Vietnam Manufacturing PMI September 2023

In September 2023, the S&P Global Vietnam Manufacturing PMI dropped to 49.7, down from 50.5 the previous month. This marked the seventh instance of declining factory activity this year. Production slightly decreased following a rise in August, with six of the last seven months experiencing a decline in production. Additionally, employment continued to decline for the seventh consecutive month, with the rate of decrease being the sharpest since June.

Meanwhile, both new orders and procurement levels showed growth for the second consecutive month, and the expansion rate of new sales from abroad was solid and more pronounced compared to August. Lead times shortened for the ninth consecutive month, albeit at a slower rate since April.

On the cost front, input prices experienced the most significant increase in seven months, attributed to rising fuel costs and higher prices for oil and imported raw materials. Consequently, output prices continued to rise, although at a modest pace.

Lastly, confidence in the manufacturing sector strengthened for the fourth month in a row, reaching its highest level since February. This improvement in sentiment was based on expectations of receiving new orders.