Vietnam’s manufacturing sector saw growth slow sharply in April 2026, as rising input costs weighed on demand and pushed new orders into contraction, according to S&P Global April Purchasing Managers’ Index (PMI).
The PMIfell to 50.5 in April from 51.2 in March, marking a seven-month low and signalling only marginal improvement in business conditions.
New orders declined for the first time in eight months, with firms citing higher prices and transport costs as key factors, while new export orders fell for a second consecutive month.
Output continued to expand for a twelfth straight month, but growth slowed to a ten-month low as firms relied on existing work amid weaker incoming demand.
Cost pressures intensified, with input prices rising at the fastest pace in 15 years, driven by higher fuel, oil, and transportation costs linked to disruptions in the Middle East.
Manufacturers passed these increases on to customers, with output prices also rising at the fastest rate since April 2011.
In response to softer demand, firms reduced employment, purchasing activity, and inventories, while supplier delivery times lengthened sharply due to logistics constraints and raw material shortages.
Business sentiment weakened to a seven-month low, with firms citing ongoing uncertainty tied to global supply disruptions, although expectations for output over the next year remained positive.