According to statistics, the Industrial Production Index (IIP) for Ho Chi Minh City in the first 10 months of 2026 is estimated to have increased by 11 percent compared to the same period last year, with the manufacturing and processing sector alone growing by 11.4 percent.
Among the city’s four key industrial sectors, mechanical engineering grew by 14.7 percent, chemicals and pharmaceuticals by 10.9 percent, food and beverage processing by 11.2 percent, and electronics manufacturing by 2.2 percent.
These positive results indicate that industrial production in Ho Chi Minh City has maintained its momentum of recovery and growth, even as businesses continue to face pressure from input costs, market competition, and increasingly stringent requirements from major international markets. However, an increase in output is only part of the story.
Of greater significance is how the capabilities of domestic enterprises ranging from technology and management to their capacity for deeper integration into production chains are being enhanced throughout this growth process.
The electronics sector serves as a prime example. Heavily influenced by the presence of global corporations, this sector is expected to generate added value and drive technological innovation. Although its 10-month IIP growth of 2.2 percent is notably lower than that of other key industries, it nonetheless highlights opportunities to expand production capacity and strengthen the sector's role in fostering development across the domestic business landscape.
Against this backdrop, Plan No. 530/KH-UBND, issued by the Ho Chi Minh City People’s Committee, represents a significant step in supporting industrial enterprises by promoting business linkages through industry clusters, value chains, and supply chains within the city for 2026.
In the immediate term, the city is focusing on two specific sectors: mechanical engineering and electronics/information technology. The city also plans to connect large enterprises including industry leaders and foreign-invested firms with domestic businesses. This involves gathering information on technical standards and localization strategies, while simultaneously identifying groups of potential local suppliers.
Support policies have been designed with a broader scope, covering areas such as human resource development, access to land and production facilities, as well as science, technology, and innovation.
Notably, the program addresses the needs of lead enterprises, the capabilities of domestic suppliers, and the role of policy in bridging the gap between the two—all as part of a single, integrated framework.
The transition from planning to tangible results will be measured by concrete metrics: the volume of actual orders, the number of domestic firms that successfully become suppliers, the level of localization achieved, and the ability to gradually advance into higher value-added stages of production.
Strong outcomes, robust internal capacity, and industrial growth will generate a broader ripple effect, serving as the foundation for the city’s long-term competitiveness.
