Vietnam’s manufacturing sector ended 2025 in expansion, with output, new orders and employment rising in December despite renewed supply constraints and cost pressures, according to the latest Vietnam Manufacturing Purchasing Managers’ Index (PMI) data from S&P Global.
The PMI stood at 53.0 in December, easing from 53.8 in November but remaining above the 50 threshold that separates growth from contraction. This marked the sixth consecutive month of improving business conditions.
Manufacturers reported a solid increase in output, extending the current expansion to eight months, supported by higher new orders and more stable weather conditions. Employment rose for a third straight month as firms worked to reduce backlogs, which fell for the first time in three months.
Supply disruptions linked to earlier storms and flooding continued to affect material availability, leading to longer supplier delivery times. Input costs increased at the fastest pace since June 2022 due to material shortages and unfavourable exchange rate movements, pushing output prices higher.
Business confidence reached a 21-month high in December, with manufacturers optimistic about demand and capacity expansion in 2026. Industrial production growth is forecast at 6.7 per cent in the year ahead.