Vietnam manufacturing growth eases in October as export orders fall
The Vietnamese manufacturing sector continued expansion in October although price increases and supply issues limited growth in some cases
Vietnam's manufacturing sector saw a slight easing in growth during October, with new export orders declining and rising production costs weighing on the industry. The S&P Global Vietnam Manufacturing Purchasing Managers Index rose to 52.3 points, a modest improvement from the 51.9 points recorded in September. This marks the 16th consecutive month of business conditions improvement.
While total new business grew for the sixth month straight, new export orders fell, limiting overall growth. Manufacturing output expanded, but at its slowest rate in a six-month period. Transportation delays, caused by raw material shortages and poor weather, contributed to the slowdown. Inflation accelerated for the second month in a row, with rising fuel prices and production difficulties driving input prices up.
Employment decreased slightly, but firms managed to reduce backlogs due to efficient processing. Despite optimism about raw material availability and market conditions, the outlook for production growth remains cautious, with sentiment reaching an eight-month high but still weaker than pre-war levels.
Written by urgent.news from Vietnam Investment Review's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
Also reported by 1 other outlet
- Manufacturing PMI eases to 54.7 in October despite strong export demand business-standard.com
