Vietnam’s manufacturing sector strengthened sharply in October, with the S&P Global Vietnam Manufacturing PMI rising to 54.5, up from 50.4 in September — its highest level since July 2024.
The surge reflected sharp and accelerated increases in output and new orders, along with renewed job creation and a rise in input purchases.
Employment expanded for the first time in over a year, while business confidence reached a 16-month high, signalling improved optimism about future production.
Export orders also rose slightly for the first time in 12 months, contributing to overall demand growth.
Backlogs of work increased at the fastest pace in more than three years, partly due to storm-related disruptions.
Firms ramped up purchasing to support production, leading to the first accumulation of input stocks in over two years.
However, inflationary pressures intensified. Input cost inflation reached its highest level since July 2024, with 27 percent of firms citing higher raw material prices and supply shortages.
This led to the fastest rise in selling prices since June 2022.
Andrew Harker, Economics Director at S&P Global Market Intelligence, said the sector “moved up a gear” in October, with stronger growth in output and orders. He cautioned, however, that “inflationary pressures built again… customers are happy to look through price increases for now, but this may start to wane should rates of inflation pick up further.”