Vietnam’s PMI April 2025

According to the latest report by S&P Global Market Intelligence, Vietnam’s manufacturing sector Purchasing Manager’s Index (PMI) reached 45.6 in April, below the 50-point threshold that separates growth from contraction.

According to a press release from S&P Global, this environment has also led to a drop in business confidence, reaching its lowest point in nearly four years, as manufacturers expressed growing concerns about the potential impact of tariffs on future production.

In April, the US tariffs pushed Vietnam’s manufacturing sector into a downturn, with companies experiencing notable declines in new orders, exports, and output. Apprehension about further disruption from potential additional tariffs has further weighed on business sentiment, which is now among the weakest on record. 

Employment in the sector declined for the seventh consecutive month, with April seeing the most significant job reductions since late 2021. Purchasing activity and inventories also dropped. Although input costs rose slightly, firms continued to reduce their selling prices, marking the fourth straight month of price cuts.

The Association of Southeast Asian Nations (ASEAN) is a political and economic union of ten members, has 667 million people and a territory of 4.5 million Km2; is currently the third largest economy in Asia-Pacific and the fifth largest in the World. The ASEAN Economic Community (AEC) has a combined GDP of USD 4.2 trillion, according to estimates for 2024.