The S&P Global Vietnam Manufacturing PMI decreased to 48.9 in June 2025, down from 49.8 in May, signaling a contraction for the third consecutive month. A notable decline was seen in new orders, particularly from international markets, as U.S. tariffs took their toll. The reduction in new export orders matched the rapid pace observed in both September 2021 and May 2023. Consequently, companies reduced their workforce numbers, although they successfully reduced existing backlogs. For the third month running, purchasing activity fell, and both input and finished goods inventories were significantly reduced, hitting the largest declines in nine and five months, respectively. Despite the decline in demand, production increased for the second consecutive month. On the pricing front, input costs climbed in June following a nearly two-year period of decreases, driven by material shortages and the depreciation of the dong against the US dollar. This led firms to increase their output prices, breaking a five-month streak of reductions. Lastly, business confidence continued to improve from April's 44-month low, supported by optimism over market stabilization and diminishing trade tensions.