Vietnam’s manufacturing and processing sectors are demonstrating Vietnam manufacturing sector optimism about their business outlook for the second quarter (Q2) of 2025, as revealed by a survey conducted by the General Statistics Office (GSO). According to the findings, 45.8% of companies expect improved business performance in Q2 compared to Q1, while 39.2% foresee stability, and only 15% anticipate challenges ahead.
Foreign direct investment (FDI) enterprises exhibit the highest confidence, with 87% predicting growth or stability in production and operations. State-owned enterprises follow at 84.7%, while non-state firms also show strong optimism at 84.1%.
Regarding production output, 45.1% of businesses forecast growth in Q2 2025, 40.9% expect steady levels, and 14% predict a decline. Similarly, 43.3% of companies anticipate an increase in new orders, 42.8% expect stability, while 13.9% foresee a reduction. On export orders, 37.8% predict growth, 48.9% foresee no change, and 13.3% expect a decline, according to a domestic report.
Despite these positive forecasts, rising inventory levels remain a critical issue for manufacturers. Inventories have increased by 15.1% year on year, straining cash flow and hampering the ability of businesses to reinvest in future production cycles. Without adequate liquidity solutions, companies may face reduced output. Additionally, the growing global demand for environmentally friendly and high-tech production adds another layer of pressure.
The survey highlights several areas where businesses are calling for support. Around 40.4% of enterprises urge banks to continue reducing loan interest rates, while 28.3% advocate for stabilizing raw material prices. Furthermore, 25.1% call for simplified administrative procedures, and 24% emphasize the need for a steady raw material supply.
In the textile and footwear sectors, 47.9% of firms are pushing for lower lending interest rates, while 26.9% seek streamlined loan application processes. About 28.8% of these businesses are advocating for reduced administrative steps, 30.1% suggest improving logistics services, and another 30.1% aim for deeper integration into supply and production chains.
The demand for lower interest rates is especially significant in key regions. In Ho Chi Minh City, 68.8% of textile and footwear businesses have expressed this need, while in Thai Binh province, the figure is even higher at 85.7%. Similarly, 50% of businesses in southern Dong Nai province have raised the same concern. This trend reflects the broader Vietnam manufacturing sector optimism, as companies continue to navigate challenges and seek growth opportunities in an evolving global market.
