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The IIP for the processing and manufacturing industry fell by 2.4 in the quarter. The consumption index of the processing and manufacturing industry during the quarter decreased by 2.9 per cent year on year (YoY), indicating that production and business efficiency of enterprises was significantly affected.
The inventory of the processing and manufacturing industry in the quarter was up by 19.8 per cent YoY.
IIP in the quarter increased in 48 localities and decreased in 15 localities, a news agency reported. The decline in industrial production in the first three months was due to external and internal factors, while inflation is still high.
Export orders have decreased, greatly affecting the production of Vietnam's enterprises. The reopening of China has led to a lot of pressure on countries with similar export products, including Vietnam.
Enterprises still have difficulties accessing capital and face high bank interest rates and input costs of raw materials, especially in the processing and manufacturing industry. The absorption capacity of capital has begun to decrease due to the lack of orders.
In a GSO survey, 24.3 per cent of enterprises rated the production and business situation as better than in the fourth quarter of 2022.
For the second quarter this year, 44.1 per cent of those expect the trend to be better than the first, while 35.3 per cent said the production and business situation would be stable, and only 20.6 per cent forecast greater difficulties.
The nation had more than 23,000 enterprises returning to operation during Q1 2023, down by 10 per cent YoY. The number of enterprises temporarily suspending business during the quarter was 42,900, up by 20.1 per cent YoY.
About 12,800 enterprises stopped operating and waited for dissolution procedures, up by 13.1 per cent YoY, and 4,600 enterprises completed dissolution procedures, up by 6.5 per cent YoY.
Fibre2Fashion News Desk (DS)