Vietnam’s manufacturing Purchasing Managers Index (PMI) has seen its highest increase since September 2011. It rose to 50.5 in November from October’s 48.7, according to HSBC.
The anticipated manufacturing recovery is necessary, said Trinh Nguyen, an economic expert at HSBC. The expansion in manufacturing has been supported by stronger credit growth as well as the decrease in inflation, despite poor export demand. HSBC expects economic activities to recover gradually in the time to come, she added.
Better operating conditions reflected the return to growth in both output and increased orders during November. Output has seen the highest increase since September 2011, ending seven months of contraction. Despite the modest increase in new orders, the rate of expansion hasn’t been stronger since April 2011. Meanwhile, backlogs of work decreased for the 8th consecutive month, suggesting that manufacturing in Vietnam suffers little from pressure. A growing workforce also contributed to reduced backlog. The number of new jobs increased slightly from October, the most significant increase in the last year. Discount strategies increased the number of new orders in Vietnam ’s manufacturing sector.
The prices of factory merchandise decreased for the 7th consecutive month and at the fastest rate since August. Meanwhile average cost burdens continue to rise in November due to oil-related products.-VNA
The anticipated manufacturing recovery is necessary, said Trinh Nguyen, an economic expert at HSBC. The expansion in manufacturing has been supported by stronger credit growth as well as the decrease in inflation, despite poor export demand. HSBC expects economic activities to recover gradually in the time to come, she added.
Better operating conditions reflected the return to growth in both output and increased orders during November. Output has seen the highest increase since September 2011, ending seven months of contraction. Despite the modest increase in new orders, the rate of expansion hasn’t been stronger since April 2011. Meanwhile, backlogs of work decreased for the 8th consecutive month, suggesting that manufacturing in Vietnam suffers little from pressure. A growing workforce also contributed to reduced backlog. The number of new jobs increased slightly from October, the most significant increase in the last year. Discount strategies increased the number of new orders in Vietnam ’s manufacturing sector.
The prices of factory merchandise decreased for the 7th consecutive month and at the fastest rate since August. Meanwhile average cost burdens continue to rise in November due to oil-related products.-VNA
