Manufacturing Drives Growth as Lam Dong Pursues Double-Digit Expansion

Manufacturing Emerges as a Key Growth Engine

The year 2026 marks a pivotal stage in Lam Dong’s socio-economic development strategy. During the first five months of the year, industrial production has emerged as one of the province’s strongest-performing sectors, with manufacturing continuing to reinforce its role as a leading driver of economic growth.

While recent indicators point to a robust recovery, provincial authorities acknowledge that achieving double-digit gross regional domestic product (GRDP) growth will require both capitalizing on positive momentum and addressing persistent structural constraints.

Strong Performance Across Key Industries

According to the Lam Dong Statistics Office, the province’s Industrial Production Index (IIP) increased by 8.04% year-on-year during the first five months of 2026.

In May alone, industrial output accelerated significantly, rising 12.03% compared with April and 15.34% compared with the same month last year. The figures reflect strong business resilience and improving production capacity across multiple sectors.

Growth was largely driven by two key industries: mining and manufacturing.

Mining recorded the highest growth rate, expanding by 20% year-on-year. The increase was closely linked to rising demand for construction materials, particularly building stone production, which rose 20.63% to nearly 1.7 million cubic meters. The sector has benefited from accelerated public investment disbursement and the implementation of major infrastructure projects.

Manufacturing followed closely, growing by 18.01%, reinforcing its position as the core of Lam Dong’s industrial economy.

Several major product categories posted strong gains:

• Fertilizer production: +36.64%
• Footwear manufacturing: +25.18%
• Processed seafood products: +18.05%
• Beverages and fruit-based wine production: +16.52%

The ability of local manufacturers to secure export orders and raw material supplies early in the year has strengthened confidence in the sector’s competitiveness.

Labor Market Gains Reflect Business Confidence

The industrial recovery has also translated into stronger labor demand.

Data from the provincial Statistics Office show that overall employment in industrial enterprises increased by 6.19% during the first five months of the year. Employment in the manufacturing sector rose by 7.19%.

Particularly notable was the performance of private enterprises, with employment surging by 13.22%.

The figures suggest that business confidence has returned and that private-sector companies are actively expanding operations to fulfill longer-term orders.

Industrial Zones Face Structural Challenges

Despite encouraging industrial indicators, major challenges remain.

To date, Lam Dong has attracted 244 investment projects into its industrial zones, with total registered capital exceeding VND 46.7 trillion and USD 515 million.

However, newly registered industrial land covers only 727.11 hectares, equivalent to an occupancy rate of 53.88%.

This means nearly half of the province’s industrial land remains unused, representing a significant underutilization of resources.

Infrastructure development within industrial parks has also progressed unevenly.

Among the province’s 14 industrial zones, only six reported active infrastructure construction or maintenance activities during May. Total disbursement reached just VND 20.41 billion, equivalent to 2.32% of the annual investment plan.

While Ham Kiem II Industrial Park and Tan Duc Industrial Park recorded relatively strong implementation progress, projects at Phan Thiet Industrial Park, Ham Kiem I Industrial Park, and Song Binh Industrial Park each disbursed less than 1% of planned capital.

Five industrial parks remain either under construction or have yet to attract investment projects.

Removing Infrastructure Bottlenecks

Provincial officials believe infrastructure development will be decisive in sustaining economic momentum.

According to Pham Quoc Hung, Head of the Lam Dong Statistics Office, the province must achieve growth of between 11% and 12% during the second quarter to remain on track for its double-digit growth target.

As a result, the industry and construction sectors face considerable pressure to accelerate performance, particularly through public investment projects.

Nguyen Hong Hai, Member of the Provincial Party Standing Committee and Vice Chairman of the Lam Dong Provincial People's Committee, emphasized that future growth opportunities extend beyond energy projects. “In addition to power projects, significant growth potential remains in the development of industrial zone infrastructure.”, he said.

A Roadmap for Sustainable Industrial Growth

To unlock future growth, Lam Dong is pursuing several strategic priorities.

Accelerating Industrial Infrastructure

The province plans to speed up site clearance and compensation processes, particularly at major industrial parks such as Tan Duc Industrial Park and Song Binh Industrial Park.

Local authorities are expected to be held directly accountable for delivering cleared land and ensuring infrastructure readiness.

Priority investments include major transportation corridors and wastewater treatment facilities to accommodate large-scale industrial projects.

Attracting Higher-Quality Investment

Investment promotion efforts are being redirected toward high-tech enterprises and higher-value-added industrial activities.

Provincial leaders aim to leverage Lam Dong’s resource advantages to attract projects in:

• Deep mineral processing;
• High-tech agricultural processing;
• Forestry and seafood processing industries;
• Advanced manufacturing sectors.

These investments are expected to increase value-added production while strengthening local supply chains.

Expanding Clean Energy Capacity

Energy infrastructure remains a critical component of industrial competitiveness.

The province is prioritizing upgrades to the electricity transmission network and the expansion of renewable energy projects to ensure a reliable power supply for large-scale industrial operations.

Building a Skilled Workforce

Workforce development is another key focus.

With labor demand rising among both private enterprises (+13.22%) and foreign-invested companies (+4.95%), Lam Dong plans to strengthen partnerships between universities, colleges, vocational institutions, and industrial parks.

The goal is to transition from labor-intensive production toward technology-intensive manufacturing through targeted workforce training programs.

Industrial Recovery Fuels Growth Ambitions

The strong industrial rebound recorded during the first five months of 2026 has created a solid foundation for higher economic growth.

Provincial leaders believe that by accelerating industrial park development, attracting high-quality investment, expanding energy infrastructure, and maximizing the potential of manufacturing and processing industries, Lam Dong can realistically achieve its target of double-digit GRDP growth in 2026.