Page 42 - Ebook HTKH 2024

The structure of industrial sectors has seen positive changes: industrial products
are increasingly diverse and enriched in variety, with improved quality. This has

progressively enhanced competitiveness, ensured supply and demand balance in the
economy, maintained domestic market stability, and expanded export markets.
The structure of industrial sectors is becoming more substantive with positive
trends. The proportion of manufacturing and processing industries in GDP has steadily
increased over the years, reaching 17% in 2022. Conversely, the proportion of mining
industries in GDP has gradually decreased, down to 5% in 2022.
The supporting industries have progressively developed to meet production and
assembly needs, increasing the localization rate in certain sectors. Industrial zones and

clusters have been formed and developed.
Industry has become the leading export sector in the country's total merchandise
export turnover: export growth is high, with the proportion of industrial product exports
averaging 85% of the total export turnover.
The structure of exported industrial products has shifted positively, with an
increasing proportion of processed and manufactured products in the total export

turnover.
Many industrial items, such as phones and components; electronics, computers and
components; textiles and garments; machinery, equipment, and spare parts; footwear;
and wood and wood products, have achieved export values exceeding 10 billion USD,
ranking high in comparison to the region and the world.
Despite the achievements in industrial development, there are still many
challenges and limitations from 2015 to 2022, which have slowed down progress and

affected the sustainability of Vietnam's industrial sector, specifically:
The growth rate of the industrial sector is trending upwards but remains low
compared to the economic development requirements.
The internal strength of the industrial sector is weak, with heavy reliance on
foreign-invested enterprises. Technology transfer is limited, especially concerning new
and clean technologies. The capability and efficiency of domestic industrial enterprises

are low.
The competitiveness of the industrial sector is still low, including innovation,
market expansion, and resilience to challenges. Domestic industrial enterprises have
struggled to compete effectively in the context of international economic integration.
The participation of Vietnamese industrial products in regional and global value
chains is mainly limited to processing and assembly stages. Most industrial products
from Vietnam have low technological content, except for electronics largely produced
by the FDI sector. The number of key industrial products with comparative advantage

is decreasing.
The quality of labor productivity in the industrial sector remains low, meaning
having the highest productivity due to its unique nature, including the value of natural
resources, followed by the manufacturing and distribution of electricity, gas, hot water,
and gas.

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