Việt Nam’s manufacturing sector remained in expansion in September, with the S&P Global Manufacturing Purchasing Managers’ Index at 51.9. Although the index eased from 53.3 in August, it remained above the 50-point threshold separating expansion from contraction. Business conditions have now improved for 15 consecutive months, while manufacturing output continued to rise markedly at the end of the third quarter.
Higher new orders supported the increase in production, although the pace of new-business growth slowed and new export orders declined for a second consecutive month. Manufacturers continued to increase purchasing activity to support production, while stocks of finished goods fell at the fastest rate since the survey began in 2011 as companies shipped goods to customers and reduced inventories. Suppliers’ delivery times lengthened modestly, with international shipping disruption and adverse weather cited as contributing factors.
Cost pressures remained visible, particularly from higher fuel, oil and transport costs, but the rate of output-price inflation continued to ease as competition constrained manufacturers’ ability to pass higher costs on to customers. Despite these external pressures, business expectations improved: confidence in future output reached its highest level since February, supported by expectations of stronger market conditions and planned product launches. The survey therefore points to continued manufacturing growth, while also highlighting risks relevant to international supply chains, especially weaker export demand, shipping delays and energy-related cost pressure. For foreign suppliers and buyers, the combination of continued production growth and elevated purchasing activity indicates sustained industrial demand even as external conditions remain uneven.