Vietnam Manufacturing 2025: From Defense to Active Growth

Substantive Recovery Laying the Foundation for a New Cycle

With a strong recovery in orders, Vietnamese enterprises are silently but strategically preparing internal strength in technology and human resources to break through in the pivotal 2025–2026 period.

Vietnam Industry: From “Defense” to “Active Recovery” After a volatile period in the global economy, 2025 marks an important shift for Vietnam’s industrial production from a state of “defense” to “active recovery.” Although still facing challenges from input costs, local supply chain disruptions, or international competitive pressure, the overall picture shows that the manufacturing sector has regained stable growth rhythm and market confidence.

Practical evidence from enterprises shows that demand in infrastructure, energy, automation, and industrial production is returning.

Speaking with the Industry and Trade Newspaper, Mr. Nguyen Quang Thang – General Director of Bao Minh Chau Industrial JSC, stated that 2025 recorded a fairly comprehensive recovery in market demand, especially in projects with high technical and technological content.

Not stopping at the improvement of orders, the mindset of enterprises has also changed. Instead of operating moderately, many supporting industry enterprises have returned to a methodical investment strategy, focusing on core competencies and standardizing production to anticipate the new development cycle.

For Bao Minh Chau, 2025 recorded stable growth in output and revenue thanks to focusing on core products such as electrical switchboards, distribution systems, controls, and integrated solutions for factories. The enterprise continues to invest heavily in quality, technology, and standardizing production processes according to international standards.

Notably, the decision to expand and build a new factory in Vinh Phuc is a step that has been prepared for a long time. When the current factory scale no longer meets the increasingly high requirements for output, schedule, and technical standards, the new factory allows the enterprise to invest synchronously from production lines and automation levels to operational governance.

The recovery picture of industrial production is also clearly demonstrated through the activities of high-tech enterprises. Ms. Nguyen Thi Huyen – Deputy General Director of ASG Vietnam Engineering Company said that in 2025, despite difficulties regarding human resources, ASG still achieved good results, especially in stabilizing and developing branches in foreign markets such as Japan and Indonesia.

In core products such as cylinders and screws for the plastic industry, ASG is gradually building a position in the high-tech segment, a “playground” previously belonging to foreign enterprises.

Macro Indicators reflect a Positive Trend At the macro level, indicators also reflect a positive trend. The Vietnam Manufacturing Purchasing Managers’ Index (PMI) announced by S&P Global showed that the PMI in December 2025 reached 53.0 points—maintaining above the 50-point threshold for the eighth consecutive month. Output, new orders, and employment all increased, showing that the health of the manufacturing sector improved significantly in the second half of the year.

Although the growth rate slowed slightly compared to some previous months, the important thing is that the growth momentum is maintained stably, reflecting that market demand is recovering substantively, no longer short-term.

However, the recovery picture is not entirely “rosy.” The lingering effects of natural disasters, raw material scarcity, prolonged delivery times, and rapidly rising input costs remain major obstacles for manufacturing enterprises.

According to S&P Global, input costs in December 2025 increased at the fastest pace in three and a half years, forcing many businesses to adjust selling prices. However, unlike the previous period, enterprises have become more proactive in risk management, increasing raw material reserves, and expanding purchasing activities to meet new orders.

Foundation for a New Growth Cycle The positive signals of 2025 are creating an important foundation for 2026 and the 2026–2030 period. According to the Ministry of Industry and Trade (MOIT), in 2025, industry grew by approximately 9.5%, of which the processing and manufacturing industry increased by over 10.6%—the highest level since the pandemic.

Stepping into 2026, MOIT sets a target for the Index of Industrial Production (IIP) to increase by over 10%, focusing on removing difficulties, expanding markets for key industries, and improving domestic production capacity.

At the strategic level, the orientation of industrialization and modernization is also emphasized in depth. At the Industry and Trade Sector Review Conference held on the afternoon of December 19, Prime Minister Pham Minh Chinh required the industry and trade sector to pioneer in industrialization, modernization, digitization, and greening; diversify markets and supply chains; and simultaneously improve institutional quality and data-driven management efficiency.

According to experts, industry is not just about machinery or output, but the capacity for production organization, technology, human resources, and synchronous institutions. These are precisely the factors that enterprises are silently preparing in the current period.

Therefore, 2025 is also the year laying the foundation for a new growth cycle. Enterprises have returned to long-term investment, the market has gradually improved, and policies are being oriented towards in-depth support.

Challenges remain, but confidence has returned. More importantly, industrial production is gradually regaining its role as the central engine of economic growth. If the pivotal 2025–2026 period is utilized well, this phase can completely become a new breakthrough cycle for Vietnam’s industry, not only in scale but also in quality and position in the regional and global value chains.

Mr. Andrew Harker – Economics Director at S&P Global Market Intelligence, commented that Vietnam’s manufacturing sector closed a volatile year with positive signals as output and new orders continued to rise, and business confidence reached a 21-month high. More favorable weather conditions in December helped businesses increase output and accelerate the progress of backlog projects.

Vietnam’s manufacturing sector is assessed to enter 2026 with a positive position, with businesses optimistic about order prospects and expanding production capacity, with a forecast of industrial output increasing by 6.7% in 2026.