Illustrative image. (Source: www.doanhnhansaigon.vn)Hanoi (VNA) - The Vietnamese manufacturing sector ended 2016 on apositive note, with the Nikkei Vietnam Manufacturing Purchasing Managers’ Index(PMI) coming second among the top three PMIs in ASEAN region.
The Nikkei Vietnam Manufacturing PMI, a composite performance indicator of themanufacturing sector, posted 52.4 in December, down from November’s 54 butcontinuing to signal solid monthly improvement in the sector’s health.
As per the latest PMI data released by Nikkei market, in December, among ASEANcountries, the Philippines was at first place at 55.7; the second place went toVietnam at 52.4; and Thailand took third place at 50.6. Myanmar posted49.4, Indonesia was at 49, Malaysia at 47.1 and Singapore at 43.3.
Vietnam’s PMI saw solid growth because business conditions improved on the backof rises in new orders, output and employment. The rate of expansion inpurchasing activity was substantial amid efforts to build inventory reserves.Input costs continued to rise sharply, and companies responded by increasingcharges at one of the fastest rates in the past five-and-a-half years.
“Solid growth in the final month of 2016 completed a generally positive yearfor the Vietnamese manufacturing sector,” said Andrew Harker from IHS Markit,which compiles the survey.
“Local firms continue to be able to secure new work, and the joint-record risein new export business is a highlight in the latest survey. The sector seems ingood shape heading into 2017, and IHS Markit forecasts a rise in GDP, at 6.3percent.”
The Nikkei Vietnam Manufacturing PMI is based on data compiled from monthlyresponses to questionnaires sent to purchasing executives in around 400industrial companies. The panel is stratified by GDP and size of companyworkforce.
The manufacturing sector is divided into eight broad categories: basic metals,chemicals and plastics, electrical and optical, food and drink, mechanicalengineering, textiles and clothing, timber and paper, and transport.
On the whole, however, the ASEAN manufacturing sector ended 2016 on a weakernote, with business conditions in the region worsening in December at the quickestrate in 13 months, the survey said.
At 49.1, down from 49.4 in November, the Nikkei ASEAN Manufacturing PMIsignalled the sector’s deteriorating health for the third month in a row. TheDecember survey data also indicated a disappointing fourth quarter for ASEANmanufacturing companies.
Strong declines in output and in new orders drove the ASEAN PMI lower at theend of 2016. Figures also indicated decreasing new business from abroad lastmonth. Both production volumes and new export orders shrank at the fastest pacesince November 2015.
A weaker client demand led ASEAN manufacturers to purchase fewer inputs for thethird straight month, which in turn saw pre-production stock levels drop totheir lowest in 16 months.
Cost inflation intensified across the ASEAN manufacturing industry in December,with input prices rising at the sharpest rate since October 2015. To helppreserve profit margins, firms raised selling prices, although at a slowerpace.
The sustained deterioration in ASEAN manufacturing conditions was accompaniedby broadly weaker national performances. Even countries with better businessconditions reported marginal or slow rates of improvement compared to November.-VNA
The Nikkei Vietnam Manufacturing PMI, a composite performance indicator of themanufacturing sector, posted 52.4 in December, down from November’s 54 butcontinuing to signal solid monthly improvement in the sector’s health.
As per the latest PMI data released by Nikkei market, in December, among ASEANcountries, the Philippines was at first place at 55.7; the second place went toVietnam at 52.4; and Thailand took third place at 50.6. Myanmar posted49.4, Indonesia was at 49, Malaysia at 47.1 and Singapore at 43.3.
Vietnam’s PMI saw solid growth because business conditions improved on the backof rises in new orders, output and employment. The rate of expansion inpurchasing activity was substantial amid efforts to build inventory reserves.Input costs continued to rise sharply, and companies responded by increasingcharges at one of the fastest rates in the past five-and-a-half years.
“Solid growth in the final month of 2016 completed a generally positive yearfor the Vietnamese manufacturing sector,” said Andrew Harker from IHS Markit,which compiles the survey.
“Local firms continue to be able to secure new work, and the joint-record risein new export business is a highlight in the latest survey. The sector seems ingood shape heading into 2017, and IHS Markit forecasts a rise in GDP, at 6.3percent.”
The Nikkei Vietnam Manufacturing PMI is based on data compiled from monthlyresponses to questionnaires sent to purchasing executives in around 400industrial companies. The panel is stratified by GDP and size of companyworkforce.
The manufacturing sector is divided into eight broad categories: basic metals,chemicals and plastics, electrical and optical, food and drink, mechanicalengineering, textiles and clothing, timber and paper, and transport.
On the whole, however, the ASEAN manufacturing sector ended 2016 on a weakernote, with business conditions in the region worsening in December at the quickestrate in 13 months, the survey said.
At 49.1, down from 49.4 in November, the Nikkei ASEAN Manufacturing PMIsignalled the sector’s deteriorating health for the third month in a row. TheDecember survey data also indicated a disappointing fourth quarter for ASEANmanufacturing companies.
Strong declines in output and in new orders drove the ASEAN PMI lower at theend of 2016. Figures also indicated decreasing new business from abroad lastmonth. Both production volumes and new export orders shrank at the fastest pacesince November 2015.
A weaker client demand led ASEAN manufacturers to purchase fewer inputs for thethird straight month, which in turn saw pre-production stock levels drop totheir lowest in 16 months.
Cost inflation intensified across the ASEAN manufacturing industry in December,with input prices rising at the sharpest rate since October 2015. To helppreserve profit margins, firms raised selling prices, although at a slowerpace.
The sustained deterioration in ASEAN manufacturing conditions was accompaniedby broadly weaker national performances. Even countries with better businessconditions reported marginal or slow rates of improvement compared to November.-VNA
VNA
