VIETNAM MANUFACTURING PMI STAYS ABOVE 50, LIFTING OUTLOOK FOR 2026

An employee works at a feed mill - PHOTO: DAT THANH

HCMC – Vietnam’s manufacturing sector ended 2025 on a positive note, with business conditions improving for a sixth consecutive month, reinforcing growth expectations for 2026, according to the latest Purchasing Managers’ Index (PMI) released by S&P Global on January 2.

The PMI for December stood at 53.0, down slightly from 53.8 in November but remaining firmly above the 50-point threshold that separates expansion from contraction. The reading signals sustained growth momentum in the manufacturing sector.

However, the report also highlighted mounting cost pressures. Input prices rose at their fastest pace since June 2022, driven mainly by shortages of raw materials and unfavorable exchange rate movements.

Commenting on the overall trend, Andrew Harker, economics director at S&P Global Market Intelligence, said Vietnam’s manufacturing sector closed a volatile year with encouraging signals. Output and new orders continued to rise, while business confidence reached a 21-month high. Based on these developments, S&P Global forecasts Vietnam’s industrial output to grow by 6.7% in 2026.

Survey data for December showed manufacturing output expanding for the eighth consecutive month, though at a slower pace than in November. Growth was supported by improved weather conditions and a fourth straight month of rising new orders, reflecting stronger domestic demand. In contrast, new export orders declined after three months of growth, partly limiting the overall expansion.

Higher production needs led to a third consecutive monthly increase in employment, although job growth remained modest. Workforce expansion, combined with smoother operating conditions, helped reduce backlogs after two months of accumulation.

Supply chain disruptions persisted, reflecting the lingering effects of storms and flooding earlier in the year. Damage to raw materials during transportation and supplier delays continued to lengthen delivery times, although delays eased slightly from the record levels seen in November.

Cost pressures intensified further in December. Input costs surged at the sharpest rate since mid-2022, while output prices also rose significantly, well above the 2025 average. Despite this, manufacturers increased purchasing activity at the fastest pace in 16 months to meet orders and production plans. Input inventories continued to rise, while stocks of finished goods fell sharply as products were delivered more quickly to customers.

Despite higher costs and ongoing risks, sentiment remained positive. Business confidence improved for the third straight month, reaching its highest level since March 2024. Nearly half of surveyed firms expect output to increase in 2026, supported by stronger demand, new product launches and capacity expansion plans.

Source: The Saigon Times

Related News

INFRASTRUCTURE / CONSTRUCTION / LOGISTIC / PORT

VIỆT NAM-CAMBODIA TRADE GATHERS PACE TOWARDS $20 BILLION TARGET

Trade between Việt Nam and Cambodia continues to grow, remaining a bright spot and a key pillar of bilateral cooperation as the two countries aim to raise two-way trade to US$20 billion in the coming years. After setting a record of more than $11.3 billion last year, bilateral trade reached about $8.7 billion in the first eight months of this year, up 8.3 per cent year on year.

Oct 14, 2026

TECHNOLOGY

AI BEGINNING TO RESHAPE RECRUITMENT CRITERIA

Digital literacy is the only capability area in which fresh graduates meet employers’ expectations, according to a new report. Yet, it is also the standard rising fastest, as businesses increasingly expect new hires to use AI effectively in the workplace. Some 83 per cent of employers say AI has changed, or is beginning to change, their hiring criteria, while 94 per cent report higher expectations for digital and AI capabilities than they had two to three years ago.

Oct 14, 2026

INFRASTRUCTURE / CONSTRUCTION / LOGISTIC / PORT

ĐÀ NẴNG GREEN-LIGHTS US$105 MILLION THAI DEVELOPMENT DEAL

The central city has approved an investment proposal by Thailand’s WHA Group to develop infrastructure for the 400ha WHA Đà Nẵng Industrial Park project on two communes of Thăng Bình and Đồng Dương, with an investment of more than VNĐ2.7 trillion (US$105 million). The city said it approved WHA Industrial Development International's status as an investor in the project, which is expected to take place between 2027 and 2034.

Oct 14, 2026

VIETNAM ECONOMY INVESTMENT

MOBILE PHONE EXPORTS RISE 20% TO $51.8 BILLION IN FIRST NINE MONTHS

Exports of mobile phones and components rose 20 per cent year-on-year to nearly US$51.8 billion in the first nine months of 2026, with China, the US and Republic of Korea accounting for more than half of the total. Shipments to the three markets reached a combined $26.18 billion, or 50.6 per cent of total exports of the product group during the period, according to data from the Vietnam Department of Customs under the Ministry of Finance.

Oct 14, 2026

VIETNAM ECONOMY INVESTMENT

FRUIT AND VEGETABLE EXPORTS POISED TO HIT $10 BILLION IN 2026

Fruit and vegetable exports are on track to reach nearly US$10 billion in 2026, after rising 19.9 per cent year on year to nearly US$7.4 billion in the first nine months, driven by strong seasonal demand and abundant tropical fruit supplies. The Ministry of Agriculture and Environment said the growth reflected stronger international demand for fresh produce and processed agricultural products.

Oct 14, 2026

GARMENT / TEXTILE

TEXTILE EXPORTS FACE DUAL CHALLENGES OF SUSTAINING ORDERS AND BOOSTING EFFICIENCY AMID GROWING COMPETITION

Data shows that the textile and garment sector maintained its growth momentum in the first nine months of this year. The industry's total export turnover reached an estimated US$35.721 billion in the first nine months of this year, up 3.3 per cent year-on-year. Despite posting encouraging export figures, Vietnamese textile and garment enterprises continue to navigate unpredictable market variables.

Oct 14, 2026