The Vietnamese manufacturing sector saw an improvement in growth momentum at the start of the final quarter of 2025, according to the latest report released by the S&P Global on November 3.
Sharp and accelerated increases in output and new orders were recorded, while employment expanded for the first time in just over a year. A renewed rise in stocks of purchases was also signalled, while business confidence hit a 16-month high.
Meanwhile, inflationary pressures also intensified, with both input costs and output prices increasing at sharper rates than in September.
However, the S&P Global Vietnam Manufacturing Purchasing Managers' Index (PMI) rose to 54.5 in October, up markedly from a reading of 50.4 in September and signalling a solid monthly improvement in the health of the sector. In fact, business conditions strengthened to the largest degree since July 2024.
All five of the constituent parts of the headline PMI contributed to the upwards movement in the October index. New orders increased for the second consecutive month, and at a sharp pace that was much stronger than seen in September. Moreover, the rate of expansion was the fastest since July 2024 as customer demand improved. New export orders contributed to growth of overall new business, rising for the first time in a year, albeit only slightly.
Manufacturers responded to higher new orders by ramping up production, which increased at the sharpest pace since July 2024. Output has now risen in each of the past six months.
As well as seeing sharper growth of production in the latest survey period, firms were also more optimistic regarding the 12-month outlook for output. Business sentiment strengthened to a 16-month high amid confidence that new orders will continue to rise and alongside plans to expand production capacity.
Google translate