fourth quarter of 2024, the General Statistics Office assessed that Vietnam’s economy continues to face many difficulties and challenges, and is affected by risks and instabilities in the world regarding economics, politics, natural disasters, epidemics, etc. Phi Huong Nga, Director of the Department of Industrial and Construction Statistics (General Statistics Office), said that in order for the processing and manufacturing industry to continue to play an important role and be the growth engine of the economy, all levels and sectors need to synchronously implement solutions to support industrial production, remove difficulties, and stabilise and develop production.

Accordingly, due to the fact that crude oil and gas prices in the world remain high, logistics costs are increasing, and input materials are being affected, businesses are in great need of support to remove difficulties. All levels and sectors of the government need to promote the timely and effective disbursement of business support packages, create favourable and quick conditions for businesses to borrow preferential loans; simplify administrative procedures; quickly disburse public investment; create conditions to promote production activities; and solve issues relating to jobs and income of workers.

Functional units need to strengthen the prevention of smuggled goods, fight against transfer pricing, and label fraud; at the same time, promote and promote domestic consumption policies, stimulate domestic consumption according to the “Vietnamese people consume Vietnamese goods” movement.

The Ministry of Industry and Trade said that it will continue to focus on removing difficulties and obstacles and supporting businesses to restore production and business, especially those affected by storm No. 3, while putting large industrial projects with important roles into operation to increase production capacity. The Ministry will actively advise on summarising mechanisms and policies on international economic integration, especially the implementation of policies to attract FDI in the industrial sector.

From there, propose appropriate solutions to encourage and bind FDI enterprises to spread, share, and substantially support domestic enterprises to promote technology transfer, develop management skills, form supply chains of materials, raw materials and industry clusters, and improve the competitiveness of Vietnamese enterprises to gradually participate in the global production and supply chain.

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LNG-fired power projects under Vietnam’s PDP VIII must operate in 2028

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The Vietnamese government has asked relevant agencies to speed up the progress of LNG-fired power projects towards completion and operation in 2028, earlier than the deadline specified in the power development plan VIII (PDP VIII).

In a recent announcement on amending the PDP VIII, the government noted that for projects with problems, the Ministry of Industry and Trade must help to solve them or report to higher authorities for solutions.

Nhon Trach 3 LNG-fired power plant in Dong Nai province, southern Vietnam. Photo courtesy of PV Power.

Nhon Trach 3 LNG-fired power plant in Dong Nai province, southern Vietnam. Photo courtesy of PV Power.

Regarding those already having investors, including LNG Quang Ninh, LNG Thai Binh, LNG Quang Trach II, phase 1 of LNG Hai Lang, LNG Son My I and LNG Son My II, and LNG O Mon II III IV, the trade ministry must speed up the progress to operate them in 2028. 2028 is two years earlier than the deadline in PDP VIII.

For project without investors yet such as LNG Quynh Lap, LNG Nghi Son, and LNG Ca Na, relevant agencies must accelerate the progress to complete them in Q1/2028 at the latest.

The government also requested that under-construction power projects must complete the construction and enter operation in 2025. These include the Nhon Trach 3 and Nhon Trach 4 LNG-fired power, Nam Cum 4 hydropower, expanded Hoa Binh hydropower, Vung Ang II thermal power, and Quang Trach I thermal power plants.

In addition, it ordered amendments to PDP VIII must be approved on March 20 at the latest. Electricity sources as baseload of the system must exceed 50% of the total in the amended PDP VIII, with the increase in LNG-fired power making up for the decrease in coal-fired power, the government added.

Vietnam currently has only one operational LNG-fired power project – the Nhon Trach 3 and Nhon Trach 4 in the southern province of Dong Nai.

In its draft amendment to the power development plan VIII (PDP VIII), the Ministry of Industry and Trade said that Vietnam can import LNG from major exporters such as Australia, the United States, and Qatar. In the long term, the country can consider LNG imports from Russia and other Middle East nations.

According to the draft amendment to PDP VIII, the electricity sector is set to consume 10-11.8 billion cubic meters of imported LNG yearly until 2030, then 9-11 billion cubic meters yearly by 2045.

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Hanoi honours 36 key industrial products

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The Hanoi Department of Industry and Trade (DOIT) held a ceremony on the evening of December 13 to honour the capital city’s key industrial products for 2024.

