HCM City (VNS/VNA) - The Index of Industrial Production (IIP) of HCM City increased 8.6% in the first half of 2025, indicating positive growth amid global trade and economic uncertainty.

Manufacturing and processing grew by 8.8%, electricity production and distribution by 1.5% and water supply and waste treatment by 2.3%.

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% 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.

According to HCM City’s Department of Industry and Trade, the labour index in industrial enterprises in June rose by 1.9% year-on-year. For the six-month period, it also rose 1.9%.
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.

Nguyen Thi Kim Ngoc, deputy director of the HCM City Department of Industry and Trade, said that Vietnam’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 Organisation (JETRO) in HCM City, noted that Japan and Vietnam will continue to strengthen their trade and investment ties.

According to JETRO’s annual survey, 56.1% of Japanese firms operating in Vietnam plan to expand within the next one to two years – the highest rate among ASEAN countries. This indicates the country’s growing strategic role in global supply chains.

Nguyen Quan, chairman of the Vietnam Automation Association, said that as global manufacturing shifts due to AI, automation and new technologies, Vietnam is emerging as a strategic destination for international investors.

However, to sustain this momentum iဣn an incrꦡeasingly competitive market, local businesses must upgrade technology, streamline operation and strengthen global ties./.