According to the Vietnam Manufacturing Purchasing Managers' Index (PMI) report in February 2025, business confidence increased for the second consecutive month...
On the morning of March 3, 2025, S&P Global announced the Vietnam Manufacturing Purchasing Managers' Index (PMI) report for February 2025.
 |
| Industrial production activities - Illustration photo |
S&P Global's report noted that the Vietnam manufacturing PMI in February 2025 was below the 50-point threshold for the third consecutive month, although it increased slightly to 49.2 points compared to 48.9 points in January 2025. This index result reflects a slight deterioration in business conditions during the month.
Panellists reported weak demand in both domestic and international markets. Weak customer demand led to further declines in new orders and output. As a result, firms continued to cut employment. On the price front, the rate of input cost inflation slowed to a 19-month low and output prices fell for the second month running.
However, bucking the overall trend in manufacturing in February, purchasing activity increased slightly. In some cases, the increase in input purchases reflected confidence in the future path of manufacturing output.
In fact, business confidence rose for the second month running to its highest level since June last year. Firms hope that stabilizing economic conditions will support improved new orders and thus output growth.
“Another factor driving the increase in purchasing activity in February was the desire to secure raw materials amid uncertainty about availability and supply chain delays,” the report said.
Supplier delivery times have lengthened, continuing a string of declines in vendor performance that began in September 2024, S&P Global said in a report. Moreover, the lengthening of delivery times during this period was the most significant in five months.
Along with reporting shortages of transport, firms also reported rising transport costs. Higher raw material prices pushed input costs up again in February. However, the rate of cost increase was the weakest in the current 19-month streak and below the historical average.
In contrast to rising input costs, manufacturers cut their selling prices for the second month in a row amid weak demand. The decline was modest but faster than in January.
Manufacturers in Vietnam continued to report weak demand in February, and the industry has struggled to gain momentum in 2025 so far, said Andrew Harker, chief economist at S&P Global Market Intelligence.
On a more positive note, firms are increasingly optimistic about future output trends, although business confidence is often based on hopes that economic conditions will stabilize in the coming months.
| Transport issues were the main obstacle for manufacturing in February, with respondents citing issues with shipping speed and availability of goods as well as higher costs. Firms will be hoping these supply-side constraints will ease and demand will improve in the coming months. |
Source: https://congthuong.vn/pmi-thang-22025-niem-tin-kinh-doanh-tai-viet-nam-tang-376488.html
Comment (0)