Vietnam's manufacturers optimistic about Q2 despite challenges
Vietnam's manufacturing and processing companies are optimistic about business prospects in the second quarter (Q2) this year, a recent survey by the National Statistics Office (GSO) revealed.
Results show 45.8 per cent of businesses expect better business performance in Q2 2025 compared to Q1, while 39.2 per cent anticipate stability and a mere 15 per cent foresee more difficulties ahead.
Vietnam's manufacturing and processing firms are optimistic about Q2 2025 prospects, with 45.8 per cent expecting better performance over Q1, 39.2 per cent anticipating stability and 15 per cent foreseeing more difficulties ahead, a survey found. In the textile-footwear sector, 47.9 per cent want reduced lending interest rates, while 26.9 per cent want streamlined loan application process.
Enterprises with foreign direct investment (FDI) are the most optimistic, with 87 per cent forecasting either improvements or stability in production and operations. State-owned enterprises follow with 84.7 per cent, and non-state firms at 84.1 per cent.
While 45.1 per cent of businesses expect growth in production volume in Q2 2025, 40.9 per cent expect it to hold steady, and 14 per cent anticipate a decline.
New orders are also projected to rise, with 43.3 per cent of businesses expecting more new orders, 42.8 per cent forecasting stability and 13.9 per cent foreseeing a decline.
Up to 37.8 per cent of enterprises expect an increase in export orders; 48.9 per cent expect no change and 13.3 per cent anticipate a decrease, a domestic news agency reported.
A key concern for Vietnamese manufacturers is rising inventories, which surged by 15.1 per cent year on year. High inventory levels limit cash flow, making it harder for businesses to reinvest in upcoming production cycles and potentially forcing them to cut back on output, if liquidity is not addressed promptly.
Rising demand for green, clean and high-tech production globally adds further pressure.
The survey showed 40.4 per cent of enterprises have urged banks to continue cuts in loan interest rates, while 28.3 per cent of businesses called for price stabilisation of raw materials, 25.1 per cent sought more streamlined administrative procedures and 24 per cent emphasised the need for stable material supply.
Regarding the textile and footwear sector, 47.9 per cent of enterprises proposed a reduction in lending interest rates, while 26.9 per cent requested support in streamlining loan application procedures.
Some 28.8 per cent of textile and footwear businesses called for cutting down administrative processing steps, 30.1 per cent suggested improving logistics service quality and 30.1 per cent expressed a desire to participate more deeply in production and supply chains.
The demand for lower interest rates was particularly high in key localities, with 68.8 per cent of such businesses in Ho Chi Minh City, 85.7 per cent in the Thai Binh province and 50 per cent in southern Dong Nai province expressing such demand.
Fibre2Fashion News Desk (DS)
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