Industry in Vietnam

In Vietnam numerous industries are present. In the North part most medium and heavy industry is situated. The list also includes the state-owned tin, chrome, coal and other mining enterprises. At Hanoi an engineering works is present while a power station and tea, modern tobacco and canning factories are also present.

In South part the industrial sector is present and this is characterized by consumer goods industry and light industry. It also includes textiles, pharmaceuticals and food processing. Some utilities and cement works are also there.

In North part of Vietnam lot of the industrial sector was badly damaged by US bombing raids and it happened during the war. In South part, after 1975 the private sector got permission to continue in operation. In March 1978, more or less all industry and commerce was nationalized. Ultimately the results were disastrous. In the area of other light industry and consumer goods, the government allows the existence of a small private sector.

After this the results were favorable. In the year 1980s the industrial production changed in positive way at an average annual rate of 9.5 percent. On 1990s, the industrial production raised up to about 12 percent per year.

In the year 2001 the gross industrial output increased by 14.2 percent. The public sector grew 15.3 percent but the private sector grew 20.3 percent. The foreign-invested sector ranges somewhat below average at 12.1 percent.

The foreign-invested sector makes up about 35 percent of the industrial production. It can be mentioned that the leading industrial sectors are garments, coal, chemical fertilizers, steel, glass, food processing, machine building, shoes, cement, mining, tires, oil and paper. Out of this food processing and also packaging accounts for 40 percent of total export turnover and the average annual growth raised up to 11 percent.

In 2001 the footwear and leather sector earned about 1.55 billion U.S. dollar. Vietnam is known as the eighth-largest exporter of footwear and leather.