July data pointed to a strengthening of growth momentum in the Vietnamese manufacturing sector, with sharper increases in output, new orders, exports and purchasing being recorded, while employment rose for the first time in five months, according to a report released by S&P Global on August 3.
Firms were helped by a further easing of inflationary pressures, with input costs and output prices each rising at the slowest rates in 10 months. Supply-chain delays were also less pronounced.
The S&P Global Vietnam Manufacturing Purchasing Managers' Index™ (PMI®) rose to 52.9 in July, up from 51.8 in June and signalling a solid monthly improvement in the health of the sector.
Business conditions have now strengthened in 13 consecutive months, with the latest improvement the most pronounced since February.
Manufacturing production increased sharply in July, with the rate of expansion quickening to a five-month high. Output has now risen continuously on a monthly basis since May 2025.
Firms often linked higher output to an increase in new orders. New business expanded for the third month running in July, and at a faster pace than in June. Total new sales were supported by a solid increase in new export orders, which rose at the sharpest rate since July 2024.
