The manufacturing sector in Vietnam showed a notable rebound in October, entering expansion territory, as per the latest survey conducted by S&P Global and released on Friday, which reported a manufacturing PMI of 51.2. This is a significant rise from September's figure of 47.3 and surpasses the critical threshold of 50, indicating a shift from contraction to expansion.
Key factors driving the renewed vigor in the sector's health included a return to growth in both production and new orders, as the recovery from the impact of Typhoon Yagi commenced. However, the pace of this expansion was somewhat restrained compared to the months preceding September, with some companies still experiencing disruptions caused by the storm and subsequent flooding.
In addition to the increase in overall new business, new export orders saw a rise in October. Nonetheless, the expansion rate remained modest, partly due to reports of tepid international demand.
