Vietnam’s Manufacturing PMI rose to 49.8 in May from 45.6 in April, remaining below the 50 threshold that signals contraction, according to the latest data from S&P Global.
New export orders fell sharply for the second straight month, linked to the impact of US tariffs on demand. However, output returned to growth as tariff policy appeared more stable than in April.
Key points in the press release include:
- New orders declined again, though at a slower pace than April.
- Export demand dropped more steeply than total orders, with firms citing continued tariff uncertainty.
- Production rose, helped by greater policy clarity and capacity improvements.
- Input costs fell for the first time in nearly two years, with suppliers offering discounts amid muted demand.
- Selling prices dropped for the fifth consecutive month as manufacturers sought to stimulate orders.
- Employment edged down, reflecting weaker demand and voluntary staff turnover.
- Inventories of inputs and finished goods were reduced, as firms avoided overstocking.
- Supplier delivery times worsened slightly, mostly due to traffic delays rather than supply shocks.
Vietnam’s manufacturing sector is stabilising after April’s sharp drop, but persistent weakness in exports highlights ongoing vulnerability to trade policy shifts, especially from the US. The decline in input and output prices may ease pressure on firms, but confidence remains subdued as global demand stays weak.
For a regional comparison, the Philippines’ PMI in May was 50.1 down from 53 in April. Conversely, Indonesia’s PMI stood at 47.4 in May, up from 46.7 in April.
See also: Manufacturing in Vietnam 2025: Growth, Options & Other Key Considerations