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Vietnamese manufacturing bounces back

VGP - The Vietnamese manufacturing sector came back on track in March, reaching above 50.5 point, signaling an improvement in business conditions at the end of the first quarter of 2025, according to the S&P Global Viet Nam Manufacturing Index (PMI).

April 02, 2025 5:31 AM GMT+7

Specifically, PMI rose to 50.5 in March 2025 from 49.2 in the previous month, pointing to a slight strengthening in the health of the sector.

This marked the first expansion in factory activity since November 2024, primarily driven by an increase in production, which grew for the first time in three months and at the fastest pace since August 2024.

According to respondents, the rise in output in part reflected improvements in the availability of goods, but also a renewed increase in new orders, which likewise expanded following a two-month sequence of decline.

Andrew Harker, Economics Director at S&P Global Market Intelligence, said: "The Vietnamese manufacturing sector kicked into gear in March, seeing the first increases in output and new orders in 2025 so far. Firms will hopefully be able to build on these improvements in the months ahead.

"For now though, there is still a fair amount of caution among manufacturers, leading to a reluctance to hire additional staff or purchase extra inputs. This potentially reflects an uncertain international environment, with new export orders falling sharply during March."

Earler, Viet Nam's PMI edged lower to 48.9 points  in January before rising to 49.2 points in February, 2025./.