Manufacturing output rose once more in December, extending the present growth section to eight months. While the tempo of development softened to a three-month low, companies cited improved climate circumstances and regular positive aspects in new orders as key drivers of upper manufacturing. (*50*) enterprise elevated for a fourth straight month, reflecting bettering buyer demand, though development moderated from November ranges, S&P Global stated in a press launch.
Export demand, nonetheless, remained a weak spot. (*50*) export orders declined for the primary time in three months, partially constraining general new enterprise development.
Vietnam’s manufacturing PMI eased to 53 in December from 53.8 in November however remained firmly in growth territory, marking six months of enchancment, in line with S&P Global.
Output, new orders and employment rose, supported by calmer climate and stronger demand, although export orders fell.
Supply disruptions pushed enter value inflation to a three-and-a-half-year excessive.
Higher output necessities prompted producers to develop staffing ranges, with employment rising for the third consecutive month. Increased workforce capability, mixed with calmer climate, helped companies scale back backlogs of labor for the primary time in three months.
Despite improved circumstances in December, the lingering influence of extreme storms and flooding earlier within the 12 months continued to weigh on provide chains. Material shortages remained widespread, resulting in a marked lengthening of suppliers’ supply occasions, near the three-and-a-half-year report seen in November.
Input value inflation accelerated sharply, reaching its quickest tempo since June 2022. Survey respondents attributed the rise to scarce uncooked supplies and unfavourable change charge actions. Output costs elevated solidly in response, with inflation working effectively above the 2025 common and broadly unchanged from November.
Purchasing exercise rose sharply as companies sought to safe supplies amid increased output necessities, with development accelerating to a 16-month excessive. Stocks of inputs elevated for the third consecutive month, whereas inventories of completed items fell as merchandise had been dispatched promptly to clients.
Looking forward, enterprise confidence strengthened additional, reaching its highest stage since March 2024. Nearly half of surveyed companies count on output to rise over the approaching 12 months, supported by bettering demand, new product launches and expanded manufacturing capability.
“The Vietnamese manufacturing sector ended a turbulent year on a positive note, with output and new orders rising solidly again and business confidence hitting a 21-month high. To some extent, firms were able to benefit from calmer weather conditions in December, expanding output and working through backlogged projects,” stated Andrew Harker, economics director at S&P Global Market Intelligence.
“The lingering effects of the recent storms and flooding were apparent in terms of material supply, however, with vendors’ delivery times lengthening markedly again and input cost inflation hitting a three-and-a-half-year high. The disruption to supply should hopefully begin to ease in the months ahead as firms find it easier to bring in raw materials,” added Harker. “Overall, the sector goes into 2026 in a positive position, with manufacturers optimistic of securing new business and being able to expand their production capacity. S&P Global Market Intelligence forecasts industrial production growth of 6.7 per cent in 2026.”
Fibre2Fashion News Desk (SG)