Processing-manufacturing companies optimistic about Q4 business outlook

Covering about 6,500 enterprises in the sector, the survey revealed that 35.4% of firms predict a stable business situation into the future and only 19% see more difficulties ahead.

The FDI sector showed more optimism that most, with 82.8% of enterprises believing in a better and more stable situation in the fourth quarter compared to the third. The ratio in the State-owned sector was 81.7% and the non-State sector 80.2%.

Meanwhile, 32.2% of enterprises said production in the third quarter was better than in the second, while 31.9% said business faced difficulties in Q3 and 35.9% reported stable operations.

In terms of production volumes, 36% said they posted increases in the third quarter over the second quarter, while 30% saw losses and 34% were stable. Some 45.9% expected rising production volumes over the remainder of the year, 36.6% predict stability, and 17.5% foresee declines.

Regarding the number of orders, 30.9% of respondents said they received more in the third quarter than in the second quarter, 30.6% saw fewer, and 38.5% reported that orders were stable.

For the fourth quarter, 35.6% of enterprises said that they hoped for more export orders while 20.4% believe orders would be fewer and 44% expect a stable number of orders for export.

Though the results of the survey were optimistic overall, the GSO pointed out that in the first nine months of 2020, the number of businesses temporarily suspending operations stood at 38,600, up 81.8% against the same period last year, while 27,600 businesses ceased business while awaiting dissolution and nearly 12,100 completed dissolution procedures.