Industrial production to expand 6.6% in 2023

VOV.VN - The nation is predicted to record a rise of 6.6% in industrial production in the year, according to figures given by S&P Global Market Intelligence.

S&P Global noted that the Vietnamese manufacturing sector continued to face challenging business conditions in the opening month of the year as production and new orders continued to decline. Despite this difficult period, there were some signs of improvement in demand as new business fell at a softer pace, helped by a renewed expansion in new export orders.

The S&P Global Vietnam Manufacturing Purchasing Managers' Index (PMI), released on February 1, posted 47.4 in January, up from 46.4 in December but still pointing to a solid monthly deterioration in terms of the health of the manufacturing sector.

January data signaled a further marked decline in manufacturing production, albeit one that was slightly softer than seen in December. Lower new orders were often behind falling output, with some firms indicating that customers had sufficient stock holdings and therefore didn't need to make purchases at present.

Total new orders saw a decline for the third consecutive month in January as demand conditions remained challenging. However, there were some signs of improvement evident, particularly with regards to fresh export orders which rose for the first time in three months. As such, total new business fell at a modest pace, the slowest drop in the current period of decline.

The cost of raw materials, alongside falling workloads, meant that some firms were forced to lower their purchasing activities once again in January. Some signs of improvement in terms of demand conditions also encouraged other manufacturers to expand input buying, meaning that the overall purchasing activity was broadly unchanged. Declines occurring in the purchasing of inputs in previous months had led to a reduction in stocks of purchases.

Business confidence improved to a three-month high amid growing hopes that demand conditions will strengthen over the course of the year, feeding through to growth of output.

Furthermore, relaxation of pandemic restrictions in the mainland China can be viewed as another factor behind the positive outlook, with more than half of respondents being optimistic that production will rise over the next 12 months, according to S&P Global.

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