Processing and manufacturing industry: A 'launchpad' for double-digit growth.

"To achieve double-digit growth, we must rely on a strong manufacturing base capable of generating significant added value and driving the development of other sectors."

This is the message, emphasized Dr. Tran Van Khai, Vice Chairman of the National Assembly's Committee on Science , Technology and Environment, in an interview with a reporter from the Industry and Trade Newspaper.

Vietnam's industrial strength is rising.

- The processing and manufacturing industry is becoming a driving force for economic growth with a high growth rate. In 2025, the processing and manufacturing industry's output index is estimated to increase by 10.5%, the highest increase since 2019. What are your thoughts on this growth?

Dr. Tran Van Khai: 2025 will witness a spectacular breakthrough in Vietnam's processing and manufacturing industry. A 10.5% increase in added value for the sector, the highest in five years, will truly be the "locomotive" driving the macroeconomic economy forward.

This achievement reflects the strong resilience of domestic production after a difficult period, affirming the outstanding efforts of the Government and businesses. Under close guidance, policies to remove obstacles and support the transformation of production models have been effective, helping industrial production to flourish despite facing disruptions in global supply chains and natural disasters.

Dr. Tran Van Khai, Vice Chairman of the National Assembly's Committee on Science, Technology and Environment.

More importantly, the quality of growth has significantly improved: the domestic business sector has increased its contribution and participated more deeply in global supply chains, now accounting for nearly 50% of industrial production value (compared to ~35% in 2020). This shows that Vietnam's industrial strength is rising, gradually reducing dependence on FDI, creating a solid foundation for sustainable growth.

The impressive growth in the processing and manufacturing industry also contributed to a GDP growth rate exceeding 8% in 2025, placing it among the highest in Asia. This is vivid evidence of Vietnam's economic resilience and adaptability to global fluctuations, reinforcing confidence for us to boldly enter a new phase with the aspiration of double-digit GDP growth.

In summary, the 10.5% growth in the manufacturing sector is not only an impressive figure but also a testament to the correctness of the policy of prioritizing manufacturing as the focus of development. In line with the spirit of the Party's Resolution 29-NQ/TW, the manufacturing industry has been and continues to affirm its pivotal role as the main driving force behind Vietnam's economic growth. This is a crucial prerequisite for Vietnam to confidently move towards the goal of industrialization and modernization.

- According to Resolution 252/2025/QH15 on the National Master Plan for the period 2021-2030, with a vision to 2050, the target is for the processing and manufacturing industry to account for approximately 28% of GDP by 2030. What is the significance of this target in the context of Vietnam striving for double-digit growth, sir?

Dr. Tran Van Khai: The National Assembly's approval of the revised National Master Plan, setting a target of approximately 28% of GDP for the processing and manufacturing industry by 2030, has profound strategic significance.

In the context of Vietnam striving for an average GDP growth rate of over 8% this decade, especially at least 10% per year during the 2026-2030 period, the 28% target reflects the determination to make the manufacturing industry a pillar of the economy. In other words, to achieve double-digit growth, we must rely on a strong manufacturing sector capable of generating significant added value and driving the development of other industries.

First of all, an approximate 28% share of GDP by 2030 means that the manufacturing sector will play a backbone role in the economic structure, moving closer to newly industrialized countries. By 2025, the share of the manufacturing sector (a key criterion for assessing industrialized countries) is estimated to reach 24.7% of GDP (compared to 24.1% in 2024).

Domestic businesses have increased their contribution to the growth of the processing and manufacturing industry.

The 28% target requires a structural leap, reflecting the expectation that Vietnam will essentially become a modern industrialized, upper-middle-income country by 2030. This target is consistent with the direction set at the 13th National Congress of the Communist Party of Vietnam, when the Party determined that it must accelerate industrialization and modernization based on science and technology and innovation to avoid the risk of falling into the middle-income trap.

Furthermore, this goal also creates positive pressure to focus resources on key manufacturing industries, prioritizing the development of high-tech production and increasing productivity. A 28% GDP share also implies that the industrial and construction sectors will account for over 40% of GDP, and the service sector over 50%, a more balanced and sustainable structure as the economy becomes less dependent on agriculture.

Therefore, this is not just a mechanical figure, but reflects the determination to shift the economic structure towards modernization, using processing and manufacturing industries as a breakthrough driving force to realize the aspiration for national development.

Many sectors have a clear competitive advantage.

- In your opinion, what are the processing and manufacturing sectors in which Vietnam has the clearest advantages and should be prioritized for development to create a breakthrough in the coming period?

