The driving force for businesses to "sprint" at the end of the year

Anmi Tools Company invests in many modern equipment to maximize growth opportunities.

Many positive signals for growth

In the first months of 2024, industrial production maintained positive growth momentum. According to the Ministry of Planning and Investment, in the first 7 months of the year, the industrial production index of the whole industry is estimated to increase by 8.5% over the same period last year, only lower than the 8.6% of 2022 in the 2020-2024 period. With the overall results of the whole industry, many businesses are also in an excited mood to enter the year-end business period.

Regarding the textile and garment sector, Mr. Cao Huu Hieu, General Director of the Vietnam Textile and Garment Group, said that most garment enterprises currently have enough production orders until the end of the third quarter of 2024 and continue to negotiate and sign contracts for the fourth quarter of 2024. He also optimistically emphasized that with a growth rate of 5% in the first half of the year, the export turnover of the Vietnamese textile and garment industry in 2024 is forecast to increase by 8-10% compared to 2023, in which the business results of the Vietnam Textile and Garment Group will be better than expected thanks to more positive signals from the market, especially the fiber industry.

Furthermore, the international context also has many supports for businesses. For example, Bangladesh is one of Vietnam's main competitors in textile and garment exports, but the ongoing political instability in this country has severely affected production and exports, creating opportunities for Vietnam as many customers have to shift orders to other countries to make up for the shortage. Analysts from SSI Securities Company also commented that many factories in Bangladesh have closed, so customers will consider shifting orders to other countries, including Vietnam.

For the supporting industry sector, a series of investment information from the beginning of the year to support policies have created a foundation for businesses to strive to rise. Mr. Nguyen Hong Phong, CEO of An Mi Tools Co., Ltd. (Anmi Tools) enthusiastically shared that the business's operations in the first months of the year have all grown well, thereby moving towards the expectation that revenue growth for the whole year of 2024 can reach up to 35% compared to the same period last year, revenue from export activities also grows sustainably.

To achieve this result, Mr. Phong said, not only thanks to taking advantage of economic opportunities, the factory has also continuously updated with new and modern technology trends, invested in production lines imported from advanced countries such as Germany, Switzerland, etc. to increase the conditions for participating in the supply chains of partners and multinational corporations. With this foundation, Anmi Tools expects to increase the number of customers, especially large customers who are foreign investors, aiming to expand and develop production centers in ASEAN markets by 2025.

In addition, for construction materials industry enterprises, the Government's moves to remove obstacles for the real estate and construction sectors, as well as drastic measures to promote public investment, will create momentum for enterprises to recover and develop, creating a premise for stronger development next year.

According to a recent report from SSI Securities, the total after-tax profit in the second quarter of 2024 belonging to parent company shareholders of more than 1,100 listed enterprises on the stock exchange as of August 7 increased by 19.2% over the same period and increased by 7.5% compared to the most recent quarter, bringing the profit level to the highest level in 9 quarters and close to the peak of the first quarter of 2022. Experts also emphasized that the recovery trend becomes clearer, especially in the non-financial sector. Therefore, many forecasts predict that the profits of enterprises in the third quarter of 2024 and the whole year of 2024 will continue to record many strong increases.

Promoting support for businesses

Although the above results bring much optimism, in reality, businesses still face many difficulties from barriers related to administrative procedures, business environment to market difficulties, and unpredictable economic and political fluctuations in many countries.

According to economic expert Dr. Can Van Luc, businesses are still facing many financial difficulties when input costs increase while output prices do not increase. For export businesses, orders have recovered and returned recently but slowly and there are some changes when orders are shorter than before, only for a few quarters, and customers request no price increase. This causes the profit margin of some industries to narrow.

Therefore, according to experts, support for business growth in the last months of the year needs to come from solutions related to stimulating consumption and private investment, in which it is necessary to continue promoting policies that have been having positive effects in the past. The good news is that a series of fiscal policies have been implemented and highly appreciated by businesses, in which tax and fee exemptions have helped businesses increase business costs and promote consumption. Banks are also making efforts to reduce lending interest rates, pushing credit flows into the economy to create conditions for businesses to continue expanding investment and business. Many activities related to connecting supply and demand, developing e-commerce, promoting public investment, etc. continue to receive strong attention and implementation.

According to the representative of the Vietnam Association of Mechanical Enterprises, enterprises need more support and facilitation from the Government in terms of solutions to stimulate consumption, promote trade to expand export orders, as well as increase solutions to support enterprises to participate in the global value chain. In addition, enterprises also proposed solutions to promote the process of restructuring the economy, strongly improve the business environment as well as cut administrative procedures, continue to take advantage of opportunities from new driving forces from the digital economy, green economy, circular economy, energy conversion, etc.