Manufacturing: Vietnam PMI slows in August on weaker new orders
The S&P Global Vietnam Manufacturing PMI eased to 50.4 in August, down from 52.4 in July, signalling only marginal improvement in business conditions → view source.
Key details:
- Output: Expanded for the fourth consecutive month, though growth slowed compared with July.
- New orders: Fell after July’s rebound, driven by a solid drop in exports, marking the tenth straight month of contraction.
- Employment: Declined for the eleventh month running as spare capacity remained.
- Input costs: Rose at the fastest pace in 2025 so far, linked to material shortages, tariffs, and higher transport costs.
- Output prices: Increased for the third month in a row as firms passed on higher costs to customers.
- Confidence: Improved to a six-month high, with firms expecting demand to recover, though optimism stayed below the long-run average.
Vietnam’s manufacturing sector is balancing steady output gains with weaker demand, especially from overseas markets hit by U.S. tariffs.
While higher input costs and job cuts highlight pressure points, business confidence suggests expectations of recovery later in 2025.
