Vietnam’s manufacturing and processing sector is displaying a positive outlook for business prospects in the second quarter (Q2) of this year, according to a recent survey conducted by the National Statistics Office (GSO). The results indicate that 45.8% of companies anticipate improved performance in Q2 2025 when compared to the first quarter, while 39.2% expect stability, and only 15% foresee facing additional challenges.
Companies with foreign direct investment (FDI) exhibit the highest levels of optimism, with 87% predicting either growth or consistent operations. This is closely followed by state-owned enterprises at 84.7%, and non-state businesses at 84.1%.
In terms of production volume, 45.1% of firms expect an increase in Q2 2025, while 40.9% foresee steady levels, and 14% anticipate a downturn. Similarly, new orders are expected to rise, with 43.3% of businesses anticipating an influx of new orders, 42.8% expecting stability, and 13.9% predicting a decline.
Regarding export orders, 37.8% of companies foresee an increase, 48.9% expect no change, and 13.3% predict a decrease, as reported by a local news agency.
However, a significant concern among Vietnamese manufacturers is the rise in inventories, which have surged by 15.1% year-on-year. High inventory levels can hinder cash flow, making it challenging for businesses to reinvest in future production cycles and potentially requiring them to reduce output if liquidity issues are not promptly addressed.
Additionally, the increasing global demand for sustainable, clean, and high-tech production methods is intensifying pressure on manufacturers.
The survey also indicated that 40.4% of businesses have urged banks to continue lowering loan interest rates, while 28.3% are advocating for the stabilization of raw material prices. Furthermore, 25.1% are seeking streamlined administrative processes, and 24% emphasize the importance of a reliable supply of materials.
In the textile and footwear industry, 47.9% of companies have requested lower lending interest rates, and 26.9% are asking for assistance in simplifying loan application processes. Meanwhile, 28.8% of businesses in this sector seek to reduce administrative hurdles, and 30.1% are calling for improvements in logistics services and greater involvement in production and supply chains.
The demand for reduced interest rates is particularly pronounced in key regions, with 68.8% of firms in Ho Chi Minh City, 85.7% in Thai Binh province, and 50% in southern Dong Nai province expressing this need.
