Majority of Vietnam’s processing and manufacturing businesses are optimistic about production prospects in the second half of 2016, according to survey results released by the General Statistics Office (GSO).
The GSO reported that 55.4% of respondents forecast an increase in production volume from July to December this year, 9.3% predict a decrease, and 35.3% foresee no change, said a news report from state-run VGP News.
Around 48.5% of the businesses predict an increase in purchase orders, 9.5% forecast a decrease, and 42% foresee stable orders. The forecast figures are 42.1%, 9.4%, and 48.5% for export purchase orders, respectively.
For the third quarter, 47.7% of the enterprises expect to see an upward trend in business production, while around 39.1% of respondents said production will be stable, and 13.2% believe the quarter will be tougher.
Nearly 50% of the businesses predict a surge in production volume in the third quarter compared to the second quarter, and 44.1% are optimistic about an increase in purchase orders in the third quarter.
Mining cuts down industrial output
Meanwhile, in the first half of 2016, the nation’s index of industrial production (IIP) rose 7.5% against the same period last year, but is lower than the growth rate of 9.7% recorded for the same period in 2015 owing to lower mining activity, according to GSO.
In June, IIP posted a year-on-year growth of 7.4%, said the agency. The processing and manufacturing sector grew 11.3%, electricity production and distribution expanded 10.8%, and water supply and treatment grew 7.6%. The mining industry declined 6.1%, however.
For the January-June period, the manufacturing and processing industries grew 10.1%, electricity production and distribution picked up 11.7%, and water supply and treatment increased 8.1%. Only the mining industry suffered a drop, down 2.2%.
The GSO attributed the IIP decline to six consecutive months of decreases for the mining industry as a result of lower oil prices.
In the first six months, metal production grew 19.7%; manufacture of electronic products, computers, and optics went up 17.9%; automobile production picked up 15.3%; and garments and textiles surged 15%.
Photo: Fahad Faisal
