Vietnam’s industrial output surges 10.8% in first half, strongest since 2019
Industrial production rose 10.8% year-on-year in the first half of 2026, the strongest first-half increase since 2019, the National Statistics Office under the Ministry of Finance reported on Wednesday.
Source: RSS · July 21, 2026 at 6:22 PM · AI-assisted report
KUALA LUMPUR, 22 JULY 2026 —
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Industrial production rose 10.8% year-on-year in the first half of 2026, the strongest first-half increase since 2019, the National Statistics Office under the Ministry of Finance reported on Wednesday.
Market Impact
The Index of Industrial Production (IIP) was driven by improving export demand, new investment projects and factory production expansion. Manufacturing and processing accounted for 33.07% of total value-added growth during the period, the NSO said.
The electronics sector alone contributed more than 30% of Vietnam’s export turnover in the first half, according to the Vietnam Electronic Industries Association. Do Thi Thuy Huong, a member of the VEIA Executive Board, said many electronics manufacturers have orders secured through the third quarter and, in some cases, into the fourth.
Supply chains for global manufacturers including Samsung, Apple and LG continued to operate near full capacity. VEIA forecasts electronics exports will grow 15–20% this year compared with 2025.
The steel industry also posted broad-based recovery. Crude steel output reached 2.6 million tonnes in May, up 27.2% year-on-year, the highest growth rate among the world’s ten largest steel producers. Total steel production for the first six months is estimated at nearly 15 million tonnes, an increase of more than 21% from a year earlier.
Dinh Quoc Thai, Vice Chairman and General Secretary of the Vietnam Steel Association, said priorities include protecting the domestic market from low-priced imports, accelerating green and digital transformation and expanding access to high-value export markets.
Economists say sustaining high growth while keeping inflation in check will require stronger supply capacity through infrastructure investment, deeper manufacturing and processing industries, and higher labour productivity. Phi Thi Huong Nga, head of the NSO’s industrial and construction statistics division, expects industrial production to remain a key growth pillar in the second half.
She noted that imports of machinery, equipment, components and raw materials rose sharply in the first half, indicating businesses are expanding production and building inventories. The Ministry of Industry and Trade will prioritise industrial production, particularly in manufacturing, supporting industries and high-technology sectors.
Vietnam’s political stability, favourable location and extensive free trade agreements are drawing high-quality investment in technology, electronics, semiconductors, data centres and smart manufacturing. Experts recommend improving workforce quality, developing supporting industries and strengthening links between domestic and foreign-invested companies to lift domestic value-added production.
The Government has set eight priorities to meet its full-year growth target while keeping average inflation around 4.5%, despite risks from the Middle East conflict and natural disasters. Ho Chi Minh City, Vietnam’s leading FDI recipient, recorded nearly 7.5 billion USD in registered foreign investment in the first half, already exceeding 68% of its annual target.
Related: Ministry of Finance