HÀ NỘI Business activity in the first quarter of 2026 remained broadly stable but showed clear divergence across sectors, according to a survey by the National Statistics Office. Rising input costs and weak market demand continue to weigh on enterprises, with nearly half calling for lower lending interest rates to ease financial pressure.

The survey covered 19,907 enterprises across 34 provinces and cities, with a response rate of 97.4 per cent. Results show that 68.8 per cent of businesses reported their operations in the first quarter were either better or unchanged compared with the fourth quarter of 2025. Among them, 20.5 per cent said conditions had improved while 48.3 per cent described their situation as stable. Meanwhile, 31.2 per cent said business conditions had worsened.

Compared with the previous quarter, however, businesses have become more cautious. The share of firms reporting improvement declined by 4.9 percentage points, while the proportion describing conditions as stable fell by 2.1 percentage points. At the same time, the percentage of enterprises reporting greater difficulties rose by seven percentage points, suggesting that the recovery remains fragile.

Nearly 47 per cent of enterprises proposed that the Government and relevant ministries introduce measures to lower lending interest rates in order to reduce input cost pressures.

By sector, trade and services remained the most optimistic area. About 77.9 per cent of businesses in the sector reported improved or stable operations, including 21.1 per cent reporting improvement and 56.8 per cent stability. Only 22.1 per cent said conditions had become more difficult.

Manufacturing and processing industries also maintained relatively stable performance, with 69.9 per cent of enterprises reporting improved or stable operations. However, 30.1 per cent still faced difficulties, indicating that pressures on the key production sector have not fully eased.

Construction remained the most challenging sector. Only 55.6 per cent of enterprises reported improved or stable operations, while 44.4 per cent said conditions had worsened compared with the previous quarter, reflecting the strong impact of rising material costs and market challenges.

Foreign-invested enterprises showed the highest level of optimism, with 71.7 per cent reporting improved or stable performance. The corresponding figures for State-owned enterprises and domestic private firms were 69.5 per cent and 68.3 per cent respectively, indicating that challenges are broadly shared across the business community.

Rising prices of raw materials, fuel and logistics services remain the most significant challenge. As many as 56.1 per cent of enterprises identified increasing input costs as their main difficulty, a sharp rise compared with previous quarters.

On the demand side, the slow recovery of domestic consumption continues to affect business activity. About 50.4 per cent of enterprises said weak market demand directly impacted their operations, a figure that has remained largely unchanged from the previous quarter.

The construction sector has been particularly affected, with 70.1 per cent of firms reporting difficulties due to higher material prices. In response to these challenges, enterprises have put forward several policy recommendations. Lower lending interest rates emerged as the most common proposal, supported by 46.8 per cent of surveyed businesses. More than half of respondents, or 54.8 per cent, called for policies to stabilise prices of raw materials and service costs, while 33.5 per cent recommended measures to ensure stable supply for production.

Regarding fiscal policy, 37.5 per cent of enterprises suggested adjusting taxes, fees and other financial obligations to better match current economic conditions, while 19.9 per cent proposed reducing land rental fees to ease cost burdens. The recommendations reflect not only immediate concerns but also expectations for longer-term policies that can enhance competitiveness and help enterprises adapt to an increasingly uncertain economic environment. VNS