The resurgence was primarily driven by expansions in new orders and production, propelled by a modest rise in total new business. Both domestic and export markets exhibited signs of recovery, prompting firms to increase production volumes, with intermediate goods producers experiencing the most significant upturn.
The overall improvement in business conditions was centered on renewed expansions in new orders and production. The rise in total new business was the first in three months amid signs of demand recovering in both domestic and export markets (new export orders also expanded for the first time since last October).
Some firms opted to satisfy orders by distributing finished goods to customers. As a result, post-production inventories decreased following no change at the end of 2023.
Confidence in the year ahead outlook for production dropped to a seven-month low and was below the series average as some firms expressed worries about economic conditions. Manufacturers remained optimistic overall, however, amid hopes of improvements in demand and customer numbers, plus the planned launch of new products.
The S&P Global Vietnam Manufacturing PMI is compiled based on responses from around 400 manufacturers and is a key indicator of the sector’s performance, with a reading above 50 indicating growth and below 50 signifying a decrease compared to the previous month./.
