Vietnam's Manufacturing Activity Rises to 53.3 in September, Topping ASEAN
The reading put Vietnam on the top among ASEAN peers, leaving the runners-up far behind.
|Vietnam's PMI topped ASEAN in September.|
The headline Nikkei Vietnam Manufacturing Purchasing Managers' Index (PMI) went up in September, driven by faster rises in output, new orders and employment on the back of stronger customer demand.
The country’s indicator of manufacturing performance strengthened to 53.3 in September, from 51.8 in August. A reading above the neutral mark of 50 indicates expansion, while one below 50 points toward contraction.
The reading put Vietnam on the top among ASEAN peers, leaving the runners-up far behind with their indicators standing below 51.
“The reading signaled a solid monthly strengthening of business conditions, with the rate of improvement the most marked since April. The health of the sector has now strengthened in 22 consecutive months,” said the report released on Monday morning.
Customer demand improved over the month, resulting in a sharp and accelerated increase in new business, the most marked in five months. The rate of expansion in new export orders also quickened in September.
Manufacturing output increased for the eleventh successive month, with the latest rise the most marked since April. All three broad sectors saw production increase, led by consumer goods firms.
Higher new orders, and a subsequent rise in production requirements, encouraged firms to increase their purchasing activity at the end of the third quarter. The rate of expansion was solid, and the fastest since April.
Manufacturers remained optimistic that output will increase over the coming year, with positive sentiment linked to predictions of new order growth and business expansion plans, the report noted.
“The third quarter of the year ended on a positive note for Vietnamese manufacturers as improving client demand breathed fresh life into the sector. New orders rose markedly, feeding through to faster expansion of output, employment and purchasing activity. Manufacturers are, therefore, well placed to record further growth during the final quarter,” said Andrew Harker, associate director at IHS Markit, which compiles the survey.
"A cautionary note, though, is signaled by a reemergence of inflationary pressures. Cost inflation was the strongest in over six years amid pressure on the supply of raw materials," he added.
Tuan Minh / BizLIVE