Want to be in the loop?
subscribe to
our notification
Business News
MANUFACTURING SEES MODEST UPTICK IN JANUARY
Vietnam’s manufacturing sector displayed signs of improvement in January 2024, ending a five-month falling streak, as the S&P Global Manufacturing Purchasing Managers’ Index (PMI) rose to 50.3 from December’s 48.9.
The resurgence was primarily driven by expansions in new orders and production, propelled by a modest rise in total new business. Both domestic and export markets exhibited signs of recovery, prompting firms to increase production volumes, with intermediate goods producers experiencing the most significant upturn.
“It was an encouraging start to 2024 for the Vietnamese manufacturing sector, with some welcome improvements in new orders and production,” said Andrew Harker, economics director at S&P Global Market Intelligence.
Despite this positive momentum, staffing levels and purchasing activity remained stable. Backlogs of work continued to accumulate for the second consecutive month, with the rate of accumulation being the most pronounced since March 2022.
Challenges in the global supply chain affected inventory levels, leading to decreased post-production and pre-production inventories. Shipping delays and transportation issues contributed to an increase in suppliers’ delivery times, marking the first deterioration in vendor performance in over a year.
Higher shipping costs and transportation challenges also led to a notable increase in input prices for Vietnamese manufacturers. In an effort to stimulate demand, firms reduced their selling prices, ending a five-month sequence of inflation.
Although overall confidence persisted, the outlook for the year ahead dropped to a seven-month low. Economic conditions emerged as a concern for some manufacturers, indicating a cautious approach amid ongoing global challenges.
There were various reports of issues with transportation and shipping in January, resulting in delivery delays and higher costs. Firms lowered their own selling prices, however, which suggests that demand conditions remain relatively muted, Harker said.
The S&P Global Vietnam Manufacturing PMI is compiled based on responses from around 400 manufacturers and is a key indicator of the sector’s performance, with a reading above 50 indicating growth and below 50 signifying a decrease compared to the previous month.
Source: The Saigon Times
Related News
MPI TO AMEND DECREE 35 ON THE IMPLEMENTATION OF PPP REGULATIONS
Deputy Prime Minister Tran Hong Ha has permitted the Ministry of Planning and Investment (MPI) to draft amendments and supplements to Decree No.35/2021/ND-CP, which provide guidance for the implementation of the Law on Public-Private Partnership Investment.
BA RIA-VUNG TAU PROVINCE RANKS FIRST IN FOREIGN INVESTMENT CAPITAL
Statistics published by the Foreign Investment Agency under the Ministry of Planning and Investment showed that between January and April, Ba Ria-Vung Tau lured $1.52 billion in overseas funding, equalling 16.4 per cent of the total foreign investment in the whole country.
INFOGRAPHIC SOCIAL-ECONOMIC SITUATION IN THE APRIL AND FOUR MONTHS OF 2024
The monthly statistical data presents current economic and social statistics on a variety of subjects illustrating crucial economic trends and developments, including production of agriculture, forestry and fishery, business registration situation, investment, government revenues and expenditures, trade, prices, transport and tourism and so on.
KEY DRIVER GAINS A MUST FOR GROWTH
Only slight order number improvements and enterprise confidence sentiment mean it may be difficult for the country to hit its desired growth goals this year.According to the World Bank’s biannual economic update report released last week, it is expected that the Vietnamese economy may grow by 5.5 per cent this year and 6 per cent next year, making it among top growth leaders in the world.
TEXTILE AND GARMENT BUSINESSES FACE DIFFICULTIES DUE TO LACK OF DOMESTIC SUPPLY
Infrastructure for weaving, dyeing and fabric production is still limited, and there is no spatial planning for development and centralised wastewater treatment, said Nguyễn Thị Tuyết Mai, Deputy General Secretary of the Việt Nam Textile and Apparel Association (Vitas).
ADDED VALUE OF INDUSTRIAL SECTOR UP 6.18 PER CENT IN Q1
Vietnam’s industrial sector posted significant growth in the first quarter of 2024, of an estimated 6.18 per cent compared to the first quarter of 2023. In particular, manufacturing and processing saw robust growth of 6.98 per cent.