The S&P Global Vietnam Manufacturing PMI rose to 52.8 in May 2026, up from 50.5 in April, when it had fallen to a seven-month low. This was the highest reading since February and was largely driven by a renewed rise in new orders, which grew at the fastest pace in three months as customers built precautionary inventories amid worries about a prolonged conflict in the Middle East.
Stronger demand supported a thirteenth straight month of output growth, with production expanding at its quickest rate since February. At the same time, input cost inflation accelerated to its highest level since April 2011, mainly reflecting increased fuel, oil, and transportation costs. In turn, output price inflation was among the strongest recorded over the past fifteen years, although the rate of increase eased slightly compared with April.
Looking ahead, business sentiment remained relatively muted, as firms stayed cautious about the potential long-term impact of the conflict in the Middle East.
