Vietnam’s Manufacturing Purchasing Managers’ Index (PMI) rose from 53.9 points the previous month to reach 56.5 points in November. (Photo: cafef.vn)Hanoi (VNA) – Vietnam’s Manufacturing Purchasing Managers’ Index (PMI) rose from 53.9points the previous month to reach 56.5 points in November, according to thelatest survey from Nikkei’s IHS Markit, released on December 3.
Manufacturingbusiness conditions during November improved to one of the greatest heights inthe near eight-year survey history.
The consumer goodssector was the strongest performer of the three broad sectors covered in thelatest survey period; witnessing the fastest rises in output, new orders, andemployment.
New ordersincreased sharply in November, with the rate of expansion quickening for asecond month in a row. Strong growth of new orders encouraged manufacturers toincrease production. Moreover, the rate of output growth quickened to thefastest since March 2011.
Output also looksset to increase further over the coming year as strong demand has boostedmanufacturers’ confidence. Sentiment jumped from that seen in October and wasthe highest since February 2016.
Firms responded togreater workloads by taking on extra staff, and at a rapid rate. In fact, thepace of job creation was the fastest in the survey’s history, surpassing theprevious record seen in June.
Manufacturersincreased their stocks of both inputs and finished goods at record rates asfirms responded well to new bigger orders and prepared for likely further risesin sales in coming months. The accumulation of pre-production inventories washelped by a marked acceleration in the rate of purchasing activity growth.
Higher rawmaterial prices resulted in a further increase in input costs in November, andone that was the most marked in three months. Rising cost burdens ledmanufacturers to increase their selling prices, the first time in three months.
A number of panellistsmentioned that material shortages had contributed to higher prices for inputs,with supply issues leading some firms to report longer delivery times forinputs. Other manufacturers reported that their suppliers had been wellprepared and reduced waiting times. Overall, vendor delivery times were broadlyunchanged.
Andrew Harker, AssociateDirector at IHS Markit, said that the Vietnamese manufacturing sector continuedto defy recent signs of slowing demand elsewhere in the global economy duringNovember, seeing a strong and accelerated increase in new orders and anear-record rise in output. Moreover, firms seem confident that the good news willcontinue, prompting them to build inventories and take on staff at the sharpestrates seen in the near eight-year survey history so far. –VNA
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