Over 59% of construction firms see stable or better business outlook

Saturday, 2019-01-05 17:26:45
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About 37.7% of construction firms see a stable outlook and 23.9% predict improved prospects. (Photo: VnEconomy)
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NDO - An estimated 59.6% of construction enterprises expect their business situation to be stable or better in the first quarter of 2019, according to a recent survey by the General Statistics Office (GSO).

Specifically, 37.7% of firms see a stable outlook and 23.9% predict improved prospects. Meanwhile, 37.5% project the situation to worsen in the first three months of the year.

Domestic private enterprises are the most optimistic about their outlook with 59% believing their outlook will remain stable or be better, while the figures were 57% and 58% for state-owned enterprises and foreign-invested companies.

Concerning business costs, three in five enterprises in the foreign sector expect costs to remain unchanged or decrease, while the private domestic and state sectors are less optimistic with corresponding figures at 49% and 48%.

Roughly half of all state-owned construction firms predict building materials to remain unchanged or increase, while the proportions were 49% and 62% in the domestic private and foreign-invested sectors respectively.

The survey also shows that an estimated 56% of enterprises see labour costs to be flat or lower in the first quarter of 2019.

According to the GSO, the findings were compiled from a survey of nearly 5,300 construction companies from 63 provinces and cities in Vietnam.

The statistical agency recommends that the government needs to further cut business regulations and administrative procedures, and introduce policies to encourage household business to convert into enterprises in order to bolster economic performance.