Vietnam’s manufacturing sector extended its recovery in February, with the headline Purchasing Managers’ Index rising to 54.3 from 52.5 in January, signalling a solid improvement in business conditions, according to a press release from S&P Global.
The reading marked a four-month high and the eighth consecutive month of strengthening operating conditions.
Production increased at the fastest pace in 19 months, supported by stronger customer demand and the preparation of goods ahead of delivery.
New orders rose for a sixth straight month and at the quickest rate since October, although new export business was unchanged amid reported instability in international markets.
Rising order volumes drove further increases in employment and purchasing activity, with staffing levels expanding at the fastest pace since September 2022, albeit partly through temporary hires.
Input buying rose at the second-sharpest rate in a year-and-a-half, while stocks of purchases increased marginally after declining in January.
Stronger demand for inputs enabled suppliers to lift charges, pushing input cost inflation to its steepest level since June 2022.
Manufacturers passed on higher operating expenses to customers, with output price inflation remaining at the elevated level recorded at the start of 2026.
Suppliers’ delivery times lengthened modestly, with some firms citing customs delays for imported goods.
Business confidence improved for a fifth consecutive month, reaching its highest level since September 2022 as firms anticipated further output gains over the coming year.
See also: Manufacturing in Vietnam: Growth, Options & Other Key Considerations