HCM City (VNS/VNA) – Ho Chi Minh City’s Index of Industrial Production (IIP) rose by 8.2% in the first five months of 2025 compared to the same period last year, marking the highest five-month growth rate in the past seven years, according to the municipal Department of Industry and Trade.
In May alone, the IIP increased by 5.1% over the previous month and 9.4% year-on-year.
Bui Ta Hoang Vu, director of the department, said that in the early months of 2025, rising domestic consumption supported growth in the food production and consumer goods sectors. Meanwhile, the US’s temporary 90-day suspension of reciprocal tariffs helped boost export orders in key sectors such as textiles and garments, footwear, electronics, and processing and manufacturing, contributing to the city’s industrial growth.
Notably, the processing and manufacturing sector grew by 8.4% during the period, continuing to serve as the main driver of industrial expansion. The water supply and waste treatment sector increased by 2%, while the electricity production and distribution sector remained stable with a 0.7% rise, ensuring no power shortages occurred.
Many industrial enterprises have also adopted rooftop solar power systems to reduce operational costs, leverage renewable energy, and meet green standards required by international partners.
The city’s four key industrial sectors rose by 8.2%, matching the overall industrial production growth rate. Within this group, electronics manufacturing led with a 20.5% increase, followed by pharmaceuticals and chemicals (12.6%), mechanical engineering (5%), and food and food processing (1.1%).
According to the city Statistics Office, 23 out of 29 level-two industrial sectors recorded year-on-year increases in their industrial production index during the first five months of 2025.
Several sectors posted particularly strong growth, including printing and reproduction of recorded media (up 58.1%), furniture manufacturing (up 38.2%), production of electrical equipment (up 36%), and the manufacturing of rubber and plastic products (up 24.2%).
In terms of employment, the labour index at industrial enterprises in May 2025 rose by just 0.6% from the previous month and by 2.6% year-on-year. Cumulatively, the index increased by 2.2% over the five-month period.
The Statistics Office noted a structural shift in the city’s workforce from low-skilled jobs to positions requiring higher-level skills. This trend is particularly evident in foreign direct investment enterprises, where an increase in the adoption of technology and automation has resulted in relatively modest labour growth despite increased production./.
VNA
