HCMC boosts industrial growth through stronger domestic supply chains

In the first ten months of 2026, Ho Chi Minh City's industrial production surged by 11 percent, marking a robust recovery and expansion. This growth was driven by strengthened domestic supply chains, increased industry participation, and bolstered local capacities across key sectors. The Industrial Production Index (IIP) for the city in this period rose by 11 percent compared to the same timeframe in 2025, with manufacturing and processing leading the charge, growing by 11.4 percent.

Notable sectors included mechanical engineering, which expanded by 14.7 percent, chemicals and pharmaceuticals at 10.9 percent, food and beverage processing at 11.2 percent, and electronics manufacturing at 2.2 percent.

While the overall increase in output is significant, the transformation is more profound, focusing on enhancing the capabilities of local enterprises. This includes improving technology, management skills, and deeper integration into production chains. Particularly in the electronics sector, which, despite a lower growth rate of 2.2 percent, plays a critical role in technological innovation and value creation.

The city's efforts are further highlighted by Plan No. 530/KH-UBND, issued by the Ho Chi Minh City People’s Committee, aimed at fostering industrial development through 2026.

This plan emphasizes the importance of industry clusters, value chains, and supply chains within the city, with a particular focus on two sectors: mechanical engineering and electronics/information technology. The initiative involves linking large enterprises, including foreign-invested firms, with domestic businesses, involving the gathering of technical standards and localization strategies.

Support policies encompass human resource development, access to land and facilities, and fostering science, technology, and innovation. The program's success will be measured by metrics such as the volume of orders, the number of local suppliers secured, the level of localization achieved, and the incremental advancement into higher-value-added production stages.