7-9-2023 (HANOI) Vietnam’s manufacturing sector exhibited signs of recovery in August, with renewed growth in new orders and production, according to a report by S&P Global Market Intelligence.
For the first time in four months, input costs increased, and the report noted the first signs of selling price inflation since March, as reported by local newspaper Vietnam News.
The S&P Global Vietnam Manufacturing Purchasing Managers’ Index (PMI) moved above the 50.0 no-change mark in August for the first time in six months, rising from 48.7 in July to 50.5. This indicates a marginal monthly improvement in business conditions within the sector.
Manufacturers experienced the first increase in new orders in six months, with new export business also on the rise after five consecutive months of decline.
Andrew Harker, Economics Director at S&P Global Market Intelligence, commented on the report, stating, “The latest S&P Global Vietnam Manufacturing PMI paints a more encouraging picture regarding the health of the sector than had been the case in recent months, with output, new orders, exports, and purchasing all returning to growth. Improvements were generally still quite muted, however, as demand conditions remained fragile. It is probably too early to say, therefore, that the sector is in full recovery mode.”
Firms responded to higher new orders and increased output requirements by expanding their purchasing activities at a solid pace. This expansion marked the first in six months and was the most significant since September 2022, according to the report.
