HSBC Vietnam for the first time announced the Manufacturing Purchasing Managers’ Index (PMI) in Vietnam – an early indication of manufacturing sector operating conditions in the country, in Ho Chi Minh City on May 8.

PMIs are essential data for economic analysts, financial market players and other decision makers such as central banks that require early indicators of changing market conditions when setting interest rates.

The HSBC Vietnam Manufacturing PMI is based on data compiled from monthly replies to questionnaires sent to purchasing executives in around 400 manufacturing companies. It is a composite index based on five individual indexes: new orders, output, employment, suppliers’ delivery times, and stock of items purchased. Readings above 50.0 signal an increase in business activity on the previous month while readings below 50.0 show a reduction in activity.

According to the survey, Vietnam ’s PMI in April 2012 was a t 49.5, down from 50.0 in March, that signals an overall worsening of business conditions during the month.
However, manufacturers reported an overall increase in new business levels for the first time since November, 2011. Stronger export demand was the primary source of growth in April, as highlighted by a third successive monthly improvement in new business intakes from abroad. Moreover, data pointed to the fastest overall increase in Vietnamese manufacturing new export orders since the survey began in April, 2011.
According to the HSBC forecast, Vietnam will achieve a GDP growth of 5.1 percent in 2012, its consumer price index will be 7.2 percent, its year-end interest rate will be 10 percent and the VND/USD exchange rate will be 21,500 VND.

CEO of HSBC Vietnam Sumit Dutta said Vietnam is one of the world’s fastest-developing economies and the country maintains its strong growth based on its educational and infrastructural developments and systematic reforms.

“PMI survey data in the manufacturing industries provide a timely and useful insight into producers’ developments. We believe investors will use this index to make optimal strategic decisions,” said Sumit Dutta.-VNA