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More than 49 per cent of manufacturing firms optimistic about Q3

Update: July, 22/2020 - 10:38

 

Workers of JEP Co Ltd on a headset component production line. 49.1 per cent of surveyed enterprises believe they are in better shape in the third quarter. — VNA/VNS Photo Phạm Kiên

HÀ NỘI — The number of processing and manufacturing enterprises optimistic about the business outlook in the third quarter increased compared to the previous three months, according to a recent survey by the General Statistics Office (GSO).

In total, 49.1 per cent of surveyed enterprises believed they will be in better shape in the next three months, an improvement compared to 38.8 per cent of firms that expected business improvement in the second quarter.

Only less than 20 per cent expected more difficulties in the third quarter while the number anticipating difficulties in the second quarter was 25.9 per cent. Meanwhile, 31.5 per cent of firms expect their business to be stable.

The non-State sector is the most optimistic with 82.6 per cent forecasting stable or better business performance in the third quarter.

The ratio in State-owned enterprises and foreign-direct-invested (FDI) enterprises were 79.7 per cent and 75.9 per cent, respectively.

Among main factors impacting production and business in the second quarter, 53.6 per cent of businesses said high domestic competitiveness would be influential, 50.4 per cent were concerned about low domestic market demand, 33.5 per cent pointed to financial difficulties and 28.2 per cent feared falling demand in international markets.

Other influential factors included the lack of energy and raw materials (27.4 per cent), shortage of employees (23.7 per cent) and old-fashioned technology and equipment (19.8 per cent).

The survey found that 48.8 per cent of firms anticipated their production volume would increase, compared to 18.1 per cent of businesses forecasting a drop and 33.1 per cent said it would be stable.

Regarding orders, 45.1 per cent expected more orders in the third quarter while only 18.3 per cent estimated a fall.

Of which, 34.1 per cent forecast a higher number of new export orders in the next three months and 21.9 per cent said they would face a fall in new export orders. This ratio in the last survey for the second quarter was 18 per cent and 37.5 per cent, respectively.

To support the growth of the processing and manufacturing industry in the remaining months of this year, Nguyễn Thị Hương, GSO general director, urged ministries and localities to continue reforming processes and facilitating enterprises’ access to support policies.

In addition, authorities should strengthen their assistance for businesses in finding import markets for raw materials, spare parts and components, tackling difficulties and helping them maintain production, Hương said.

She also highlighted measures such as encouraging people to use domestically manufactured goods and urging businesses to participate in restoring broken supply chains and building and developing new value chains, focusing on handling inventories. — VNS

 

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