FX.co ★ Vietnam Factory Activity Returns to Growth

The S&P Global Vietnam Manufacturing PMI experienced an uptick to 50.5 in March 2025, ascending from 49.2 recorded in February. This increase marks the first notable expansion in manufacturing activity since November 2024. The primary contributing factor was a rising production rate, achieving the fastest growth since August 2024 after a three-month stagnation. Although new orders showed a modest return to growth, international demand continued to exhibit weakness. On the flip side, employment levels saw a decline for the sixth consecutive month, primarily due to persistent weak demand and ongoing staff resignations. Regarding pricing, input prices rose in March due to heightened costs for certain imported goods, although some suppliers opted to lower their prices amid tepid demand for inputs. Overall, sentiment was positive, supported by an increase in new orders and expectations for stable demand. However, optimism remained below the average for the series, indicating a cautious outlook.