HCMC – Vietnamese manufacturers continued to experience growth in output and new orders in August, but at a slower pace than in the previous month.
The S&P Global Vietnam Manufacturing Purchasing Managers’ Index (PMI) fell to 52.4 in August from 54.7 in July, signaling a solid yet decelerated improvement in business conditions.
This report marked the fifth consecutive month of strengthening operating conditions in Vietnam’s manufacturing sector. The slower growth in output and new orders followed near-record expansions in prior months, suggesting stabilization rather than decline in demand.
Andrew Harker, economics director at S&P Global Market Intelligence, acknowledged the slower growth but emphasized the sector’s ongoing strength. “The increases in June and July were hard to sustain, but the rates of expansion remained significant, so there is little cause for concern.”
New orders continued to rise both domestically and internationally, with some manufacturers attributing this growth to stable prices, which helped attract new business. New export orders increased for the fifth consecutive month.
However, Harker pointed out a concern regarding employment, which declined for the first time in three months. Firms cited resignations and the end of temporary contracts as primary reasons for the workforce reduction. This drop in employment occurred even as new business increased, leading to a continued build-up of backlogs.
Inflationary pressures eased in August, with both input costs and output prices rising at the slowest rate in four months. While some manufacturers faced higher raw material costs, competitive pressures and lower oil prices helped moderate overall inflation.
