Vietnam’s manufacturers see optimistic outlook despite low February PMI
In a report released on March 3, S&P Global noted that the muted start to 2025 for the Vietnamese manufacturing sector continued into February, with weak demand leading to further reductions in new orders and production.
Electronic meter production line in Central Power Corporation's Electronic Measurement Equipment Manufacturing Center (EVNCPC EMEC). (Photo: VNA)
Hanoi (VNS/VNA) - The S&P Global Vietnam Manufac🥂turing Purchasing Managers' Index (PဣMI) was below the 50.0 no-change mark for the third consecutive month in February, despite rising slightly to 49.2 from 48.9 in January.
In a report released on March 3, S&P Global noted that the muted start to 2025 for the Vietnamese manufacturing sector continued into February, with weak demand leading to further reductions in new orders and production.
As a result, firms scaled back employment again. On the price front, the pace of input cost inflation eased to a 19-month low and charges were reduced for the second month running.
After falling for the first time in four months during January, new orders decreased again in February. The rate of contraction was modest but quickened to the fastest since last September.
Muted export demand was highlighted by a further solid decline in new business from abroad, the fourth reduction in as many months.
Bucking the wider trends across the sector during February, purchasing activity increased slightly. In some cases, rising input buying reflected confidence in the upcoming path of manufacturing output.
Another factor behind the rise in purchasing activity seen in February was a desire to make sure materials were secured amid uncertainty around availability and supply-chain delays.
Business confidence strengthened for the second month in a row to the highest since June last year.
Andrew Harker, Economics Director at S&P Global Market Intelligence, said: "Firms were increasingly optimistic about the future path of output, although confidence was often based on hopes that economic conditions will be stable in the months ahead.
"Transportation issues were a key headwind for the sector in February, with respondents citing problems with the speed and availability of freight, as well as higher costs.
"Firms hope to see an alleviation of these supply-side constraints, alongside demand improvements, as the year progresses."
In contrast to the rise in input costs, manufacturers lowered their selling prices for the second consecutive month in response to a weak demand environment. The fall was slight but faster than in January./.
The S&P Global Vietnam Manufacturing Purchasing Managers' Index (PMI) dipped below the 50.0 no-change mark for the first time in three months during December 2024, to be at 49.8 from 50.8 in November.
The Vietnamese manufacturing sector in October started to recover from the effects of September's Typhoon Yagi, recording renewed increases in both output and new orders, according to S&P Global.
Vietnam’s manufacturing sector expanded sharply at the end of the second quarter with new orders rising at one of the fastest rates on record, prompting firms to ramp up production and purchasing activity, according to S&P Global.
Party General Secretary To Lam’s upcoming state visit to the Republic of Korea (RoK) is expected to mark a new milestone in the bilateral relationship, creating fresh momentum for trade and investment cooperation between the two countries.
In the context of the growing global digital economy, digital transformation and the promotion of e-commerce are key drivers helping Vietnam boost integration, enhance competitiveness, and expand export markets, according to the Vietnam E-commerce and Digital Economy Agency
Tilapia is considered highly competitive in export markets thanks to its affordability, ease of processing, and appeal across both high-end and mass-market segments.
In the first seven months of the year, Phu Tho attracted an impressive 651.7 million USD in foreign direct investment, including 35 newly licensed projects totaling 119 million USD in registered capital and 45 existing projects with an additional capital of 533 million USD.
Under the agreements, VinEnergo will invest in, install, and operate 43 MWp of rooftop solar power capacity and 45 MWh of BESS capacity across the three plants.
Under a draft to amend and supplement the Government's Decree 125/2020/ND-CP on administrative sanctions for violations of tax and invoice regulations, the Ministry of Finance has proposed classifying the failure to issue invoices into five different levels. Infraction levels will correspond to fines of 1 million VND to 80 million VND, depending on the nature and number of invoicing violations.
A new airline developed and invested by Sun Group — has officially announced a strategic partnership with Amadeus IT Group (Amadeus), one of the world’s leading travel technology companies. This agreement not only lays the foundation for a modern digital infrastructure but also marks a pivotal step in SPA’s global expansion strategy, enabling the airline to access international distribution networks and reach customers worldwide.
Of the total, 107,700 were new firms, with combined registered capital of 928.4 trillion VND (35.4 billion USD), up 10.6% in number and 5.5% in capital compared with the same period last year.
Experts agree that a combination of technology, enforcement, education and cross-border cooperation is essential to protect copyrighted content in Vietnam’s growing digital ecosystem.
Poland is Vietnam’s largest export market in Central and Eastern Europe, with key staples including seafood, textiles, footwear, coffee, and cashew nuts.
Cashless payments are growing at an impressive rate, averaging 30–40% annually. Vietnam’s per capita cashless transaction volume now trails only China, with total value of 295.2 quadrillion VND (11.26 trillion USD), or 26 times of its GDP.
A draft resolution on piloting a digital asset and cryptocurrency market is being developed, aiming to create a broad-enough regulatory sandbox that enables investor participation and provides practical grounds for policy refinement in areas such as risk management and anti-money laundering.
Viettel was ranked third for overall mobile performance with a score of 82.56 just behind UEA’s e& (88.05) and Quatar’s Ooredoo (87.05) and ahead of Singapore’s Singtel (82.53). Vinaphone took second in 5G speed with a score of 78.11, trailing only behind e&.
PM Chinh proposed MUFG work closely with the Ministry of Finance to improve legal frameworks and support the establishment and operation of the international financial centre in Da Nang and Ho Chi Minh City.
