According to www.vietnam.vn, Ho Chi Minh City aims for a 12.2% increase in its Industrial Production Index (IIP) for 2026, requiring a 15–16% year-on-year rise in Q4 to meet the target.
Strong Nine-Month Performance Amid Challenges
In September 2026 alone, the city’s IIP grew 11.3% year-on-year, with the processing and manufacturing sector rising 12.2%. Over the first nine months, growth occurred despite headwinds including higher energy and raw material prices, elevated logistics costs, and tightening technical, environmental, and traceability requirements from export markets.
The Department of Industry and Trade implemented five priority solution groups during this period, including policy refinement, support for key industrial sectors, domestic supply chain integration, interest rate subsidy programs, and assured electricity supply for production. It advised the People’s Committee to issue the Industrial Support Development Program for 2026–2030 and is building industry-specific enterprise clusters, value chains, and supply chains through 2030.
The city is also compiling the Master List of Key and Potential Industrial Products for 2026–2030 and drafting the Industrial Development Strategy to 2030, with a vision to 2050. Its industrial product database currently includes 403 enterprises and 1,074 products.
Growth Across Priority Sectors
Three of the city’s four key industrial sectors posted double-digit growth over nine months: machinery (+14.1%), chemical-pharmaceutical-rubber-plastics (+12.8%), and food processing (+11%). The Department organized 43 trade promotion programs, including the 2026 Food Industry Promotion Week, which featured 175 booths from 102 enterprises.
To strengthen local supply capacity, the 2026 Industrial Support Supplier Search Conference matched over 300 components and products with 110 qualified domestic suppliers. Interest rate subsidies have been extended to three approved projects by the HCMC Finance Investment Corporation (HFIC), while the People’s Committee fully subsidized interest for two projects over 7 years — yielding a public investment leverage ratio of 4.87 private dollars per public dollar.
Electricity supply remained stable, with commercial power sales reaching 45,068 million kWh over nine months — up 7.97% year-on-year. No large-scale power shortages occurred.
Electronics & ICT: Recovery Signals Amid Structural Gaps
The electronics and information and communications technology (ICT) sector — one of the city’s four priority industries — recorded only 1.4% IIP growth in nine months, the lowest among them. This reflects continued heavy reliance on imported components and limited domestic capacity in core R&D, design, and technology mastery.
However, demand indicators are strengthening: consumption rose 12.7%, while inventory declined 31.7%. Demand surged for AI-enabling products — data center equipment, AI PCs, smart electronics, and semiconductors. The Department forecasts full-year IIP growth for this sector at 5.1%.
Medium- and long-term goals include raising local content in electronics to over 30% and in high-tech industry to over 15% by 2030. The city is exploring conversion of existing export processing and industrial zones into high-tech parks and prioritizing land allocation near seaports, airports, and ring roads to cut logistics costs.
Source: vietnam.vn
Compiled from international media by the SCI.AI editorial team.
