Impressive Growth of Key Industries in Vietnam: A Sustainable Development Perspective

Overview of Industrial Growth and SDG Alignment

Since early 2025, Vietnam’s industrial production has demonstrated continuous and impressive growth, reinforcing its role as a “locomotive” driving trade, consumption, and export sectors. This growth significantly contributes to the country’s Sustainable Development Goals (SDGs), particularly those related to economic growth, decent work, industry innovation, and infrastructure.

According to the Ministry of Industry and Trade’s Q2 2025 report, the Industrial Production Index (IIP) increased by 8.8% compared to the same period in 2024. This growth surpasses forecasts and marks a strong recovery from the challenges faced in 2023, which included declining orders, high input costs, and global geopolitical instability.

Key Industrial Sectors Driving Sustainable Economic Growth

The processing and manufacturing industry remains pivotal, growing at 10.8%. This sector contributes significantly to GDP, creates high added value, attracts a large workforce, and boosts export turnover, aligning with SDG 8 (Decent Work and Economic Growth) and SDG 9 (Industry, Innovation, and Infrastructure).

• Motor vehicle manufacturing increased by 34.3%
• Leather and related products grew by 16.8%
• Rubber and plastic products rose by 16.1%
• Garment manufacturing expanded by 15.7%
• Other means of transport increased by 14.1%
• Food processing grew by 8.8%

Key industrial product outputs also rose significantly:

• Automobiles increased by 70.3%
• Televisions increased by 25.6%
• Leather footwear increased by 11.5%
• Rolled steel increased by 13.8%

Regional Industrial Growth and Balanced Development

Industrial growth has expanded beyond traditional centers such as Ho Chi Minh City, Binh Duong, and Bac Ninh to other provinces, promoting balanced regional development consistent with SDG 10 (Reduced Inequalities) and SDG 11 (Sustainable Cities and Communities).

1. Phu Tho: IIP growth of 46.7%
2. Nam Dinh: 29.6% increase
3. Bac Giang: 28.1% increase
4. Bac Kan: 23.6% increase
5. Ha Nam: 22.5% increase

This diversification results from effective investment attraction policies, administrative reforms, infrastructure development, and improved human resource quality at the local level.

Government Policies and Business Initiatives Supporting Sustainable Industrial Development

The government’s proactive policies have been instrumental in the industrial sector’s recovery and growth, supporting SDG 8 and SDG 17 (Partnerships for the Goals). Key measures include:

• Production support packages
• Trade promotion initiatives
• Loan interest rate reductions
• Administrative procedure reforms
• Public investment promotion

Additionally, efforts to unblock credit flows and improve logistics have reduced costs and enhanced business competitiveness.

Businesses have embraced green and digital transformation strategies, applying automation, artificial intelligence, and smart supply chain management. These efforts support SDG 9 and SDG 12 (Responsible Consumption and Production), reducing dependence on imported materials and leveraging new-generation free trade agreements such as EVFTA and CPTPP.

Positive Spillover Effects on Trade and Domestic Demand

The industrial sector’s recovery has positively influenced other economic sectors, contributing to SDG 8 and SDG 12:

• Import-export turnover in the first five months reached USD 355.79 billion, up 15.7%
• Exports increased by 15.7%, with processed industrial goods comprising nearly 85% of total turnover
• Total retail sales of consumer goods and services rose by 7.9%, indicating stable domestic demand recovery

This dynamic fosters a healthy growth cycle between production, consumption, and export.

Challenges and Strategic Responses for Sustainable Industrial Development

Despite positive trends, challenges remain, including:

• Global economic instabilities
• Reciprocal tax policies from the US
• Technical barriers and environmental and labor requirements from the EU
• Raw material price fluctuations due to geopolitical conflicts

These factors threaten global supply chains and manufacturing industries dependent on imports.

To address these challenges, Vietnam is:

• Maximizing benefits from new-generation FTAs
• Implementing Resolutions No. 57, 59, 66, and 68 focused on industrial development, institutional innovation, science and technology promotion, and private enterprise capacity building
• Collaborating with localities to develop eco-industrial parks
• Encouraging investment in renewable energy and clean technologies

These initiatives align with SDG 7 (Affordable and Clean Energy), SDG 9, and SDG 13 (Climate Action), enhancing competitiveness and sustainability.

