Vietnam manufacturing activity continues improving in February: S&P Global
The Vietnamese manufacturing sector continued to grow marginally in February, with both output and new orders up for the second month running, according to a S&P Global survey.
The Vietnam Manufacturing Purchasing Managers' Index (PMI) posted 50.4 in February, up fractionally from 50.3 in January and above the 50.0 no-change mark for the second consecutive month.

Inside a Samsung factory in Vietnam. Photo courtesy of Thanh Nien (Young People) newspaper.
New orders increased modestly for two straight months, with some survey respondents linking higher total new business to improved new orders from abroad. The rate of growth in new export orders slowed, however, and was only marginal, it noted.
Output also expanded for the second consecutive month in February. The latest rise was modest and broadly in line with that seen in January. Production increased in the consumer and investment goods sectors, but the intermediate goods category saw a reduction.
Higher new orders encouraged manufacturers to expand their staffing levels for the first time in four months, and to the greatest extent in a year.
With employment up and new order growth remaining relatively muted, firms were able to deplete backlogs of work for the first time in three months.
Manufacturers also opted to use up stocks of purchased inputs in February as opposed to buying new items. Purchasing activity decreased marginally for the fourth month running, while the latest fall in stocks of inputs was the most pronounced since June 2021.
Production expansion plans and work on new products contributed to a jump in business confidence midway through the first quarter, with positive sentiment regarding output also reflecting expected new order growth. Confidence reached a one-year high as close to 55% of respondents expressed optimism.
“Vietnamese manufacturers were able to build on the return to growth seen in January with a further expansion in February. Particularly positive elements of the latest PMI survey were renewed job creation and the strongest business confidence for a year,” said Andrew Harker, economics director at S&P Global Market Intelligence.
“Manufacturers will need to see stronger and sustained growth of new business before they can be confident enough to invest in inputs and start to raise their selling prices more in line with their own cost burdens,” Harker anticipated.
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