The Purchasing Managers’ Index™ (PMI™) of Vietnam showed signs ofstrengthening during December, 2014, recording 52.7, up from 52.1 inNovember and the highest reading since April.
Growth has nowbeen registered for 16 months in a row. The upturn in operatingconditions stemmed primarily from strengthened growth in output and neworders.
Trinh Nguyen, Asia Economist at HSBC said that the demand for Vietnamese goods rose, both externally and domestically.
December’s survey showed a second successive monthly increase ininventories of input purchases, while there was also an increase instocks of finished goods.
Companies reported that delays in the delivery of completed goods led to a build-up of stock in warehouses.
The survey data also indicated that average input costs paid by Vietnamese manufacturers continued to fall.
Companies reported that supplier prices, shipping costs and the priceof fuel had all fallen when compared to November. Latest data showedthat average input prices declined to the greatest degree since July2012.
Faced with a reduction in their input costs, manufacturers chose to lower their average prices charged in December.
Competitive pressures and efforts to stimulate demand also led to thesharpest fall in output charges for a year -and-a-half.
Commenting on the Vietnam Manufacturing PMI™ survey, Nguyen saidVietnam's acceleration of manufacturing activity stands in sharpcontrast to decelerating momentum elsewhere.
She also believedthat the manufacturing sector will benefit from both wage costcompetitiveness and lower input prices, thanks to declining global brentcosts.-VNA
Growth has nowbeen registered for 16 months in a row. The upturn in operatingconditions stemmed primarily from strengthened growth in output and neworders.
Trinh Nguyen, Asia Economist at HSBC said that the demand for Vietnamese goods rose, both externally and domestically.
December’s survey showed a second successive monthly increase ininventories of input purchases, while there was also an increase instocks of finished goods.
Companies reported that delays in the delivery of completed goods led to a build-up of stock in warehouses.
The survey data also indicated that average input costs paid by Vietnamese manufacturers continued to fall.
Companies reported that supplier prices, shipping costs and the priceof fuel had all fallen when compared to November. Latest data showedthat average input prices declined to the greatest degree since July2012.
Faced with a reduction in their input costs, manufacturers chose to lower their average prices charged in December.
Competitive pressures and efforts to stimulate demand also led to thesharpest fall in output charges for a year -and-a-half.
Commenting on the Vietnam Manufacturing PMI™ survey, Nguyen saidVietnam's acceleration of manufacturing activity stands in sharpcontrast to decelerating momentum elsewhere.
She also believedthat the manufacturing sector will benefit from both wage costcompetitiveness and lower input prices, thanks to declining global brentcosts.-VNA