Outlook and Contribution to Vietnam’s Sustainable Development Goals

Experts highlight that eco-industrial parks not only help businesses meet international standards but also create long-term added value, strengthening Vietnam’s industrial competitiveness globally.

With the current momentum, achieving the 8% GDP growth target for 2025 is feasible. The robust industrial recovery, combined with export and domestic market growth, will serve as a “launching pad” for Vietnam to overcome challenges and achieve breakthroughs in deep economic integration.

Industry, as a key economic pillar, contributes not only to economic value but also to shaping a sustainable future for Vietnam, directly supporting multiple SDGs including:

• SDG 8: Decent Work and Economic Growth
• SDG 9: Industry, Innovation, and Infrastructure
• SDG 12: Responsible Consumption and Production
• SDG 13: Climate Action
• SDG 17: Partnerships for the Goals

1. Which SDGs are addressed or connected to the issues highlighted in the article?

1. SDG 8: Decent Work and Economic Growth – The article focuses on impressive industrial growth, recovery of manufacturing, export expansion, and employment generation, all contributing to sustained economic growth.
2. SDG 9: Industry, Innovation, and Infrastructure – Emphasis on industrial production growth, application of automation, artificial intelligence, smart supply chain management, and development of eco-industrial parks.
3. SDG 12: Responsible Consumption and Production – The article mentions greening production strategies, renewable energy investments, and clean technology adoption.
4. SDG 11: Sustainable Cities and Communities – Balanced regional industrial development reducing pressure on large cities and promoting socio-economic development in multiple localities.
5. SDG 17: Partnerships for the Goals – Reference to leveraging new-generation free trade agreements (FTAs) such as EVFTA and CPTPP to enhance trade and economic integration.

2. What specific targets under those SDGs can be identified based on the article’s content?

1. SDG 8 Targets:
   • 8.2: Achieve higher levels of economic productivity through diversification, technological upgrading and innovation.
   • 8.3: Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, and innovation.
2. SDG 9 Targets:
   • 9.2: Promote inclusive and sustainable industrialization and, by 2030, significantly raise industry’s share of employment and gross domestic product.
   • 9.4: Upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies.
3. SDG 12 Targets:
   • 12.2: By 2030, achieve the sustainable management and efficient use of natural resources.
   • 12.5: By 2030, substantially reduce waste generation through prevention, reduction, recycling and reuse.
4. SDG 11 Targets:
   • 11.3: Enhance inclusive and sustainable urbanization and capacity for participatory, integrated and sustainable human settlement planning and management.
5. SDG 17 Targets:
   • 17.10: Promote a universal, rules-based, open, non-discriminatory and equitable multilateral trading system under the World Trade Organization.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

1. Industrial Production Index (IIP) Growth Rate: The article reports an 8.8% increase in IIP, which measures industrial output growth and productivity improvements (relevant to SDG 8.2 and 9.2).
2. Growth Rates of Key Industries: Specific growth figures for motor vehicle manufacturing (34.3%), leather products (16.8%), and others indicate sectoral industrialization progress (SDG 9.2).
3. Export Turnover and Import-Export Volume: Export turnover growth of 15.7% and processed industrial goods accounting for 85% of total turnover reflect trade expansion and economic diversification (SDG 8.2, 17.10).
4. Employment and Workforce Attraction: Although not quantified, the article mentions the manufacturing sector attracting a large number of workers (SDG 8.3).
5. Adoption of Green and Digital Technologies: Implied indicators include the level of automation, AI application, smart supply chain management, and investments in renewable energy and clean technology (SDG 9.4, 12.2).
6. Regional Industrial Growth Rates: Growth in industrial production across various provinces (e.g., Phu Tho 46.7%) indicates balanced regional development (SDG 11.3).

4. Table: SDGs, Targets and Indicators

Source: en.nhandan.vn