Dr. Tran Van Khai: In the Vietnamese industrial landscape, many processing and manufacturing sectors are emerging with clear competitive advantages that we need to prioritize and promote to create breakthroughs.

Firstly, electronics and high technology: The electronics industry has risen to become Vietnam's largest export sector with a turnover of approximately $100 billion. From having almost nothing in 2010, Vietnam has now become an important link in the global technology value chain.

The advantages of a young workforce, competitive costs, and the presence of large corporations (Samsung, Intel, etc.) create momentum for the strong development of electronics, aiming towards the production of semiconductor microchips and high-tech products under the "Make in Vietnam" initiative. This will continue to be the top priority, due to its high knowledge content and significant ripple effect.

Secondly, automotive manufacturing and mechanical engineering: The Vietnamese automotive industry is on a strong upward trajectory. By 2025, car production is projected to increase by 39.1%, a rare "breakthrough" growth rate. The rise of Vietnamese businesses like VinFast and joint-venture assembly plants (Thaco, Hyundai Thanh Cong, etc.) shows that we have an advantage in shaping both the domestic market and export potential.

Prioritizing the development of the automotive and electric vehicle industries, as well as the mechanical engineering sector, will create a ripple effect across a range of supporting industries (steel, plastics, technical rubber, electrical and electronics), thereby forming a comprehensive industrial ecosystem. With a population of nearly 100 million, the domestic automotive market has enormous potential, giving Vietnam the confidence to develop this sector into a key economic driver in the near future.

Thirdly, textiles, footwear, and wood processing: These are traditional light industries where Vietnam has advantages in labor and skilled workers, and has ranked among the world's top exporters. Textiles and footwear currently account for a large proportion of manufactured export turnover, and many businesses have proactively restructured production, diversified markets and products to maintain double-digit growth. Our clearest advantage is our skilled workforce and the wide-open international market thanks to new-generation FTAs.

Electronics and textiles are among the manufacturing sectors with a clear competitive advantage.

Therefore, it is necessary to prioritize the modernization of the textile and footwear industry (applying automation, shifting to high-value products, and sustainable fashion) to both maintain export market share and elevate Vietnamese brands. Similarly, wood processing and furniture manufacturing are also areas where we have strengths in raw materials and technology, and can achieve breakthroughs if we focus on design and brand building.

Fourth, agricultural and food processing: Vietnam is an agricultural powerhouse in rice, coffee, seafood, tropical fruits, etc., but for a long time, it has mainly exported raw products with low added value. Recently, the trend of deep processing of agricultural products has shown many positive signs: key products such as rice, coffee, vegetables, fruits, and seafood have not only increased significantly in export value but have also shifted positively in quality and added value.

This shows that our advantage lies in abundant raw materials and significant potential for developing the food processing industry. Prioritizing this sector will help increase farmers' incomes, stabilize agricultural output, and build Vietnamese food brands in the international market. Industries such as seafood processing, dairy, spices, and beverages can absolutely reach new heights if they receive investment in modern technology and quality management according to international standards.

Fifth, new materials and the chemical industry: The materials industry plays a fundamental role in all areas of production, from metallurgy and chemicals to building materials, composites, and nanotechnology.

Vietnam possesses several unique advantages, most notably its rare earth resources, which rank among the world's top. Our rare earth reserves are estimated at approximately 22 million tons, the second largest globally after China. Rare earths, along with other strategic minerals, are the "weapons" that enable Vietnam to develop new materials industries (magnets, batteries, semiconductors, etc.) and participate more deeply in the high-tech supply chain.

Furthermore, with strong domestic demand, we have developed several basic materials sectors such as construction steel and cement, meeting 100% of domestic needs. To create a breakthrough, priority should be given to new materials projects with high technological content and environmental friendliness – for example, the production of semiconductor chips, nanomaterials, and special alloys – thereby supporting the domestic electronics and mechanical engineering industries. Strong development of the materials industry will create a solid foundation for Vietnam to soon become a modern industrialized nation.

Thank you, sir!

Dr. Tran Van Khai, Vice Chairman of the National Assembly's Committee on Science, Technology and Environment: Electronics, automobiles, textiles, footwear, food processing, and new materials are areas where Vietnam has outstanding advantages and significant growth potential. Focusing resources on promoting these industries will not only help us achieve breakthroughs in exports and growth, but also shape a new position for Vietnam in the global value chain, realizing the goal of becoming a regional industrial production hub.

Source: https://congthuong.vn/cong-nghiep-che-bien-che-tao-be-phong-cho-tang-truong-hai-con-so-443551.html