FIRMS EXPECT STRONGER Q4 ACTIVITY DESPITE COST, FINANCING PRESSURES

More than VNĐ5 quadrillion is registered to be poured into the economy in the first nine months of this year, up 6.1 per cent.

Construction of a social housing project in Quảng Trị Province. Enterprises are expecting stronger business and production in the last quarter of this year. — VNA/VNS Photo Nguyên Linh

HÀ NỘI — Enterprises are expecting stronger business and production in the last quarter of this year, with new orders, output and labour demand set to improve, although high input costs and cash-flow constraints remain major concerns, according to a survey by the National Statistics Office (NSO) released late last week.

The survey of more than 6,000 manufacturing and processing firms and over 5,800 construction companies across Việt Nam found that 83.9 per cent of firms in the manufacturing and processing industry expect improvement or stable results.

The outlook for orders and production was also positive.

Some 85.6 per cent of manufacturing firms expect new orders to rise or remain unchanged in the fourth quarter, while 85 per cent expect export orders to increase or remain stable.

Construction firms also reported a more stable outlook with about 72.8 per cent expecting improvement or stability in the fourth quarter. Around 82.8 per cent expect the number of new construction contracts to increase or remain stable.

However, enterprises also cited pressure on business costs and access to finance.

Some 94.7 per cent of manufacturing firms and 65 per cent of construction firms cited higher raw-material costs as a major difficulty. Among construction companies, 25.5 per cent reported problems with outstanding construction payments, while only 30.5 per cent had access to preferential loans.

The NSO said further efforts are needed to monitor market developments, stabilise prices of raw materials and construction materials, resolve outstanding public construction payments to improve contractors’ cash flow and help businesses access preferential credit at reasonable interest rates.

It also called for faster licensing and extensions for mines supplying common construction materials to ensure adequate supplies for major projects.

The NSO's report on January - September socio-economic development also showed that Việt Nam recorded nearly 149,700 firms in the period, up 3.2 per cent from a year earlier, with registered capital rising 32.7 per cent to VNĐ1.884 quadrillion (US$71.5 billion).

Average registered capital per newly established business rose by 28.5 per cent to VNĐ12.6 billion.

The total capital registered to be poured into the economy during the period exceeded VNĐ5 quadrillion, up 6.1 per cent.

However, the number of businesses returning to operation fell by 14 per cent to about 74,300, bringing the combined number of newly established and returning businesses to more than 223,900, down 3.2 per cent over the same period last year.

At the same time, about 89,800 businesses temporarily suspended operations during the period, down 9.7 per cent from a year earlier. Another 33,500 stopped operating while awaiting dissolution procedures, down 37 per cent.

More than 48,700 businesses completed dissolution procedures, however, an increase of 118.8 per cent year-on-year.

On average, about 24,900 businesses entered the market each month during the first nine months while about 19,100 businesses exited. — VNS

Source: VNS