Vietnam’s manufacturing sector returned to growth in July.
The S&P Global Manufacturing PMI rose to 52.4—its highest level in nearly a year—up from 48.9 in June, according to a press release from the firm→view source.
Key details:
- New orders. Expanded for the first time in four months, supporting output growth.
- Production. Rose for the third consecutive month, at the fastest pace in 11 months.
- Exports. Continued to decline due to U.S. tariffs. Overseas orders have now shrunk for nine straight months.
- Employment. Remained close to stabilising, though still slightly in decline.
- Raw materials. Supply shortages led to longer delivery times and rising input costs.
- Inflation. Input cost inflation reached a seven-month high, pushing up output prices.
- Sentiment. Business confidence dipped to a three-month low on concerns over trade tensions.
Vietnam’s domestic manufacturing demand is improving. However, persistent U.S. tariffs are pressuring export performance.
Supply chain disruptions and inflation risks remain significant obstacles.
See also: Manufacturing in Vietnam 2025: Growth, Options & Other Key Considerations