Vietnam’s Purchasing Managers’ Index (PMI) hit 50.5 points in March, up slightly compared to February (49.2 points) and exceeded the 50-point threshold for the first time after 4 months. This signals improvements in business conditions by the end of the first quarter of 2025.
In a report released on March 3, S&P Global noted that the muted start to 2025 for the Vietnamese manufacturing sector continued into February, with weak demand leading to further reductions in new orders and production.
The S&P Global Vietnam Manufacturing Purchasing Managers' Index (PMI) dipped below the 50.0 no-change mark for the first time in three months during December 2024, to be at 49.8 from 50.8 in November.
The S&P Global Vietnam Manufacturing PMI rose to 51.2 in October from 47.3 in September, marking a return above the 50-point threshold after disruptions caused by Typhoon Yagi.
Given the 10-month performance, authorities believed Vietnam's economic growth is likely to surpass this year’s target, and more efforts are being taken to tackle bottlenecks to growth.
The Vietnamese manufacturing sector in October started to recover from the effects of September's Typhoon Yagi, recording renewed increases in both output and new orders, according to S&P Global.
The Hong Kong-Shanghai Banking Corporation (HSBC) has raised its 2024 GDP growth forecast for Vietnam to 7% from 6.5% on stronger-than-expected growth in Q3 despite the devastation left by Super Typhoon Yagi.
The Indonesian Textile Association (API) has blamed the stagnation of the textile industry for increasing influx of imports that negatively affect the local manufacturing.
Vietnam’s manufacturing sector expanded sharply at the end of the second quarter with new orders rising at one of the fastest rates on record, prompting firms to ramp up production and purchasing activity, according to S&P Global.
Experts from the World Bank (WB) have recommended Vietnam continue support for aggregate demand through capital expenditures, given that the reduction of interest rates to aid investment could intensify pressures on the exchange rate amidst the strong USD.
Singapore-based United Overseas Bank (UOB) has projected the economic growth rate of Vietnam at 6% for the whole 2024 on increasing chip-making demand, the recovery of Chinese and regional economies, as well as ongoing supply shifts.
