Vietnam's PMI sees solid expansion

The Vietnam Manufacturing Purchasing Managers’ Index (PMI) – a composite single-figure indicator of manufacturing performance – was posted at 52.6 in July, up slightly from 52.2 in June and signalling a further improvement in business conditions in the manufacturing sector.

The health of the Vietnamese manufacturing sector improved solidly again in July. (Photo: VNA)

The information was released in a report announced by Nikkei and Markit Economics on August 3.

According to the report, the health of the Vietnamese manufacturing sector improved solidly again in July, with faster growth in both output and new orders recorded.

With production requirements increasing, firms upped their staffing levels and purchasing activity. The health of the sector has grown stronger in each of the past 23 months.

Supporting the stronger improvement in business conditions were sharper expansions in output, new orders and employment.

Total new business increased solidly as a result of greater customer demand. On the other hand, new export orders decreased for the second successive month.

Growth of total new orders led manufacturers to raise production, extending the current sequence of expansion to 22 months. The pace of increase in output during July was solid and faster than in the previous month.

Some firms reported having made efforts to reduce outstanding business in July, with others mentioning spare capacity. As a result, backlogs decreased for the second month running.

Meanwhile, the prompt delivery of products to customers contributed to a marginal reduction in stocks of finished goods.

(Source: nhandan.org.vn)