Vietnam Manufacturing Growth Moderates

The S&P Global Vietnam Manufacturing PMI fell to 52.5 in January 2025 from 53 in December, marking its lowest level since September 2024. Despite the moderation, it remained in positive territory for the seventh straight month, as output expanded at a faster pace, driven largely by stronger new orders amid improving customer demand. Total new business growth was supported by a rebound in new export orders, with companies reporting increased demand from other Asian markets, including India. Moreover, employment rose for the fourth month in a row. While job creation remained modest, the pace accelerated to its fastest since June 2024. On the price front, input cost inflation eased slightly from the three-and-a-half-year high seen in December, while selling prices continued to climb rapidly, reaching its fastest pace since April 2022. Looking ahead, business sentiment strengthened further, with the twelve-month production outlook hitting its highest level since March 2024.

The S&P Global Vietnam Manufacturing PMI eased to 53.0 in December 2025 from 53.8 in November, signaling a modest slowdown in growth momentum. Output rose for the eighth straight month, supported by continued growth in new orders, although the pace of expansion in both production and new business softened compared with November, partly reflecting lingering supply disruptions from recent storms and flooding. Employment also increased, as firms expanded staffing levels to support higher output and reduce backlogs of work. On the pricing front, input costs surged at the fastest pace since June 2022 amid material scarcity and unfavourable exchange rate movements, while output prices increased solidly as manufacturers passed higher costs on to customers. Business sentiment strengthened further, reaching its highest level since March 2024, underpinned by expectations of stronger demand, improved weather conditions, and increased production capacity.

The S&P Global Vietnam Manufacturing PMI fell to 53.8 in November 2025, from a fifteen-month high of 54.5 in the previous month. Still, the latest reading signaled the fifth consecutive month of expansion and the second-strongest pace in the sequence, as output rose for the seventh straight month amid growth in new orders. However, the pace of expansion in both output and new business moderated, as adverse weather conditions constrained production activity. This severe weather also disrupted supply chains and hindered manufacturers’ ability to complete orders on schedule. On the pricing front, input costs surged to its highest level since July 2024, while output prices remained elevated as manufacturers passed higher input costs onto customers. Finally, overall business sentiment reached a seventeen-month high, underpinned by expectations of renewed growth in new orders and optimism for more favorable weather conditions in the coming months.