Manufacturing companies are still full of confidence in the long-term development prospects of the Greater Bay Area (GBA), and the enterprises hold a more positive attitude about the future of the Chinese market than other markets, the “2022 Greater Bay Area Manufacturing Survey Report” indicated.
The report published by Standard Chartered examined the production, operations and prospects of the manufacturing companies in the greater bay area, with over 200 manufacturing companies surveyed from April to May this year.
Although the survey was conducted at a time when several pandemic outbreaks were reported in the Chinese mainland, the interviewed manufacturing companies are still full of confidence in the long-term development of the GBA, and hold a more optimistic estimation of the prospects of the market situation in China than in other countries, the report said, as quoted by Guangdong online news hub Southcn.com.
The survey report shows that the business activities of companies in the GBA saw a significant recovery last year, while most companies expect that the recovery trend will continue this year.
According to the survey results, the sales of manufacturing enterprises in the region increased by 1.7 per cent in 2021, and are expected to increase by 2.7 per cent this year.
Also, the surveyed manufacturers reported an average increase of 1.7 per cent in order volume in 2021, while a 2.8 per cent increase is estimated for the order amount in 2022, with some 56 per cent of enterprises expecting an average increase of 9.3 per cent in the number of orders this year.
Some 64 per cent of manufacturers believe that the GBA will “bring new business opportunities” to companies in the next three to five years, the report noted.
Meanwhile, the report pointed out that there are still some factors impacting the manufacturers’ confidence about the future prospects, including the poor performance of small and medium-sized enterprises, repeated pandemic outbreaks, rising costs and wages, and sluggish investment willingness.
The operating situation for small and medium-sized enterprises is still very difficult, and the statistics of business indicators for SMEs last year significantly lagged behind large enterprises, the report said.
Also, the report indicated that some manufacturing companies in the GBA are planning to shift part of their production from China to overseas countries, with some 16 per cent of survey respondents saying that they will choose to “relocate production capacity outside of China” as a countermeasure against inflation.
At the same time, Vietnam ranks 1st in terms of the most popular destination for companies to shift their production.