Vietnam’s manufacturing sector has expanded for a fifth straight month in November, though severe storms have disrupted supply chains and moderated the pace of growth, according to the S&P Global Vietnam Manufacturing Purchasing Managers’ Index.
The index came in at 53.8 in November, easing from 54.5 in October but still signalling improving operating conditions.
Output, new orders and employment were all up. Firms also reported a third consecutive monthly increase in new business and a quicker rise in export orders, driven by stronger demand from mainland China and India.
However, the report notes that storm damage has caused significant delivery delays, with suppliers’ delivery times lengthening to their worst level since May 2022.
Backlogs have grown for a second month, while finished-goods inventories have fallen as manufacturers draw down stocks to meet demand.
Input costs have surged on restricted supply, leading factories to lift selling prices. Purchasing activity has accelerated to a four-month high, and staffing has increased at the fastest rate in nearly 18 months.
Despite the disruption, business sentiment has strengthened, with almost half of surveyed firms expecting higher output over the coming year, the report notes.