S&P Global: Viet Nam’s business confidence hits 21-month peak
VGP - Business confidence in Viet Nam’s manufacturing sector climbed to a 21-month high, capping 2025 with sustained expansion, according to the latest S&P Global Viet Nam Manufacturing Purchasing Managers' Index (PMI).
Released on January 2, the report showed the manufacturing PMI for December 2025 reached 53 points—its highest reading since March 2024. Although slightly lower than November's 53.8, the index stayed well above the 50-point mark, signaling a solid improvement in overall industry health.
Production growth continued for the eighth straight month, supported by favorable weather conditions and ongoing momentum in new orders. While growth remained strong, the pace eased to its slowest level in three months.
New orders expanded for a fourth consecutive month as customer demand strengthened. However, total demand faced pressure as new export orders declined for the first time in three months, partly slowing the overall growth rate compared to November.
Outlook brightens for 2026
Manufacturers' optimism continued to build heading into 2026. Business confidence rose for a third month in a row, again reaching its highest level since March 2024. Nearly half of surveyed firms expect output to increase over the next 12 months, driven by improving domestic demand, new product launches, expanded production capacity, and investment in facility upgrades.
Mr. Andrew Harker, Economics Director at S&P Global Market Intelligence, commented that the sector ended "a turbulent year on a positive note," with continued gains in output, new business, and sentiment. He added that manufacturers are entering 2026 with strong momentum, highlighting expectations for new contracts and capacity expansion.
S&P Global Market Intelligence forecasts Viet Nam's industrial production to grow 6.7 percent in 2026, while overall industrial output is projected to increase 6.7 percent, aligned with the report's outlook for continued recovery and expansion.
In November last year, Viet Nam's PMI stood at 53.8, slightly below October’s 54.5 but still well above the 50-point threshold, signalling continued improvement in business conditions in Viet Nam despite weather-related supply disruptions./.
