Over half of companies confident of better performance in Q3

Wednesday, 2017-07-12 09:26:07
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More than half of processing and manufacturing companies expect better business performance in Q3.
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NDO/VNA – More than half of processing and manufacturing companies expect better business performance in Q3, according to a recent survey conducted by the General Statistics Office (GSO).

The survey showed 52.1% of the surveyed companies believe that their production and business situation will improve in the third quarter of 2017 while 12% anticipate more difficulties and 35.9% think the situation will remain stable.

About 53.4% of the businesses forecast their production output will increase from Q2 while 36% said it will remain unchanged. Only 10.6% said their production may decline.

An augmentation in export orders is forecast by 40.3% of the questioned firms, and 49.4% expect the same volume of export orders as in Q3, while 10.3% anticipate a reduction.

The GSO said while 20.7% of the respondents believe their production costs will rise from Q2, 69.7% said they will stay stable and 9.6% said the costs will reduce.

18.2% of the respondents said their products will be sold at higher prices in Q3 compared to the previous quarter, 74.5% expect unchanged prices. Only 7.3% of the businesses predict lower prices.

Meanwhile, 20.1% of the surveyed enterprises plan to expand their workforce in the third quarter, 72.4% said they will maintain the current size of workforce. Only 7.5% said they will reduce the number of employees.

Head of the GSO's Department of National Accounts Ha Quang Tuyen highlighted improved forecast for enterprises’ business in Q3, saying that this is one of the resources for economic growth in the remaining time of 2017.

Another resource is the growth of the private sector. In the first six months this year, more than 61,000 companies were established with total registered capital of VND596 trillion (US$26.22 billion), up 12.4% in number and 39.4% in capital year on year.

Over 60% of the total investment remains to be disbursed in the second half of this year, indicating a favourable condition for realising the target of GDP growth rate of 6.7% in 2017, Tuyen said.