FX.co ★ Vietnam Manufacturing Returns to Growth

The S&P Global Vietnam Manufacturing Purchasing Managers' Index (PMI) increased to 52.4 in July 2025, up from 48.9 in June. This marks the first expansion in four months and the most significant improvement in nearly a year. The growth was driven by a renewed increase in new orders, which grew at their fastest rate since November 2024. Nevertheless, export demand continued its decline for the ninth consecutive month due to ongoing U.S. tariffs. To accommodate stronger domestic demand, production rose for the third consecutive month, and purchasing activity experienced its sharpest increase since August 2024. Although employment levels showed signs of nearing stabilization, companies still encountered material shortages and delivery delays, leading to further stock depletion and an increase in input costs at the fastest rate this year. Consequently, output prices rose modestly, ending a period of price reductions. Despite the uptick in activity, business confidence fell to a three-month low, hindered by trade concerns but buoyed by hopes for market stability and the introduction of new products.