Industrial Production Strongly Recovers, Expecting a Breakthrough

The recovery starting from the end of 2024 has created opportunities for a breakthrough in industrial production in Phu Tho Province during the first months of 2025. The industrial sector is expected to continue being a key driver, contributing increasingly to the overall economic growth of the province in 2025.

YB Vietnam Co., Ltd. (Bai Ba - Dong Thanh Industrial Cluster, Thanh Ba District) specializes in producing vibration motors for mobile phones, products for export to the South Korean and Japanese markets.

Impressive Growth

Phu Tho’s industrial production activities in Q1/2025 have shown a clear recovery trend, with the Industrial Production Index (IIP) estimated to increase by 47.3% compared to the same period last year. Overall, production has remained stable, with large-scale enterprises and key projects operating effectively, playing a key role in driving growth across the industrial sector. Additionally, the aggressive implementation of synchronized solutions to support production, boost domestic consumption, and enhance exports has enabled industrial production to continue growing rapidly, becoming a bright spot in the overall economic landscape.

Processing and manufacturing industries are the main driving force, determining the scale and growth rate of the industrial sector. The IIP for processing and manufacturing in Q1 showed growth compared to the same period, with many key industries reporting strong growth. Specifically, the production of pharmaceuticals, chemicals, and medicinal materials increased by 72.4%; the production of electronics, computers, and optical products rose by 70.5%; wood processing and the production of wood, bamboo, and rattan products increased by 41.5%; machinery repair, maintenance, and installation grew by 23.8%; chemical production and products increased by 22.7%; leather production and related products rose by 21.3%...

Several key industrial products saw an increase in output compared to the same period, including: laptops, which are expected to reach nearly 6 million units, up by 108.1%; super phosphate fertilizer, expected to reach over 136,000 tons, up by 41%; sports shoes, expected to reach nearly 1.3 million pairs, up by 21.3%; NPK fertilizer, expected to reach 142,000 tons, up by 14%; cement, expected to reach 248,800 tons, up by 8.6%; ready-made clothes, expected to reach 25.4 million items, up by 1%... Other positive factors also contributed significantly to the growth of the industrial sector, such as stable orders for garment, footwear, and leather businesses due to the recovery of the consumer market, and electronics companies increasing production due to large export orders. Furthermore, the expansion of production and increased investment, as well as the involvement of new, larger-scale enterprises, has provided additional momentum for the development of the entire industry.

On the enterprise side, to boost production and product consumption, local businesses have closely followed market trends, implementing various synchronized solutions to promote production, such as expanding their sales markets and diversifying their industries and products.

Particularly, the paper and packaging production industry, which serves the packaging needs of other sectors, has shown promising signs as many industrial sectors recover. Viet Tri Paper JSC (Viet Tri City), specializing in the production of packaging paper, currently has a production output of over 500 tons of paper per day.

Mr. Tran Van Manh – Head of the Administrative Organization Department of the Company, stated: “In 2025, our company has set a revenue target of 1.8 trillion VND. Along with deep technology investment to enhance product quality, the company focuses on expanding its consumption market, maintaining two key distribution channels: selling directly to large, stable packaging manufacturers and selling to distributors with strong distribution capacity to broaden the market. We hope that the positive results in Q1 will lay a solid foundation to boost business operations for the rest of the year.”

The industrial sector of Phu Tho Province has recorded positive results in Q1. However, to maintain growth momentum and contribute significantly to the province’s economic growth target of over 8% in 2025, businesses need to continue seizing opportunities and adapting flexibly to market challenges. Additionally, they will need the support of various levels and sectors.

Industrial Production Strongly Recovers, Expecting a Breakthrough

Transporting finished paper products for shipment at Viet Tri Paper JSC.

From now until the end of the year, alongside the advantages, the global economic and political landscape faces many complex changes. The increasing risk of trade wars is significantly impacting global economic growth. In particular, the U.S. import tax policy has been and continues to change, which could put pressure on global supply chains, affecting costs and investment plans, especially in key export industries such as electronics, textiles, footwear, and wood. In this context, closely monitoring the international market, promptly adjusting production strategies, and actively expanding markets are key factors for businesses to develop and gradually enhance their capacity to participate in global value chains.

Vietnam-France Aluminum JSC (Trung Ha Industrial Park, Tam Nong District), specializing in producing aluminum profiles, ingot aluminum, employs 120 workers, and its revenue in 2024 is expected to exceed 470 billion VND.

Mr. Vu Van Phu - Chairman of the Board of Directors, shares: "In 2025, our company sets a growth target of 15%, focusing on boosting exports to international markets. Aluminum is a versatile product, used in almost all industrial and consumer sectors. However, in the process of expanding markets and increasing exports, the aluminum industry is facing the trend of protecting domestic production in many large markets. This requires us to proactively adapt, be flexible in our business strategies, equip ourselves with knowledge about trade defense, diversify products, and reduce dependence on traditional markets. In particular, the support and assistance from state management agencies in providing timely information, guidance, and policy updates for businesses to confidently enter larger global market ‘playgrounds’ is crucial."

Sustainable development has been emphasized by developed countries, and new standards related to the environment, raw materials, supply chains, labor, and consumer safety are being applied more strictly. This is both a challenge and a motivation for businesses to innovate technology and restructure production activities.

To support businesses, Phu Tho Province continues to focus on developing industrial zones and clusters with integrated infrastructure, prioritizing the attraction of large-scale investment projects, modern technologies, high added value, energy savings, and environmental friendliness. Additionally, the province aims to ease obstacles, create favorable conditions for business operations, implement timely policies on taxes, credit, and promotional programs; and facilitate the rapid growth of the manufacturing and processing industry sector within the industrial structure. Efforts will also focus on speeding up land handover and launching projects earlier to create additional production capacity and new products for the provincial industrial sector.

According to Mr. Nguyen Viet Dung, Director of the Department of Industry and Trade, the department will continue to research, advise, and propose mechanisms and policies to encourage industrial development, especially in high-tech industries, new industries, and clean energy. At the same time, it will collaborate with relevant departments to guide and support businesses in technology innovation research, commercial promotion activities, and exports to new markets. The department will also effectively implement policies that support businesses, aiming to resolve difficulties and obstacles in business operations, and further promote the development of industrial production.

Nguyen Hue