Nearly 90% of manufacturing-processing firms see growth in Q3
Some 89.6% of enterprises in the manufacturing-processing industry expect expanded or stable production in the third quarter of 2018, over the previous quarter when only 52.6% hoped for growth.
According to a survey by the General Statistics Office (GSO), only 10.4% of the asked firms forecast a drop in their production.
Meanwhile, 91.7% of enterprises with foreign direct investment (FDI) said their production is likely to increase or remain stable, while the ratio among the non-State firms is 88.9%, and that of the State-owned sector is 87.8%.
The brightest production prediction in the rest of the year was from the garment sector where 66% of firms see expansion, followed by electronic, computer and optical product producers, and paper and paper product producers with 65.1%, beverage producers at 62.7% and rubber and plastic product producers at 61.9%.
The GSO also forecast export orders, with growth and stability predicted in 90% of businesses.
Compared to the second quarter of 2018, 92.7% of FDI enterprises predicted that their orders will increase or stay stable in the third quarter, while the ratio among State-owned firms is 90.3% and non-State firms 87.6%.
The highest amount of orders in the rest of the year belongs to cigarette production at 56.3%, followed by transportation at 55.6%, garment at 55.4%, electronics, computer and optical product production at 53.6% and metal production at 50%.
Pham Dinh Thuy, Director of the GSO’s Industrial Statistics, said economic growth is still dependent on the FDI sector, as the sector has contributed largely to the creation of jobs, export revenue and State budget collection.