HSBC Vietnam’s September survey of Vietnamese manufacturers indicates that the Purchasing Managers’ Index (PMI) rose back above the 50.0 no-change mark during September to record 51.5. That was an improvement on August’s 49.4 and the best reading since April 2011, the first month for which survey data are available.
Driving the PMI, a composite indicator designed to provide a single-figure snapshot of operating conditions in the manufacturing economy, higher in September were survey record rises in new business and employment.
Growth of new business was solid, reflective of an improvement in underlying demand from domestic and foreign clients. Better product quality and competitive pricing also helped support sales growth.
New export business also rose at a series record pace. September was the first time in four months that an increase in new export sales had been registered.
Encouraged by higher sales, payrolls in Vietnam’s manufacturing sector continued to expand. Marked growth was the second in successive months as companies sought to keep on top of their workloads.
This momentum is expected to rise further until the year’s end thanks to the possible recovery in markets of the Euro Zone, China, the US and Japan.