Vietnam Manufacturing Expands Most in 5 Months

The S&P Global Vietnam Manufacturing PMI rose to 52.9 in July 2026 from 51.8 in June, marking the strongest expansion since February. Output and new orders accelerated, supported by stronger domestic and foreign demand, with export sales rising at the fastest pace since July 2024. Manufacturers also ramped up purchasing activity at the sharpest rate in almost four-and-a-half years to meet higher production requirements, while employment increased for the first time in five months. Meanwhile, input inventories and finished goods stocks declined as firms used existing inventories to support production and fulfill orders. Supply-chain disruptions eased further, with supplier delivery delays the least pronounced since May 2025. Input cost and output price inflation both slowed to their weakest rates since September 2025, while business confidence climbed to a five-month high, supported by expectations of stronger orders and expanded production capacity.

The S&P Global Vietnam Manufacturing PMI eased to 51.8 in June 2026 from a three-month high of 52.8 in May but remained above the 50 threshold, marking a twelfth consecutive month of improving business conditions. New orders rose for a second straight month, while export sales also expanded despite a slower pace of growth. Manufacturing output rose for a fourteenth consecutive month and accelerated to its fastest pace since February, prompting firms to increase purchasing activity for a second month. However, input inventories fell at the sharpest rate in a year as supply-chain disruptions and import challenges persisted, although supplier delivery delays eased to a four-month low. Input cost inflation slowed to its weakest since the start of the year, with output price inflation also easing to a six-month low. Employment declined for a fourth straight month, while business confidence strengthened to a four-month high, though optimism remained below pre-Middle East conflict levels.

The S&P Global Vietnam Manufacturing PMI jumped to 52.8 in May 2026, picking up from a seven-month low of 50.5 in the previous month. It marked the highest reading since February, mainly due to a renewed increase in new orders, which expanded at the fastest pace in three months as customers built precautionary inventories amid concerns over a prolonged conflict in the Middle East. The recovery in demand was accompanied by a thirteenth consecutive month of output growth, with production expanding at the quickest pace since February. Meanwhile, input cost inflation quickened to its highest level since April 2011, driven mainly by higher fuel, oil, and transportation expenses. In response, output price inflation was among the strongest seen in the past fifteen years, although the pace of increase eased slightly from April. Looking ahead, business confidence remained relatively subdued, as firms remained wary of the potential long-term repercussions of the conflict in the Middle East.