Ho Chi Minh City (VNA) – Vietnam’s manufacturing sector continued to grow in September, although rates of expansion in output and new orders eased from those seen in August, according to the Vietnam Manufacturing Purchasing Managers’ Index (PMI) report released by S&P Global on October 1.
The report showed that the Vietnam Manufacturing PMI fell to 51.9 in September from 53.3 in August, indicating a smaller improvement in the health of the sector at the end of the third quarter. Nonetheless, business conditions have strenghtened in each of the past 15 months.
A further marked rise in manufacturing production was registered in September, continuing the sequence of expansion which began in May 2025. However, the rate of growth eased from that seen in August.
Panellists reported that higher new orders were behind the latest increase in output, but the pace of expansion slowed.
Where new orders increased, panellists reported improving market conditions and customers expanding their order volumes. There were again reports of weakness in international demand, however, resulting in a second successive fall in new export orders. New business from abroad decreased solidly, and at the fastest pace since April. Backlogs of work were broadly unchanged in September, after having risen in each of the previous two months.
A further marked increase in purchasing activity was recorded in September as firms secured inputs to help support output growth. The use of materials in the production process meant that stocks of inputs continued to fall.
Manufacturers also expressed a desire to draw down holdings of finished products, and used the prompt shipment of goods to customers to achieve this.
In fact, stocks of finished goods decreased at the sharpest pace since the survey began in March 2011. Suppliers' delivery times lengthened modestly, meanwhile, with panellists linking delays to issues with international shipping and poor weather conditions.
International issues were also central to a further rise in input costs as the war in the Middle East caused higher prices for fuel and oil. Increased transportation costs were also reported.
The rate of input price inflation was marked and slightly faster than in August, albeit still among the lowest over the past year.
Andrew Harker, Economics Director at S&P Global Market Intelligence said that while Vietnamese manufacturing sector remained in growth territory in September, data showed that the international environment limited the pace of expansion.
New export orders were down, the war in the Middle East caused further rises in the cost of fuel and oil, and international shipping delays contributed to longer supplier delivery times.
Despite these headwinds, production continued to rise markedly, and firms were more optimistic in the outlook for the coming year, Harker said.
“Based on the historical relationship between the PMI and official data, the manufacturing sector should continue to make a solid contribution to GDP growth in the third quarter of 2026, with the potential for growth to strengthen further should the international environment improve,” he continued./.
