In 2023, Vietnam's manufacturing sector accounted for 23.88 percent of the country's total GDP, reaching a value of over 2.4 quadrillion Vietnamese dong (VND). In that year, Vietnam's GDP totaled approximately 10.2 quadrillion VND.

Manufacturing sector in Vietnam

The production index of the manufacturing sector has steadily increased in the last years together with the share of employed people. In recent years, this sector has been among the sectors with the highest number of employed people in Vietnam. The country also recorded a growing number of newly established businesses for manufacturing. In 2022, the sector benefitted from investments at just over 801 trillion Vietnamese dong. Overall, the industry sector contributes the largest share to the country’s GDP.

Vietnam’s economic development

Vietnam is a developing country in Southeast Asia. Since its economic reform in 1986, it has become one of the fastest growing economies by more than doubling its GDP from 2010 to 2018. The GDP per capita increased by 2.5 times while poverty rates declined. With high foreign investment inflows and productivity growth, the country belongs to the so-called Tiger cubs.

In 2023, the manufacturing sector made a significant contribution of over 2.4 quadrillion Vietnamese dong to the gross domestic product (GDP) of Vietnam, thereby achieving the highest contribution across all sectors. The agriculture, forestry, and fishery sector accounted for the second-largest GDP contribution, followed by the wholesale and retail trade, vehicles, and motorcycle repairs sector. The expansion of Vietnam's manufacturing sector The manufacturing sector has been a fundamental component of Vietnam's economy for many years, consistently driving its expansion since 2015, evidenced by its steadily increasing gross domestic product (GDP) value. This is further highlighted by the escalating number of newly established businesses within the sector, reaching a peak in 2022 with the highest recorded number of enterprises in seven years. Furthermore, the manufacturing sector has emerged as the main driver of Vietnam's export figures. Key export segments within the manufacturing sector include electronics, computers, and components, alongside mobile phones and spare parts, as well as textile and footwear products. Hai Phong City - A rising force in Vietnam's manufacturing landscape Hai Phong has emerged as a pivotal manufacturing hub in northern Vietnam, alongside Bac Ninh and Bac Giang. The city accounted for five percent of the newly registered foreign direct investment (FDI) in the manufacturing sector during the first nine months of 2023. Furthermore, home to one of Vietnam's largest harbors, Hai Phong has strengthened its trading position, handling the highest volume of Vietnam’s domestic sea cargo at 8.75 million metric tons in 2022. The city is also home to VinFast, a pioneering electric car manufacturer in Vietnam, with significant electric vehicle sales recorded in the first half of 2023.

Vietnam’s real gross domestic product (GDP) has been experiencing positive growth for the past five years since 2019, and is projected to continue to do so through 2030. In 2023, Vietnam’s real GDP increased by around five percent compared to the previous year. Learning from real GDP Real gross domestic product (GDP) is a measure that reflects the value of all goods and services an economy produces within a given year. It is expressed in base-year prices, and is thus an inflation-adjusted way to compare a country’s economic output through the years. The GDP growth rate is a significant indicator of a country’s economic health, as it reacts to the economy’s expansions and contractions. Vietnam’s optimistic future As indicated by the positive growth rate of its real GDP, Vietnam’s economy is expanding due to growth in exports, domestic demand, and the manufacturing sector. As the economy expands, so does the total expenditure of Vietnamese consumers. The average monthly income per capita in Vietnam increased to almost 3.8 percent in 2018, and is spent on fast moving consumer goods from popular brands like Vinamilk and P/S.

In 2023, Vietnam’s service sector contributed the largest percentage to the country’s gross domestic product (GDP), at 42.54 percent. The service sector consists of the production of intangible goods to businesses and final consumers. Approximately 35.79 percent of the Vietnamese population works in the service sector. A young, working population About 69 percent of Vietnam’s 94 million inhabitants are part of the workforce, or between 15 to 64 years. The country’s workforce has a low unemployment rate of around 1.8 percent, and it is considered a strong regional economic leader, with a yearly economic growth rate of between 6 and 7 percent. Changes in Vietnam’s economy Vietnam’s economy has experienced several drastic shifts over the course of the country’s history, most recently during and following the events of the Indochina Wars: when the North and South were divided politically in the 1950’s, each adopted different economic ideologies, with a communist economy in the North and a capitalist economy in the South. After the country was reunified in 1975, the economy was joined into a socialist-oriented market economy, which has enacted several five-year plans and economic renewal campaigns in order to grow its national economy.

Textiles and clothing (% of value added in manufacturing) in Vietnam was reported at 13.99 % in 2022, according to the World Bank collection of development indicators, compiled from officially recognized sources. Vietnam - Textiles and clothing (% of value added in manufacturing) - actual values, historical data, forecasts and projections were sourced from the World Bank on June of 2025.

