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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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Manufacturing, processing push up industrial growth in five months

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11 minutes ago

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March 17, 2025

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Vietnam’s industrial sector experienced positive growth in the January-May period, with 55 out of 63 provinces and centrally-run cities nationwide reporting annual increases in the Index of Industrial Production (IIP), according to the General Statistics Office (GSO).

The GSO identified manufacturing, processing, and electricity production and distribution as the primary drivers of the growth. Provinces recording high growth included Phu Tho (31.2%), Bac Giang (24.9%), and Binh Phuoc (14.8%). However, some other provinces like Ha Tinh, Quang Ngai and Ca Mau saw respective declines of 9%, 8.25% and 2.5% in their indexes.

Overall, the national IIP in May continued its upward trajectory, rising 3.9% month-on-month and 8.9% year-on-year. The five-month period saw an yearly increase of 6.8%.

A deeper analysis revealed the processing and manufacturing industries as the key contributor to the growth, boasting a 7.3% rise and adding 6.4 percentage points to the overall increase. The electricity production and distribution sector also performed strongly, with 12.7% growth, contributing 1.1 percentage points. Additionally, the water supply, waste, and wastewater management sector went up 6.3%, adding 0.1 percentage point. However, the mining sector experienced a decline of 5.2%, resulting in a reduction of 0.8 percentage point in the overall growth.

Specific product categories within the processing and manufacturing sectors posted impressive growth. Production of rubber and plastic products surged by 27.4%, while electrical equipment saw a 24% increase. Production of chemicals and chemical products grew by 20.1%, followed by beds, cabinets, tables, and chairs (19.6%) and metal products (13.2%).

In light of these findings, the GSO proposed a series of recommendations to further bolster Vietnam’s industrial development. It urged the Ministry of Industry and Trade (MoIT) to prioritise a structural shift toward increasing the proportion of processing and manufacturing industries within the overall industrial sector, while simultaneously reducing reliance on the assembly and processing of imported products; enhance enterprise competitiveness and incentivise the use of domestically produced goods via technical barriers for certain imports.

Additionally, the GSO recommended that the MoIT refine key institutions such as the Key Industrial Law and the Law on Chemicals. Expediting the disbursement of public investment capital and hastening crucial projects in the fields of electricity, oil and gas, manufacturing, processing, and mining are also highlighted as crucial steps.

Head of the GSO’s Industrial and Construction Statistics Department Phi Thi Huong Nga suggested that localities should launch more stimulus and promotion schemes to increase purchasing power while helping industrial firms find partners and expand markets through trade exhibitions.

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Massive investments flow into Cam Lam district as airport town to take shape in Vietnam’s Khanh Hoa province

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1 hour ago

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March 17, 2025

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Hundreds of millions of U.S. dollars are flowing into Cam Lam district, providing a major boost for Khanh Hoa as the province in south-central Vietnam accelerates its plans to develop an international-standard airport town.

A corner of Cam Lam district, Khanh Hoa province, south-central Vietnam. Photo by The Investor/Nguyen Tri.

A corner of Cam Lam district, Khanh Hoa province, south-central Vietnam. Photo by The Investor/Nguyen Tri.

The provincial People’s Committee recently issued decisions to select investors for four large urban complex projects, with a total investment exceeding VND22 trillion ($862.24 million) in Cam Lam district.

The Cam Tan Urban Complex spans over 290 hectares in Cam Tan and Suoi Tan communes, with a projected population of around 4,020 people and a total investment exceeding VND5.73 trillion ($224.6 million).

The Cam Thuong Urban Complex, at the cost of nearing VND6 trillion ($236.9 million), covers nearly 300 hectares in the same two communes and will be home to 4,010 people.

Located in Cam Tan and Cam Hoa communes, the 300-hectare Cam Hoa Urban Complex will have an investment of over VND5.24 trillion ($200 million) and house 4,410 people.

Lastly, the over VND5.1 trillion ($200 million) Suoi Tan Urban Complex, spanning nearly 240 hectares in Suoi Tan commune, will accommodate around 4,020 people.

The provincial People’s Committee also approved a list of projects seeking non-budget investments for the 2025–2030 period, including three projects in Cam Lam.

The most notable is the 10,365-hectare Cam Lam New Urban Area project, with an investment of VND285.3 trillion ($11.18 billion). This major project aims to create a new urban area and world-class entertainment zone, making it one of Khanh Hoa’s flagship initiatives for the 2025–2030 period.

Developing Khanh Hoa’s southern growth pole

Positioned between the coastal towns of Nha Trang and Cam Ranh, Cam Lam benefits from a highly convenient transportation network.

With 13 kilometers of coastlines, the district has attracted significant investment over the past 20 years, leading to the development of numerous resorts that have transformed the area.

In February 2024, Deputy Prime Minister Tran Hong Ha approved a master plan for the new Cam Lam Urban Area until 2045. The planned area covers the entire administrative boundary of Cam Lam district, totaling over 54,719 hectares (excluding the Thuy Trieu Lagoon area).

