Vietnam’s manufacturers see optimistic outlook despite low February PMI
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.
Electronic meter production line in Central Power Corporation's Electronic Measurement Equipment Manufacturing Center (EVNCPC EMEC). (Photo: VNA)
Hanoi (VNS/VNA) - The S&P Global Vietnam Manufacturing ꦛPurchasing Managers' Index (PMI) was below the 50.0 no-change mark for the third consecutive month in February, despite rising slightly to 49.2 from 48.9 in January.
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.
As a result, firms scaled back employment again. On the price front, the pace of input cost inflation eased to a 19-month low and charges were reduced for the second month running.
After falling for the first time in four months during January, new orders decreased again in February. The rate of contraction was modest but quickened to the fastest since last September.
Muted export demand was highlighted by a further solid decline in new business from abroad, the fourth reduction in as many months.
Bucking the wider trends across the sector during February, purchasing activity increased slightly. In some cases, rising input buying reflected confidence in the upcoming path of manufacturing output.
Another factor behind the rise in purchasing activity seen in February was a desire to make sure materials were secured amid uncertainty around availability and supply-chain delays.
Business confidence strengthened for the second month in a row to the highest since June last year.
Andrew Harker, Economics Director at S&P Global Market Intelligence, said: "Firms were increasingly optimistic about the future path of output, although confidence was often based on hopes that economic conditions will be stable in the months ahead.
"Transportation issues were a key headwind for the sector in February, with respondents citing problems with the speed and availability of freight, as well as higher costs.
"Firms hope to see an alleviation of these supply-side constraints, alongside demand improvements, as the year progresses."
In contrast to the rise in input costs, manufacturers lowered their selling prices for the second consecutive month in response to a weak demand environment. The fall was slight but faster than in January./.
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 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.
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.
The North-South Expressway project is scheduled for completion by 2030, aiming to establish the groundwork for Vietnam’s modern railway industry and stimulate regional economic development, positioning the country for a significant economic leap in the era of national rise.
The probe, initiated on June 11 following a petition by the US Coalition for Fair Trade in Hardwood Plywood, targets products classified under HS Code 4412 and 9403 imported from China, Indonesia and Vietnam.
Sun PhuQuoc Airways was born as a perfect piece in Sun Group’s strategic vision to build a premium ecosystem of tourism, entertainment, real estate, and aviation. With a pioneering ambition, Sun PhuQuoc Airways is not just an airline, but a symbol of connection – bringing the world to Phu Quoc and taking Phu Quoc to the world.
A key change in the draft decree is a provision requiring bank transfers for gold transactions valued at 20 million VND (765 USD) and above, to enhance transparency and verify customer identities.
In the first four months of 2025, trade turnover between Vietnam and Cambodia surpassed 3 billion USD, marking a 7% increase compared to the same period in 2024.
On June 19 alone, a total of 2,005 trucks completed customs clearance at Lang Son’s border gates — the highest single-day figure ever recorded in the province. Of these, 634 carried exports and 1,371 imports.
The OECD Economic Surveys: Vietnam 2025 report focuses on analysing the country’s macroeconomic fundamentals, the impact of international integration on attracting foreign investment and trade, and the country’s prospects for developing a low-carbon economy.
Antoine Colin, Senior Vice President for Global Supply Chain Digital Transformation & Resilience at HP Inc., affirmed HP’s strategic commitment to building a supply chain and ecosystem in Vietnam and the region.
Deputy Director General of the Ministry of Industry and Trade (MoIT)’s Trade Promotion Agency Bui Quang Hung emphasised that logistics has evolved from a technical function into a core capability for Vietnamese exporters to maintain their competitive advantage in the US market.
A trade official has suggested companies work closely with shipping lines, airlines, and freight forwarders to monitor routes, transit times, and potential surcharges while exploring broader cargo insurance to cover risks like war and terrorism.
In addition to institutional reform, the agency is also rolling out key solution groups to combat counterfeit goods, imitations, and intellectual property infringements in the digital environment.
The event, co-organised by the Vietnam Trade Office in the UK and TT Meridian, a local importer of Vietnamese fresh produce, aims to build a national lychee brand and encourage broader recognition of Vietnamese fruits in a competitive, high-end market.
The industry's performance has been powered by bold investments in modern production lines, enabling Vietnamese firms to produce complicated products which were exclusive to advanced economies.
Outcomes of ABAC III will shape ABAC’s final policy recommendations to be submitted to the ABAC-APEC leaders’ dialogue, scheduled to take place in the Republic of Korea this November.
This is the second year the magazine has released the ranking, which is based on total revenue and key financial indicators of enterprises from seven countries in the region: Vietnam, Indonesia, Thailand, Malaysia, Singapore, the Philippines, and Cambodia.
At the summit, publishing, tech, and media sectors will discuss emerging trends, business models, and sustainable solutions for digital publishing development in Vietnam.
This year’s “Vietnam Goods Week” marks a significant milestone as it is being held simultaneously for the first time in four locations across Asia: Japan, Hong Kong (China), Cambodia, and Malaysia, from June 19 - 22.
