The ministry anticipates a significant improvement in the business outlook for industry players in the coming months, driven by rising global demand and supportive government measures.
Reports from the ministry revealed a 6 per cent increase in the index of industrial production from January to April compared to the same period last year even if the manufacturing and processing sector, in particular, expanded by 6.3 per cent, contributing 5.5 percentage points to the overall growth.
This positive trend is attributed to several factors, including effective government support measures, increased foreign direct investment (FDI) inflows enhancing domestic production capacity, the global market's gradual recovery and adaptation to disruptions in 2022 and 2023, and a surge in new export orders.
Furthermore, the capacity of enterprises, especially domestic ones, has strengthened, buoyed by a stable macroeconomic environment and the global market's recovery trajectory.
Dao Phan Long, chairman of the Vietnam Association of Mechanical Industry, emphasised that the ongoing efforts of developed nations to diversify supply sources, supply chains, and investments will position Vietnam as a significant production and export hub in the global value chain.
However, the global economic outlook for 2024 forecasts weak growth, high inflation, and geopolitical tensions across regions even as Vietnam's participation in multiple free trade agreements and its open economy expose it to potential negative impacts from these risks.
The ministry pledged to expedite public investment disbursement and address pending issues to promptly operationalise key projects in electricity, oil and gas, manufacturing, processing, and mining sectors.
This initiative aims to enhance market capacity for business development swiftly.
ALCHEMPro News Desk (DR)
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