Majority of enterprises forecast positive performance in Q2 2024

Specifically, 45.4 per cent of enterprises forecast their production and business activities in Q2 2024 will be more positive than Q1 2024, while 36.6 per cent of enterprises predict a stable production and business for the period.

Despite difficulties forecast for the second quarter of 2024, many enterprises in the processing and manufacturing industry expect their production and business activities in the quarter will improve, according to a recent survey of the General Statistics Office.

The GSO said more stringent requirements on quality, production process, information and green production will exert pressure on domestic businesses, but 82 per cent of the surveyed firms expect their business will improve from Q1, while only 18 per cent anticipate more difficulties.

Director of the GSO’s Industry and Construction Statistics Department Phí Thị Hương Nga said that industrial production thrived in the first three months of the year, with the sector’s index growing 5.7 per cent year-on-year. She noted that 26 out of 33 industries showed growth, with 12 of them posting two-digit expansion.

Strong growth was recorded in production of electrical equipment (24.8 per cent), that of metal (16.6 per cent) and furniture (18.1 per cent), she said, adding production of key exports bounced back such as garment and textile (14.6 per cent), clothes (3.7 per cent), and shoes and related items (5.5 per cent).

Industrial hubs posting high increases in index of industrial production (IIP) in Q1 included Bắc Giang (23.9 per cent), Thanh Hóa (20 per cent), Quảng Ninh (14 per cent), Hải Phòng (12.6 per cent), Vĩnh Phúc (6.7 per cent) and Thái Nguyên (6.2 per cent).

The IIP growth in Q1, nevertheless, was lower than the pre-pandemic level, and the lowest for Q1 in the past 10 years except for 2023.

To support production and business activities of industrial enterprises in the remaining quarters of 2024, Director General of the General Statistics Office Nguyễn Thị Hương said enterprises suggest the Government, ministries and localities to create opportunities for them to seek for new raw material supplying sources and customers.

Besides, it is necessary to publicise and enhance the role of the industries in society, which will help improve the skills and qualifications of workers, and reduce the shortage of skilled workers.

Nguyễn Trung Kiên, deputy director of the Department of Industry and Trade of Tuyên Quang Province, said to ensure the growth rate of industrial production until the end of this year, the province’s competent agencies will continue to work with investors to review the implementation of their projects to timely remove difficulties and obstacles to ensure the progress of the projects.

Besides taking effective solutions to ensure electricity supply according to the Prime Minister's directions, the agencies will also mobilise resources to develop infrastructure of industrial zones and clusters.

Meanwhile, Nguyễn Hiền Minh, director of Phú Thọ Province’s Statistics Department, said to continue maintaining growth momentum, the province is focusing on promptly handling difficulties for enterprises to promote industrial production. The province is implementing incentive policies on credit and exemption of taxes and fees to support enterprises that are facing difficulties in production and export.

Minh suggests that the Government take measures to stimulate consumer demand to support production of goods, besides stabilising prices and raw material supplying sources for enterprises.