Hanoi is strengthening its position as a major industrial hub by turning a strong post-pandemic recovery in 2025 into fresh momentum for long-term growth, with processing – manufacturing a key engine of the capital’s economic expansion.

Electronic device manufacturing at the Rhythm Precision Vietnam Co., Ltd., in Hanoi's Noi Bai Industrial Park.

Industrial production in Hanoi rebounded robustly in 2025, recording its highest growth rate since the Covid-19 pandemic. The recovery was broad-based but led decisively by the manufacturing and processing sector, which continued to serve as the main driver of the gross regional domestic product (GRDP).

The municipal Department of Industry and Trade reported that the city’s industrial production index rose by 7.2% year on year in 2025, significantly higher than the 5.9% increase recorded in 2024.

Manufacturing – processing remained the backbone of industrial growth. Value added in this sector increased by 7.18%, contributing 0.85 percentage points to Hanoi’s overall GRDP growth.

Several manufacturing – processing industries posted particularly strong gains, signalling a shift toward higher value-added production. Motor vehicle manufacturing surged by 17.3% while the output of non-metallic mineral products rose 13.1%. Electronics and computer production expanded by 12.9%, and leather and related products increased 11.2%.

Despite the overall positive picture, some sectors continued to face difficulties. Output declined in the production of furniture such as beds, wardrobes, tables and chairs, as well as in electrical equipment manufacturing, largely due to volatile demand and heightened market competition.

One of the most notable improvements last syear was the sharp reduction in inventories. By year-end, inventories in the manufacturing – processing sector had fallen by 31.3% compared with the end of 2024.

Significant declines were recorded in motor vehicles, pharmaceuticals, paper and paper products, and garments, indicating stronger market absorption and more efficient production management among enterprises.

The recovery also extended to supporting industries.

Tran Phuong Lam, Secretary General of the Hanoi Supporting Industries Business Association, said 2025 marked an acceleration phase for supporting industries as enterprises improved resilience and adapted more effectively to global economic fluctuations.

At the enterprise level, the Garment 10 Joint Stock Company reported solid results despite ongoing uncertainties in export markets.

Its General Director Than Duc Viet said that thanks to efforts to maintain production and stable employment, together with stronger support from municipal authorities in administrative reform and investment facilitation, the company achieved import-export turnover of 328 million USD in 2025, including over 200 million USD in exports.

Revenue reached 5.136 trillion VND (196.3 million USD), profit stood at 212 billion VND, and average monthly income exceeded 11 million VND per worker.

Looking ahead, Hanoi sees industry as a key driver of growth in the 2026–2030 period, said Director of the municipal Department of Industry and Trade Vo Nguyen Phong.

It will prioritise manufacturing – processing, high-tech industries and key industrial products, targeting 30–40 key products in 2026 and 180–200 by 2030, he said, adding that high-tech, information technology, mechanical, electrical and electronic products are expected to account for more than 70% of key industrial products, thereby increasing value added, competitiveness and Hanoi’s role in global supply chains.

Alongside product development, the city continues to promote supporting industries. By 2026, Hanoi aims to have over 1,000 supporting industry enterprises by the end of 2026 and approximately 1,200 by 2030, gradually forming a production ecosystem that connects domestic and FDI enterprises.

The business community expects that sustained policy support, combined with economic recovery momentum, will help Hanoi’s industrial sector continue to gain strength in 2026 and beyond.

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