Vietnam factory activity returns to growth on new orders: S&P
The Vietnamese manufacturing sector returned to growth in April as a solid expansion of new orders fed through to a renewed increase in production, according to S&P Global.
The Vietnam Manufacturing Purchasing Managers' Index (PMI) rose back above the 50.0 no-change mark in April, posting 50.3 from 49.9 in March, marking a marginal improvement in the health of the sector for the third time in the past four months.

The main positive from the latest survey was a rebound in new orders, which increased solidly following a fractional decline in the previous month. New export orders also returned to growth, but the latest rise was only marginal and softer than that seen for total new business.
A second successive monthly reduction in selling prices amid efforts to price competitively and respond to requests from clients for discounts also helped manufacturers register a rise in new orders.
Despite the pick-up in new orders and output in April, firms scaled back employment for the first time in three months due to recent muted demand conditions.
Purchasing activity increased for the first time in six months in response to higher new orders, but the rate of expansion was only slight amid a reluctance among firms to hold inventories.

Workers at a Luxshare-ICT factory in Vietnam-Singapore Industrial Park in Nghe An province, central Vietnam. Photo courtesy of Nghe An newspaper.
Recent market instability led to a drop in confidence, with sentiment down to a three-month low. That said, hopes for a more stable and positive demand environment in the months ahead supported optimism that output will increase over the coming year.
“There was a welcome return to growth of new orders in the Vietnamese manufacturing sector during April following recent weakness. More generally, the recent up and down nature of new order inflows was a concern for firms looking forward. We will hopefully see a more stable environment in the months ahead, helping manufacturers to plan production and resourcing effectively,” said Andrew Harker, economics director at S&P Global Market Intelligence.
Vietnamese government data showed that the country’s index of industrial production (IIP) remained on an upward trend in April, rising 0.8% month-on-month and 6.3% year-on-year. The index was up 6.0% in January-April.
In January-April, Vietnam posted an export revenue of $126.64 billion, up 15% year-on-year, and an import expenditure of $115.24 billion, up 15.4%, resulting in a trade surplus of $8.4 billion. The trade surplus was larger than the $7.66 billion recorded in the same period of 2023.
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