Vietnam VN: GDP: 2015 Price: USD: Gross Value Added Per Worker: Industry data was reported at 0.008 USD mn in 2023. This records an increase from the previous number of 0.008 USD mn for 2022. Vietnam VN: GDP: 2015 Price: USD: Gross Value Added Per Worker: Industry data is updated yearly, averaging 0.006 USD mn from Dec 1991 (Median) to 2023, with 33 observations. The data reached an all-time high of 0.008 USD mn in 2023 and a record low of 0.004 USD mn in 1991. Vietnam VN: GDP: 2015 Price: USD: Gross Value Added Per Worker: Industry data remains active status in CEIC and is reported by World Bank. The data is categorized under Global Database’s Vietnam – Table VN.World Bank.WDI: Gross Domestic Product: Real. Value added per worker is a measure of labor productivity—value added per unit of input. Value added denotes the net output of a sector after adding up all outputs and subtracting intermediate inputs. Data are in constant 2015 U.S. dollars. Industry corresponds to the International Standard Industrial Classification (ISIC) tabulation categories C-F (revision 3) or tabulation categories B-F (revision 4), and includes mining and quarrying (including oil production), manufacturing, construction, and public utilities (electricity, gas, and water).;Derived using World Bank national accounts data and OECD National Accounts data files, and employment data from International Labour Organization, ILOSTAT database.;Weighted average;

In 2023, India's manufacturing sector's GDP share was around 13 percent. The share remained the same as compared to the last year and declined from 17 percent in 2010. Value added is the net output of the manufacturing sector after adding all outputs and subtracting intermediate inputs. The manufacturing sector employs over 27 million workers. Boosting manufacturing As global economies aim to reduce reliance on China or adopt a China-plus strategy, India has emerged as a potent alternative manufacturing hub. The Make in India initiative was launched to foster and strengthen India’s global manufacturing status by enhancing foreign direct investments, skill development, and updating manufacturing infrastructure. Under the Production Linked Incentive (PLI) Scheme, companies are incentivized to promote domestic production and enhance manufacturing competitiveness. Despite efforts, experts expressed doubts about the government’s ambition to raise the share of manufacturing to GDP to 25 percent by 2025.
Hurdles for manufacturing As per the World Bank, India’s share in global trade has not kept pace with its rapidly growing economy. It is losing ground to countries like Bangladesh and Vietnam in key low-cost and low-skill manufacturing export sectors. Manufacturing productivity in India has remained low. and the availability of capital also remains an obstacle for the manufacturing sector. Inadequate investments in technology, infrastructure, and research and development (R&D) can also impact productivity growth. Other factors include regulatory compliance burdens, complex labor laws, red tape, and inefficient supply chains.

Vietnam VN: GDP: 2015 Price: USD: Gross Value Added at Basic Prices: Industry (including Construction) data was reported at 136.091 USD bn in 2023. This records an increase from the previous number of 131.183 USD bn for 2022. Vietnam VN: GDP: 2015 Price: USD: Gross Value Added at Basic Prices: Industry (including Construction) data is updated yearly, averaging 47.073 USD bn from Dec 1985 (Median) to 2023, with 39 observations. The data reached an all-time high of 136.091 USD bn in 2023 and a record low of 9.158 USD bn in 1985. Vietnam VN: GDP: 2015 Price: USD: Gross Value Added at Basic Prices: Industry (including Construction) data remains active status in CEIC and is reported by World Bank. The data is categorized under Global Database’s Vietnam – Table VN.World Bank.WDI: Gross Domestic Product: Real. Industry (including construction) corresponds to ISIC divisions 05-43 and includes manufacturing (ISIC divisions 10-33). It comprises value added in mining, manufacturing (also reported as a separate subgroup), construction, electricity, water, and gas. Value added is the net output of a sector after adding up all outputs and subtracting intermediate inputs. It is calculated without making deductions for depreciation of fabricated assets or depletion and degradation of natural resources. The origin of value added is determined by the International Standard Industrial Classification (ISIC), revision 4. Data are in constant 2015 prices, expressed in U.S. dollars.;World Bank national accounts data, and OECD National Accounts data files.;Gap-filled total;Note: Data for OECD countries are based on ISIC, revision 4.

Vietnam Power Market size was valued at USD 17.97 Billion in 2023 and is projected to reach USD 26.76 Billion by 2031, growing at a CAGR of 5.1% from 2024 to 2031.

Key Market Drivers Rapid Economic Growth and Industrialization: Vietnam's rapid economic growth, with a GDP gain of 8.02% in 2022, ranking among the quickest in Southeast Asia, combined with a 9.6% increase in its industrial output index, is driving energy consumption. This expansion is fueled by increased industry, foreign investment, and a young workforce that fuels industrialization. These reasons highlight the importance of a stable and consistent energy supply, prompting Vietnam to expand its power infrastructure to maintain its economic momentum and fulfill expanding industrial and consumer electrical demands. Rising Electricity Demand: Vietnam's electrical consumption reached 236.5 billion kWh in 2022, up 6.6% year on year, with demand expected to rise 8-10% annually until 2030, according to the Ministry of Industry and Trade. This increased demand is being driven by fast urbanization, a growing industrial sector, and expanding residential energy consumption. As Vietnam's economy grows and urban habits change, the demand for reliable electricity increases, necessitating large-scale expenditures in power generation and infrastructure. Shift Towards Renewable Energy: Vietnam is actively transitioning to renewable energy, aiming for a 32% share of its power mix by 2030 and 43% by 2045. Solar power capacity epitomizes this expansion, rising to 16.5 GW in 2022 from 86 MW in 2018. This transformation is being driven by Vietnam's commitment to decreasing carbon emissions, combating climate change, and ensuring energy independence in the face of increased demand. Government subsidies and falling solar and wind technology costs are accelerating this transformation, establishing Vietnam as a regional leader in renewable energy development.