Ho Chi Minh City’s Index of Industrial Production (IIP) is estimated to post growth of 17.3 per cent year-on-year in 2022, with four key industries picking up by 19.92 per cent.

According to the city’s Department of Industry and Trade, the pharmaceutical chemistry - rubber - plastic industry is likely to post growth of 26.5 per cent. Output in the pharmaceutical chemistry industry is increasing due to higher demand for healthcare among local people post-pandemic. Meanwhile, the plastic processing and manufacturing industry is benefiting from the EU-Vietnam Free Trade Agreement (EUVFTA), with more opportunities opening up for exports and imports and attracting foreign investment. Vietnam’s plastic products have now reached nearly 160 markets.

The IIP in the food and beverage processing industry is expected to rise 28.2 per cent in 2022 thanks to the recovery of outdoor recreation, catering, tourism, and travel services in the first quarter.

The mechanical engineering industry is projected to see a 11.3 per cent rise year-on-year while the electronics manufacturing industry will increase 5.8 per cent.

The Department said the IIP growth demonstrates a clear recovery in the local economy.