Vietnamese businesses face profit pressures despite rising orders

Manufacturing enterprises in Vietnam are experiencing a disconnect between rising order volumes and actual profitability. While the industrial production index in Ho Chi Minh City rose 10.9% during the first nine months of 2026, many companies struggle to maintain profit margins due to high costs for raw materials, logistics, and labor.

High interest rates remain a significant burden for the business community. To combat these pressures, some firms are turning to digital transformation and green transitions to optimize production processes and reduce costs.

In the steel sector, Thai Nguyen Iron and Steel Joint Stock Company (Tisco) reported a turnaround in performance. For the first nine months of 2026, Tisco achieved net revenue of over 10,744 billion VND, a 19.5% increase year-on-year, resulting in a profit after tax of nearly 28 billion VND compared to a loss in the same period last year.