Vietnam Manufacturing PMI August 2023

In August 2023, the S&P Global Vietnam Manufacturing PMI increased to 50.5, up from 48.7 the previous month. This marks the first uptick in factory activity since February, with output, new orders, and foreign sales all expanding. Additionally, purchasing activity saw its first rise in six months, reaching levels not seen since September 2022.

However, employment continued its downward trend for the sixth consecutive month, although the rate of decline was the slowest in this sequence. Backlogs of work also decreased for the eighth straight month. Despite increased demand for inputs, delivery times shortened for the eighth consecutive month, as suppliers maintained sufficient stocks to handle orders.

On the cost side, input prices saw a solid increase, ending a three-month decline due to rising prices of both oil and food. Furthermore, there was a rise in charges, marking the first increase since March. Lastly, sentiment improved to a five-month high but remained below the series average due to lingering concerns about demand strength.