FX.co ★ Vietnam Manufacturing Growth Moderates in August

In August 2025, the S&P Global Vietnam Manufacturing PMI recorded a slight dip to 50.4, down from 52.4 in July, indicating only a modest enhancement in business conditions and a deceleration compared to July's robust recovery. For the fourth month in a row, production saw an uptick, albeit at a reduced pace, as new orders declined following a momentary resurgence in July. Export demand remained frail, experiencing a tenth consecutive month of decline due to enduring US tariffs, compounded by tepid domestic demand exerting additional strain. In response to shrinking order volumes, companies continued to cut back on employment for the eleventh successive month, resulting in a more pronounced decrease in work backlogs. Concurrently, shortages in raw materials and a reduction in imports extended delivery times, causing input costs to rise at their fastest rate this year. This situation necessitated a modest increase in output prices. Nonetheless, business sentiment demonstrated improvement, with confidence reaching a six-month high, buoyed by optimism for more stable tariffs and an anticipated increase in demand to support growth in the future.