November data reveals sustained growth in Vietnam’s manufacturing sector. Production, new orders, and employment continued to rise, despite disruptions caused by severe storms impacting supply chains and manufacturers’ ability to meet deadlines.
Supply issues stemming from the storms also contributed to inflationary pressures, with input costs surging and companies subsequently raising selling prices.
The S&P Global Vietnam Manufacturing Purchasing Managers’ Index™ (PMI®) registered 53.8 in November, slightly down from October’s 54.5 but still signaling robust improvement in business conditions. Manufacturing conditions have now strengthened for five consecutive months.
A third successive monthly rise in new orders fueled continued production growth in November, though the rates of increase for both output and new orders eased from October.
Meanwhile, new export orders grew at a faster pace, reaching a 15-month high.
Survey respondents noted improved demand from Mainland China and India. Some companies reported that stormy weather in November constrained production growth, though output still rose for the seventh month running. Severe weather primarily affected supply chains and manufacturers’ ability to complete work on time. Supplier delivery times lengthened markedly, reaching the highest since May 2022.
Meanwhile, companies recorded a second consecutive monthly rise in backlogs of work. Moreover, the rate of increase was the fastest since March 2022. Outstanding workloads rose despite employment increasing for the second month running as firms sought to meet higher production requirements. Staffing levels rose only modestly but still at the greatest extent in nearly a year and a half. According to respondents, new hires were typically employed on a full-time basis.
In some cases, manufacturers used existing inventories to fulfill orders, leading to a further depletion of finished goods stocks—a more pronounced decline than in the previous survey period.
Another storm-related impact was the upward pressure on raw material costs due to supply constraints. Input prices rose sharply, with the rate of inflation the second-fastest since July 2024, though easing from October.
Output price inflation slowed in November but remained strong as companies passed on higher input costs to clients.
Companies increased purchasing activity for the fifth month running in November as output requirements rose. Furthermore, the rate of expansion quickened to a four-month high. Stocks of purchases also rose, increasing for the second month in a row.
However, the rise was only slight as input materials were generally used in production. Expectations of higher new orders and hopes for milder weather supported optimism about output prospects over the coming year. Nearly half of respondents forecast higher production, with overall business sentiment reaching a 17-month high.
Andrew Harker, Economics Director at S&P Global Market Intelligence, commented:
“The strong growth seen in October was largely maintained in November, as Vietnam’s manufacturing sector appears to be ending the year on a positive note.
While the rates of increase in output and new orders eased, companies took on staff at a quicker pace to address workloads. Growth was recorded despite supply chain and production line disruptions caused by stormy weather in recent weeks.
As such, there is potential for growth to continue in the months ahead as companies catch up on delayed projects.”
– 08:10 01/12/2025
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