According to the DOIT, 160 businesses participated in the selection programme for Hanoi’s key industrial products in 2024.

The department then selected 36 products from 25 enterprises to submit to the municipal People’s Committee for recognition. Ten products from ten enterprises with the highest scores were recognised as the Top Ten Key Industrial Products of Hanoi for 2024.

Of the 25 enterprises whose products were recognised as key industrial products in 2024, eight companies achieved revenue exceeding 1 trillion VND, while ten were among Vietnam’s 500 largest enterprises in 2024, as announced by the Vietnam Report.

The 2024 revenue from the 36 products of these 25 enterprises reached nearly 50 trillion VND, with an export turnover of approximately 1 billion USD.

Speaking at the ceremony, the Deputy Director in charge of the DOIT, Nguyen Kieu Oanh, stated that Hanoi has implemented various programmes to support enterprises whose products have been recognised as the capital city’s key industrial products.

Additionally, enterprises participating in the programme have made efforts to apply scientific and technical advances in modern technology in production, increase automation levels, implement digital transformation, and build smart factory models.

Therefore, the products recognised as Hanoi’s key industrial products help affirm product credibility and enhance their brands in both domestic and international markets.

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Pacifico Energy, EDF eye energy investments in Vietnam

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U.S.-based Pacifico Energy (PE) and France’s EDF have expressed strong interest in investing in Vietnam’s offshore wind and nuclear power sectors, respectively, as the country faces rising energy demands to support economic growth.

The proposals were presented during their talks with Vietnamese Prime Minister Pham Minh Chinh in Hanoi on Wednesday.

PE chairman Nate Franklin stated that the company is committed to expanding its investments in Vietnam’s energy sector, including multi-billion-USD offshore wind projects.

Vietnam's Prime Minister Pham Minh Chinh (right) receives U.S.-based PE's chairman Nate Franklin in Hanoi, March 12, 2025. Photo courtesy of the government's news portal.

Vietnam’s Prime Minister Pham Minh Chinh (right) receives U.S.-based PE’s chairman Nate Franklin in Hanoi, March 12, 2025. Photo courtesy of the government’s news portal.

He emphasized that PE aims to introduce advanced solutions to help Vietnam enhance energy security, attract high-tech foreign direct investment (FDI), develop the semiconductor industry, supply power to data centers and AI training hubs, and drive fast and sustainable economic growth.

In response, PM Chinh encouraged PE to increase its investments and partner with Vietnamese businesses in the green transition, clean energy, and renewable energy sectors, particularly offshore wind and solar power.

He also urged the company to invest in Vietnam’s electricity grid and transmission infrastructure to strengthen the country’s energy security.

PE is among the leading U.S. investors in Vietnam’s renewable energy sector. In 2019, the company completed a 40 MW solar power project in the central province of Binh Thuan. It is also developing a 30 MW wind power project in the southern province of Ben Tre, which is expected to become operational in 2025.

During a separate discussion with PM Chinh, French Ambassador to Vietnam Olivier Brochet affirmed that electricity producer EDF intends to continue expanding its cooperation and investment in Vietnam’s energy sector, particularly in renewable energy and nuclear power projects.

Vietnam's Prime Minister Pham Minh Chinh receives French Ambassador to Vietnam Olivier Brochet in Hanoi on March 12, 2025. Photo courtesy of the government's news portal.

Vietnam’s Prime Minister Pham Minh Chinh receives French Ambassador to Vietnam Olivier Brochet in Hanoi on March 12, 2025. Photo courtesy of the government’s news portal.

The Vietnamese leader noted that Vietnam has restarted investment plans for the Ninh Thuan 1 and Ninh Thuan 2 nuclear power plants in the central province of Ninh Thuan. He added that multiple partners have expressed interest in collaborating with Vietnam on nuclear energy development.

Vietnam will prioritize partners that commit to working alongside Vietnamese investors in technology transfer throughout the project development, Chinh stated.

The Prime Minister also called on France, and EDF in particular, to support Vietnam in developing policies and regulatory frameworks for nuclear power development.

He suggested exploring cooperation in human resource training, providing preferential financing for nuclear power projects, and investing in production of electrical equipment and supporting industries for Vietnam’s nuclear energy sector.

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