The S&P Global Vietnam Manufacturing Purchasing Managers' Index™ (PMI®) posted 53.8 in November, down slightly from 54.5 in October but still signalling a solid monthly improvement in business conditions in the manufacturing sector, according to a report released by the S&P Global on December 1.
Operating conditions have been now strengthened in five consecutive months.
A third successive monthly increase in new orders helped to drive production growth again in November, although rates of expansion in both output and new business eased from October.
New export orders, meanwhile, increased at a faster pace, with the rate of growth quickening to a 15-month high. Panellists noted improving demand from mainland China and India in particular.
Some firms reported that stormy weather conditions during November had limited production growth, but output nonetheless increased for the seventh month running.
The severe weather conditions mainly impacted supply chains and the ability of manufacturers to complete work on time.
Another impact of the storms was to contribute to higher costs for raw materials as supply was restricted. Input prices increased sharply, and at the second-fastest pace since July 2024, despite the pace of inflation easing from October.
The rate of output price inflation also softened in November, but remained solid as firms passed on higher input costs to their customers.
Firms increased their purchasing activity for the fifth month running in November as output requirements rose. Moreover, the rate of expansion quickened to a four-month high.
Stocks of inputs also increased, accumulating for the second successive month. The rise was only slight, however, as inputs were often used to support production.
Expected improvements in new orders and hopes for calmer weather conditions supported optimism in the year-ahead outlook for output. Close to half of respondents predicted a rise in production, with overall sentiment hitting a 17-month high.
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