With increasing global demand and the government's support measures, the business outlook for companies in the field is expected to improve significantly in the coming months.
Reports from the ministry indicated that between January and April, the index of industrial production went up by about 6% compared to the same period last year. The manufacturing and processing sector, in particular, grew by 6.3%, contributing 5.5 percentage points to the overall increase.
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Production of tourist cars at the Ford Hai Duong automobile assembly plant |
A representative from the ministry attributed this positive outcome to the effectiveness of the government's support measures, increased FDI inflows boosting domestic production capacity, the global market's gradual recovery and adaptation to major disruptions in 2022 and 2023, and a rise in new export orders.
Additionally, the capacity of enterprises, especially domestic businesses, has improved, with their confidence bolstered by a stable macro-economic environment and the global market's recovery trend.
According to Dao Phan Long, Chairman of the Vietnam Association of Mechanical Industry, the continued efforts of developed countries to diversify supply sources, supply chains, and investments will help Vietnam become a significant production and export hub in the global value chain.
However, the global economic forecast for 2024 suggests weak growth, high inflation, and geopolitical tensions in various regions. Vietnam's participation in numerous free trade agreements and its open economy make it susceptible to negative impacts from these risks.
Long said firms still need connectivity solutions provided by ministries and sectors, as well as support from authorities in addressing difficulties relating to capital, interest rates, and administrative procedures.
The ministry pledged to expedite the disbursement of public investment and review pending issues to quickly bring key projects in the electricity, oil and gas, manufacturing, processing, and mining industries into operation, thereby creating market capacity for business development.
Source: VNA