*The current status of the industrial sector greatly affects the economy of Vietnam.
2023 was evaluated as a difficult economic year when Vietnam was heavily affected by political and economic fluctuations in the world. However, with the wave of investment shifting from China to Vietnam, the industrial real estate sector still maintained its position, shining brightly in the gloomy picture of Vietnam’s economy. According to the press release on the socio-economic situation in the first quarter of 2024 by the General Statistics Office, the industrial production sector showed signs of recovery and stable growth with an estimated added value increase of 6.18% for the entire industry. This is a noteworthy value and potential for the development of the industrial sector in Vietnam.
1. Overview of the development situation of the industrial sector in Vietnam in 2024
1.1. Development of the industrial sector in 2024
The industrial sector continues to show positive signals. Enterprises are beginning to apply advanced technology to production, aiming towards using green technology and environmental protection. Additionally, foreign direct investment (FDI) capital is also experiencing strong growth, attracting many international investors.
1.2. Challenges for the industrial sector in Vietnam in 2024
- Technological changes: require enterprises to constantly update and invest in new technologies.
- Difficulties in capital and human resources: affecting the ability to expand production activities and compete in the market.
- Risks of corporate bonds: require companies to manage finances tightly and implement measures to minimize risks in the future.
1.3. Opportunities for the development of the industrial sector in 2024
- Focus on “Attracting external resources, promoting internal resources”: Creating favorable conditions to attract foreign direct investment (FDI) will help the industrial sector develop strongly.
- Modern automated operating equipment: helps enterprises optimize production capacity, efficiently manage production lines, enhance plant operations, and minimize production failures.
2. 03 Bright spots of the industrial sector and the potential for its development in 2024
The industrial sector in 2024 is considered the opening period of the technology industry, as businesses have imported and put high-tech machinery into production operations.
- Diversification of the industrial sector from manufacturing, and processing to high technology is helping to enhance Vietnam’s competitive position in the international market.
- Attracting a lot of foreign investment into the industrial sector, especially in high technology and industrial production fields.
- Building and investing in improving production technology, and training high-quality labor to meet the needs of the modern industrial sector.
3. 03 Strategies to promote development for the industrial sector in Vietnam by 2025, with a vision to 2035
According to Decision No. 879/QD-TTg approving the Industrial Development Strategy of Vietnam to 2025, with a vision to 2035 issued by the Government. Strategies to promote industrial development include:
3.1. Strategy to identify priority industrial sectors for development and spatial planning direction according to territories.
- Prioritize the development of 3 groups of industrial sectors: Processing and Manufacturing Industry; Electronics and Telecommunications Industry; New Energy and Renewable Energy Industry.
- Spatial planning according to territorial regions such as regions with 4 key economic zones and 5 prioritized coastal economic zones for development.
3.2. Strategy to adjust the industrial growth model by 2025
- Adjust the industrial growth model based on quantity and productivity, quality, and promote the development of industries and industrial products with high added value, and large export value.
- Spatial distribution, ensuring compatibility among regions nationwide, addressing the issue of high industrial density in certain areas.
3.3. Strategy to promote industrial growth by 2035
Focus on investing in industrial production sectors with advanced technology, industrial products with reputable brands, high-quality and high-value.
4. Policies to promote the development of the industrial sector in the period 2025 – 2035
With the direction of building policies to develop the industrial sector of Vietnam by 2025, with a vision to 2035. The government issues policies such as:
- Spatial distribution and restructuring of the industrial sector.
- Developing priority industrial sectors.
- Establishing an investment environment and facilitating business for industrial development.
- Developing industrial enterprises.
- Developing industrial human resources.
- Efficient exploitation and use of resources, and minerals; focusing on environmental protection and adaptation to climate change in the industrial development process.
These are the policies that Vietnam needs to implement to ensure the industrial sector maintains stability and sustainable development.
In 2024, Vietnam’s industrial sector has shown remarkable development, with increased investment in advanced technology, improved product quality, and enhanced exports. Moreover, enterprises need to focus on encouraging foreign investment, developing supporting industries, strengthening resource and environmental management, as well as promoting cooperation between the industrial and agricultural sectors in the coming period.
*Reference:
- Reference materials – Source: Ministry of Finance
- Reference materials – Source: Vietnam Economic Research Institute
- Reference materials – Source: Government Electronic Information Portal