Under the master plan, Cam Lam is set to become the southern growth hub of Khanh Hoa and the south-central coastal region, contributing to the province’s ambition to become a centrally governed city. Vietnam currently has six centrally managed cities, namely Hanoi, Hai Phong, Danang, Hue, Ho Chi Minh City, and Can Tho.

The district will be developed into a modern, international-standard airport town, focusing on coastal tourism, logistics services, finance, global innovation, education, healthcare, and cutting-edge research. The goal is to create a high-quality living environment with modern infrastructure.

In August 2024, the Khanh Hoa People’s Committee approved a zoning plan (scale 1/2000) that covers the coastal sub-area, the central urban sub-area, and the northern urban sub-area of the new Cam Lam town.

The central urban sub-area aims to develop a new political-administrative center for Cam Lam, as well as an innovation hub that is part of a larger regional center.

The northern urban sub-area will focus on developing a new urban center, featuring a chain of golf courses, amusement parks, and specialized parks near Cu Hin Mountain.

Meanwhile, the coastal urban sub-area will serve as a tourism, service, and coastal urban zone, acting as the maritime gateway to the new town.

Real estate market recovery

Nguyen Anh Tuan, vice president of the Khanh Hoa Real Estate Brokerage Association, stated that the local real estate market has emerged from its most challenging period and showed clear signs of recovery in 2024.

The market’s recovery is driven by significant improvements in infrastructure and well-planned, long-term development schemes, such as the Nha Trang master plan for 2040 and the Cam Lam airport town master plan through 2045, he noted.

These initiatives have drawn considerable interest from investors, highlighting the region’s sustainable property market growth potential.

“The real estate market in Khanh Hoa, particularly in hotspots like Nha Trang and Cam Lam, has experienced a notable rise in prices over the past year. This surge has created pressure for both homebuyers and new investors, potentially driving property prices to unsustainable levels, which could pose risks to liquidity and long-term value stability,” Tuan added.

With a strong foundation for recovery in 2024, Tuan believed that the local real estate market will continue to grow substantially in 2025, supported by the ongoing improvements in infrastructure.

Notably, key projects such as the Khanh Hoa-Buon Ma Thuot Expressway and the expansion of Cam Ranh Airport will play a pivotal role in stimulating the market and attracting further investment.

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Agoda Offers Free Tickets for Japanese Fans to See NCT WISH, THE BOYZ, n.SSign and More at Seoul Spring Festa

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2 hours ago

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March 17, 2025

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Digital travel platform Agoda is giving K-pop fans in Japan a reason to cheer with an exclusive offer to attend the Seoul Spring Festa’s opening concert, WONDER SHOW, which will take place on Wed, Apr. 30 at Seoul World Cup Stadium.

TOKYO, March 14, 2025 /PRNewswire/ — Digital travel platform Agoda is giving K-pop fans in Japan a reason to cheer with an exclusive offer to attend the Seoul Spring Festa’s opening concert, WONDER SHOW, which will take place on Wed, Apr. 30 at Seoul World Cup Stadium.

Fans from Japan, Mainland China, Hong Kong, and Taiwan can snag two free tickets per booking to the highly anticipated event featuring K-pop artists NCT WISH, THE BOYZ, n.SSign, TWS, NMIXX, god, STAYC, ALL(H)OURS, NEXZ, KickFlip, Hearts2Hearts, NouerA, KiiiKiii and more to be announced*. Travelers can secure the free tickets through the ‘Agoda x Wonder Show’ special room package available via participating properties on Agoda. The offer will be available starting March 17 to April 11, 2025, for check-ins between April 21-30, 2025, and includes an additional discount of up to 15% off accommodations.

The Seoul Spring Festa, a city-wide celebration of Korean culture, food, and entertainment, includes a lineup of performances by NCT WISH, known for their electrifying stage presence; THE BOYZ, celebrated for their dynamic choreography; and n.SSign, the rising stars captivating fans across Asia, and many more. Pre-sale tickets for the event have already sold out, making Agoda’s offer a golden opportunity for fans to experience the magic of K-pop live.

Jay Lee, Country Director, South Korea at Agoda, shared, “K-pop transcends borders, uniting fans worldwide, and we’re excited to bring Japanese fans closer to the action. Agoda is making dreams come true with free tickets to see NCT WISH, THE BOYZ, n.SSign, and more, along with unbeatable hotel deals—turning Seoul into the must-visit hotspot for K-pop lovers this spring.”

Travelers can enhance their Seoul experience by booking the Discover Seoul Pass on Agoda. This all-in-one offers access to major attractions, transportation, and connectivity in Seoul, ensuring visitors can explore the city with ease and convenience.

With over 5 million holiday properties, more than 130,000 flight routes, and over 300,000 activities available, Agoda offers everything travelers need to plan their perfect trip. For more information on this exclusive offer and to book your stay, visit Agoda.com or download the Agoda mobile app for the best deals.

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