Vietnam’s PMI May 2025

According to the latest report by S&P Global Market Intelligence, Vietnam’s manufacturing sector Purchasing Manager’s Index (PMI) reached 49.8 in May, below the 50-point threshold that separates growth from contraction.

New export orders declined for the second consecutive month, largely influenced by the effects of US tariffs on demand. However, output returned to growth as tariff policies became more stable compared to April.

New orders continued to fall, but the pace of decline slowed down. Export demand dropped more significantly than overall orders, with ongoing tariff uncertainty cited as a key factor.

Production improved, supported by clearer policy direction and better capacity. For the first time in nearly two years, input costs decreased, as suppliers offered discounts amid subdued demand. At the same time, selling prices fell for the fifth month in a row, as manufacturers aimed to encourage more orders.

Employment slightly decreased, reflecting weaker demand and some voluntary staff turnover. Both input and finished goods inventories were reduced as companies sought to avoid overstocking.

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.