According to the municipal Department of Industry and Trade, in May alone, the index increased by 5.1 per cent month on month and 9.4 per cent year on year.
Bui Ta Hoang Vu, Director of the department, attributed the growth to rising domestic consumption, which boosted production in the food and consumer goods sectors in the early months of the year. He also cited the United States’ temporary 90-day suspension of reciprocal tariffs, which bolstered export orders in key industries such as textiles and garments, footwear, electronics, and processing and manufacturing.
The processing and manufacturing sector, the primary driver of the city’s industrial expansion, grew by 8.4 per cent over the period. The water supply and waste treatment sector expanded by 2 per cent, while electricity production and distribution remained stable with a 0.7 per cent increase, ensuring no power shortages were reported.
Many industrial firms have adopted rooftop solar power systems to cut operational costs, harness renewable energy, and meet green standards set by international partners.
The city’s four key industrial sectors also grew by 8.2 per cent, mirroring the overall IIP growth. Electronics manufacturing led the way with a 20.5 per cent increase, followed by pharmaceuticals and chemicals (12.6 per cent), mechanical engineering (5 per cent), and food and food processing (1.1 per cent).
According to the Ho Chi Minh City Statistics Office, 23 out of 29 level-two industrial sectors recorded year-on-year growth in their production index during the five-month period.
Notable performers included the printing and reproduction of recorded media sector (up 58.1 per cent), furniture manufacturing (up 38.2 per cent), production of electrical equipment (up 36 per cent), and manufacturing of rubber and plastic products (up 24.2 per cent).
On the employment front, the labour index at industrial enterprises rose by just 0.6 per cent in May compared to the previous month and by 2.6 per cent year on year. Overall, the five-month growth rate stood at 2.2 per cent.
The Statistics Office noted a structural shift in the city’s workforce away from low-skilled jobs towards higher-skilled roles. This trend is especially evident in foreign direct investment enterprises, where increased use of technology and automation has allowed for greater output with relatively modest growth in employment.