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Hanoi’s FDI firms optimistic about production prospects in Q1/2022

Enterprises in the processing and manufacturing industries have a good feeling about their business activities.

Foreign-invested enterprises in Hanoi are optimistic about their business prospect with more than 70% forecasting a better/stable production and business situation in the first quarter of 2022 compared to the previous quarter in the context of Covid-19 being under control.

A production line at Garco10 factory. HNT Photo: Hoang Anh

This rate in the State-owned and non-State sectors is 90% and 79%, respectively.

This was the result of the latest survey on business trends of enterprises in the processing and manufacturing industries conducted by the Hanoi Statistics Office.

The survey showed that a large proportion of enterprises assessed their business situation as good with more than 80% of enterprises saying that their production volume in the first quarter of 2022 would increase or remain stable compared to the fourth quarter of 2021. 

In 2022, it is expected that the Covid-19 epidemic situation would still be complicated, affecting production activities and people's lives. Among the socio-economic development targets set for 2022, Hanoi aims to attain a GRDP growth of between 7% to 7.5%, for which, safe, flexible adaptation and effective control of the Covid-19 pandemic are as imperative as economic recovery and development so as to ensure social security, improve the investment and business environment.

According to a related survey nationwide, in the first quarter of 2022, as many as 45.6% of enterprises expected their production and business situation will be better compared to the fourth quarter of 2021 while 36.1% of enterprises forecast stability in their production and 18.3% of them see more challenges to come.

In terms of demand, more than 80% of enterprises expected to have increased and stable orders, and 16.8% predicted a decrease in orders.

Regarding export orders, 37.2% of enterprises expected to see new orders, 46.1% predicted orders to remain stable, and 16.7% of enterprises expect a decrease in the first quarter of 2022 compared to late 2021.