Majority of enterprises forecast positive 2Q24

HANOI: Despite difficulties forecast for the second quarter of 2024 (2Q24), many enterprises in the processing and manufacturing industry expect their production and business activities to improve, according to a recent survey of the General Statistics Office (GSO).

The GSO said more stringent requirements on quality, production processes, information and green production will exert pressure on domestic businesses, but 82% of the surveyed firms expect their business to improve from the first quarter (1Q), while only 18% anticipate more difficulties.

Director of the GSO’S Industry and Construction Statistics Department Phi Thi Huong Nga said that industrial production thrived in the first three months of the year, with the sector’s index growing 5.7% year-on-year. She noted that 26 out of 33 industries showed growth, with 12 of them posting double-digit expansion.

Strong growth was recorded in production of electrical equipment (24.8%), metal products (16.6%) and furniture (18.1%), she said, adding that production of key exports bounced back, such as garments and textiles (14.6%), clothing (3.7%), and shoes and related items (5.5%).

Industrial hubs posting high increases in the index of industrial production (IIP) in 1Q included Bac Giang (23.9%), Thanh Hoa (20%), Quang Ninh (14%), Hai Phong (12.6%), Vinh Phuc (6.7%) and Thai Nguyen (6.2%). The IIP growth in 1Q, nevertheless, was lower than the pre-pandemic level, and the lowest for 1Q in the past 10 years except for 2023.

To support production and business activities of industrial firms in the remaining quarters of 2024, director-general of the GSO Nguyen Thi Huong said enterprises suggested the government, ministries and local governments create opportunities for them to seek new raw material supply sources and customers.

It was also necessary to publicise and enhance the role of industries in society, which would help improve the skills and qualifications of workers, and reduce the shortage of skilled workers.

Nguyen Trung Kien, deputy director of the Industry and Trade Department of Tuyen Quang Province, said to ensure the growth rate of industrial production until the end of this year, the province’s agencies will continue to work with investors to review the implementation of their projects to improve conditions. — Viet Nam NEWS/ANN

“Industrial production thrived in the first three months of the year, with the sector’s index growing 5.7% year-on-year.”