Over 42% of firms foresee better business performance in Q4

Over 42% of 30,587 enterprises in the processing-manufacturing sector that joined a recent quarterly survey by the General Statistics Office (GSO) expect their business performance in the fourth quarter of 2024 to be better than Q3.

Meanwhile, 40.4% of the surveyed enterprises said their business will remain stable and the remaining 17.4% of the firms foresaw more difficulties.

Indicators such as new orders, employment and production outputs are also forecast to grow in the fourth quarter.

Specifically, production outputs are expected to increase to 25.4% from the growth of 14.8% in the third quarter, indicating a strong recovery for the sector.

Businesses are also optimistic about the possibility of increasing new orders with an expected average increase of 24.3% against the 10.7% increase in the third quarter.

As many as 40.5% of businesses expect an increase in orders; 43.3% expect stable numbers and 16.2% forecast a decrease in orders.

Regarding export orders, 36% of businesses expect an increase in new orders; 47.6% predicted a stability and 16.4% anticipated a decrease.

Businesses with foreign direct investment (FDI) are forecast to achieve the most positive results, with the highest expected increase in production volume and new orders.

However, seeing current challenges, enterprises in the processing and manufacturing sector have called for support from the Government and management agencies.

Specifically, 43.4% of the enterprises recommended the Government continue to reduce lending interest rates so that enterprises can access capital for production and business.

Regarding raw materials and energy for production, 33.9% of the enterprises recommended the Government to issue policies to stabilise prices of raw materials and energy, and 25.4% suggested that the Government, ministries, agencies and localities take measures to stabilise the supply of raw materials for production.

Over 15% of the enterprises proposed the Government support enterprises in training and improving workers' skills to meet new requirements in production.

In addition, 20.5% of the enterprises suggested improving the quality of logistics services; 19.6% said land rents should be reduced for production and business; and 17% asked for stable power supply for production.

To increase the number of orders, 21.4% of the enterprises recommended the Government to continue taking measures to stimulate domestic demand. Meanwhile, 20.9% of the businesses suggested the Government, ministries, agencies and localities step up trade promotion, find new markets and new partners to support businesses in domestic and foreign markets.

The GSO survey also pointed out difficulties of businesses, including low demand in the domestic market, increasing competition and incomplete recovery of international markets./.