Processing & manufacturing pushing up industry

In the first nine months of 2021, processing and manufacturing increased 6.05 per cent in value year-on-year, driving industry forward and leading in FDI attraction.

In a recent report, the Ministry of Industry and Trade said that, in recent years, the export turnover of industrial products has increased rapidly, accounting for more than 90 per cent of Vietnam’s total export turnover, of which the proportion of processed and manufactured industrial products is increasing.

However, the report also pointed out that processing and manufacturing has mainly focused on the low-tech industry and the processing and assembly stages, with low added value. Also, while the contribution to industrial production value by FDI enterprises is rising, the contribution of State enterprises is declining.

Processing and manufacturing remains heavily outsourced and dependent upon foreign countries, is yet to occupy a strong position in global supply chains, and lacks a foundation for independent development.

It is, however, still attractive and continuously leads in FDI attraction. According to data from the General Statistics Office, in the first nine months of this year it posted the highest newly-licensed FDI capital, with $5.47 billion, or 43.8 per cent of the total.