Manufacturing firms perform better in Q2

Thursday, 2018-06-28 16:35:49
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Up to 82.6% of the processing and manufacturing enterprises said they enjoyed a more stable and better business operation in the second quarter this year.
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NDO/VNA – Up to 82.6% of the processing and manufacturing enterprises said they enjoyed a more stable and better business operation in the second quarter of the year, according to the General Statistics Office of Vietnam.

The foreign direct investment firms have the highest business confidence with 85.7% believing that their business improved and stabilised during April-June. Meanwhile, the percentage for state-owned and private companies was 80.8% and 81.6%, respectively.

In stark contrast, 17.4% of the firms said that they had to struggle more than the previous quarter.

Competitiveness was touted as the dominant factor that left enormous impacts on production and business activities. According to the statistics office, 59.4% of the firms said that they were affected by competitive edge while 46.2% believed that underperformed business was spurred by low demands in the domestic market.

Financial issue, shortage of qualified labourers, high deposit rate, lack of materials, and out-of-date technology and equipment were the other factors challenging local businesses in the period.

Regarding volume of orders, 82.8% of the firms reckoned that the number would be higher than the previous quarter while 17.2% said that they would face fewer orders than the previous quarter. Up to 84.8% of the enterprises affirmed that they had more orders from overseas market.

Product inventory was reported to decrease or remain stable among 81.7% of the domestic companies.

However, the statistics department said that businesses have more positive outlook for their business prospects in Quarter 3 with 88.5% of the firms upbeat about their performance.

The statistics were compiled based on the latest survey on the quarterly business performance trend of 6,500 industrial processing and manufacturing companies in 63 provinces and State-run cities.