In August, Vietnam’s manufacturing PMI maintained its position above the 50-point mark, recording a positive result of 53.3 points.
As a result, Vietnam’s manufacturing Purchasing Managers’ Index (PMI) reached 53.3 points in August—up from 52.9 points in July—marking the 14th consecutive month it has remained above the 50-point threshold.
S&P Global assessed the improvement in manufacturing business conditions as the strongest and most notable since February.
According to surveyed businesses, growth in August was driven by several factors, including the development and launch of new products, more abundant supplies of raw materials, and eased price pressures.
These factors contributed to a significant rise in both new orders and production output during the month. Output increased for the sixteenth consecutive month, with the pace of growth accelerating to its fastest rate in over two years. Similarly, the rate of growth in new orders also quickened, marking the strongest expansion since last October.
Total new orders rose in August, even though new export orders declined amidst ongoing geopolitical uncertainty. Foreign orders fell for the first time in four months, though the decline was slight.
Job losses in the fifth month
Manufacturers also recorded a fifth consecutive month of job losses as workforce numbers declined. Nevertheless, higher output requirements prompted manufacturers to increase purchasing activity in August.
The rate of growth was strong but slowed to a three-month low. Purchased items were frequently channeled directly into production, causing stocks of purchases to decline further despite increased input buying; notably, this reduction in pre-production inventories was the most significant in five months.
Stocks of finished goods also declined in August as products were delivered to customers, marking the sharpest and fastest drop since April. Although supplier delivery times continued to lengthen, transportation difficulties were less severe.
(Source: S&P Global).
Rising oil prices continue to drive up the costs of derivatives such as fuel and plastics, as well as transportation expenses. However, the rate of input cost inflation has slowed to an 11-month low, falling slightly below the index’s historical average. Selling prices also rose at a slower pace, marking the fourth consecutive month of easing growth.
The launch of new products, increased capacity, and rising customer demand have bolstered manufacturers’ confidence that output will continue to grow over the coming year. However, business confidence has dipped slightly compared to July and remains, in some respects, below the levels recorded prior to the outbreak of the conflict in the Middle East.
According to Andrew Harker, Economics Director at S&P Global Market Intelligence, growth in Vietnam’s manufacturing sector began to strengthen in the third quarter.
By August, growth in output and new orders had not only regained the notable momentum seen earlier in the year but had also surpassed it. With price and supply pressures easing, manufacturers were able to take on new orders and meet demand by increasing production.
“This growth was achieved despite a still-gloomy employment picture, with the size of the workforce contracting again. At the same time, business confidence remains relatively low due to ongoing geopolitical uncertainty. This suggests that businesses may have boosted efficiency to increase production,” said Mr. Andrew Harker.
Vietnambiz | 03/09/2026
