Vietnam Manufacturing Growth Hits 6-Month High

The S&P Global Vietnam Manufacturing PMI rose to 53.3 in August 2026 from 52.9 in July, marking its highest level since February and signaling a further strengthening of factory activity. Manufacturing output expanded for a sixteenth consecutive month and at its fastest pace in more than two years. In addition, new orders grew at the strongest rate since October 2025, reflecting robust demand conditions. Meanwhile, employment declined for the fifth time in the past six months, as firms cited retirements and a reduced reliance on temporary workers. On the price front, input cost inflation eased from July's eleven-month high, while output price growth also moderated, extending a four-month trend of softer selling-price inflation. Business sentiment remained positive, though confidence eased slightly from July. Manufacturers remained optimistic about the outlook, supported by new product launches, capacity expansions, and expectations of stronger customer demand.

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.