Manufacturing businesses expect strong growth towards year-end

In the first 6 months of 2024, textile and garment was one of the industries with the top export turnover in the country with 16.282 billion USD, an increase of 3% over the same period last year.

Since the beginning of the second quarter of 2024, orders have improved rapidly, and businesses have entered high-intensity production. Mr. Cao Huu Hieu - General Director of Vietnam Textile and Garment Group said that most garment enterprises have had 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 - the peak production season for Christmas and New Year orders.

“ Based on existing signals, especially the situation of many orders in the third and fourth quarters, combined with a 5% growth rate in the first half of the year, it is forecasted that the export turnover of the Vietnamese textile and garment industry in 2024 will increase by 8-10% compared to 2023. For the Group, with more positive signals from the market, especially the fiber industry, the production and business results in the last 6 months of the year will be better than expected ,” Mr. Hieu commented.

Also having strong expectations for the year-end market situation, Mr. Pham Cong Thao - Deputy General Director of Vietnam Steel Corporation (VNSteel) shared that in the last 6 months of the year, the steel market is likely to continue to recover thanks to a number of positive factors such as: Vietnam's economy is growing well, growth indicators are improving every quarter, public investment activities continue to be promoted. The Government is also very interested in removing obstacles for the real estate and construction sectors, creating a premise for domestic steel consumption demand to continue to recover.

In addition, new policies and laws such as the Law on Real Estate Business, the Land Law (amended), and the Housing Law (amended), if applied early, will be one of the factors contributing to improving demand for the real estate sector in the second half of the year.

Manufacturing businesses expect strong growth towards year-end

For Vietnam Steel Corporation, to ensure production and business results, the Corporation has implemented many solutions to boost consumption and maintain market share, while at the same time increasing the search for export markets.

The Corporation also directed its member units to seek solutions to reduce costs, improve competitiveness with the goal of completing the 2024 production and business plan and striving for positive results this year.

In general, manufacturing enterprises have a positive view of the market situation in the last months of the year. Especially for some industries with "seasonal" seasons towards the end of the year such as: Textiles, footwear, steel... it is expected to create a strong boost for the industry and reach the finish line "on time".

From a macro perspective, based on a practical survey, the General Statistics Office also gave positive results. Accordingly, the results of the survey on business trends of enterprises in the processing and manufacturing industry showed that: In the third quarter of 2024, 40.7% of enterprises expected the trend to improve compared to the second quarter of 2024; 42.2% of enterprises said that the production and business situation would be stable and 17.1% of enterprises predicted more difficulties.

Regarding production volume, the trend in the third quarter of 2024 compared to the second quarter of 2024, 39.8% of enterprises forecast an increase in production volume; 44% of enterprises forecast stability and 16.2% of enterprises forecast a decrease.

Regarding orders, the trend in the third quarter of 2024 compared to the second quarter of 2024, 38% of enterprises expected to have an increase in orders; 45.8% of enterprises expected to have stable orders and 16.2% of enterprises expected to have a decrease in orders.

Export orders, trend in Q3/2024 compared to Q2/2024, 33.1% of enterprises expect an increase in new export orders; 50.6% of enterprises expect stability and 16.3% of enterprises expect a decrease.

Although production has improved, many businesses have identified many challenges in the second half of the year: Logistics costs are at risk of continuing to increase, basic wages are increasing, and bank interest rates remain high.

Therefore, to support businesses in taking advantage of market opportunities and speeding up the recovery, the General Statistics Office recommends reducing lending interest rates to reduce pressure on input costs for production and business; having policies to stabilize prices of raw materials, fuel, materials, and input service prices; adjusting taxes and fees accordingly; continuing to cut down on conditions and procedures for borrowing capital.

In addition, the Government, ministries, sectors and localities continue to have measures to stimulate domestic demand through increasing trade promotion, finding new markets, and supporting businesses to expand output markets for their products.

Source: https://congthuong.vn/doanh-nghiep-san-xuat-ky-vong-tang-truong-manh-ve-cuoi-nam-329534.html