A return to growth of new orders in May helped the Vietnamese manufacturing sector to expand midway through the second quarter of 2026, according to a report released by S&P Global on June 1.
At least part of the increase was due to safety stock building at customers due to the war in the Middle East causing steep price rises and supply-chain delays.
Similarly, stockpiling efforts also encouraged manufacturers to raise their own purchasing activity.
The S&P Global Vietnam Manufacturing Purchasing Managers' Index™ (PMI®) rose to 52.8 in May, up from 50.5 in April and reaching its highest since February, just before the outbreak of the war in the Middle East. The solid overall improvement in business conditions was the eleventh in as many months.
After having fallen modestly in April, new orders returned to growth in May, increasing markedly and to the largest degree in three months. To some extent, the rise in new business reflected safety stock building among customers amid worries of the effects of a prolonged conflict in the Middle East.
A renewed increase in new export orders was also recorded, ending a two-month sequence of decline. Here though, the pace of expansion was only marginal, as high transportation costs and logistics issues limited international demand.
Renewed growth of new orders was matched by a marked expansion of manufacturing production in May. Output rose for the thirteenth successive month, and at the fastest pace since February.
Stockpiling efforts were also evident among manufacturers as purchasing activity increased for the first time in three months, and at a solid pace.
Google translate