The ministry said it will continue to effectively implement supportive policies for enterprises approved by the Government to remove difficulties and obstacles in production and business activities, especially in major industries, such as textiles, garments, footwear, automobiles, mechanical engineering and steel.

The ministry will also focus on perfecting institutions, policies, laws, and development strategies for a number of foundation industries, which will motivate the development of other industries over the short and longer term.

In addition, it continues to effectively implement cooperation programmes with localities to restore and promote the growth of the industrial sector in localities and key economic regions.

Production at Samsung Electronics Vietnam Co, Ltd in Bắc Ninh Province. Việt Nam needs to have many synchronous solutions to ensure stable and sustainable growth for the industrial sector. —VNA/VNS Photo

In addition, the ministry supports enterprises in taking opportunities from large public investment projects and the Government's policies to restore the real estate market. It also encourages businesses to promote buying domestically produced goods, especially raw materials and products available on the domestic market, and to seek new markets for key export industrial products.

According to the ministry's report, despite achieving positive growth results in the first six months of 2024, Việt Nam's industrial sector still faces many challenges.

The internal strength of domestic manufacturing industries is still weak, and major industrial bottlenecks in the past years have not been effectively overcome. Industrial production still depends largely on external factors, especially on the FDI sector. The added value of domestic industries is still low, while supporting industries are underdeveloped, leading to the lack of many domestic hi-tech industrial products.

On the other hand, industrial production has not recovered comprehensively. Some key manufacturing industries, such as smartphones, televisions, cars, and crude iron and steel, have still decreased compared to the same period in 2023.

Meanwhile, some key export products, like footwear, wood, phones and components, recovered but have not yet returned to the peak in 2022.

The situation in the world and region will continue to be complicated and volatile in the last six months of 2024.

Geo-political tensions and competition with major countries are expected to increase. While the recovery of major trading partners is still slow, there is still a risk of disruption to the global supply and production chains.

Some key export products to major markets, such as Europe and the US, continue to face pressure from trade defence investigations and technical barriers.

The domestic real estate market is also recovering quite slowly. The domestic market growth is lower than expected. The consumer price index (CPI) is under pressure following wage reform from July 1 and adjusting electricity prices according to the new mechanism.

Therefore, it is necessary to introduce many synchronous solutions for the long term to ensure stable and sustainable growth for the industrial sector, said Anh.

The General Statistics Office (GSO) reported that Việt Nam’s Index of Industrial Production (IIP) expanded 7.54 per cent in the first half of 2024 compared to the same period last year.

The manufacturing and processing sector grew by 8.67 per cent year-on-year. Electricity production and distribution was up by 13.26 per cent and water supply, waste and wastewater management and treatment activities by 7.13 per cent. The mining sector saw a decline of7.22 per cent.