MANUFACTURING FIRMS OPTIMISTIC ABOUT Q2 BUSINESS OUTLOOK

Workers are seen at a local factory - PHOTO: VNA

HCMC – Nearly 46% of manufacturing and processing firms expect better business conditions in the second quarter of the year, according to a survey released by the General Statistics Office (GSO).

The survey found that 45.8% of firms expect conditions to improve, 39.2% anticipate stability, and 15% forecast greater challenges, according to the Vietnam News Agency.

Notably, foreign-invested enterprises (FDI) are the most optimistic, with 87% expecting business conditions in the second quarter to improve or remain stable. The corresponding figures are 84.7% for state-owned enterprises and 84.1% for non-state firms.

In terms of production volume, 45.1% expect output to rise, while 40.9% anticipate stable levels and 14% forecast a decline. Around 43.3% of firms predict an increase in new orders, 42.8% expect volumes to remain unchanged, and 13.9% foresee a decrease.

Regarding export orders, 37.8% of enterprises forecast an increase in new export orders, 48.9% expect volumes to remain steady, and 13.3% anticipate a decline.

GSO leaders noted that the national economy will continue to face major challenges in the second quarter.

Businesses may struggle with capital shortages, which could force them to scale back production if working capital is not replenished in time. In addition, shifts in tariff policies are expected to increase price pressures and further erode the competitiveness of Vietnamese products.

Source: The Saigon Times