Export orders jump to 14-month high in Vietnam's manufacturing sector

By The Nikkei Asia Review   July 1, 2016 | 09:00 pm GMT+7

The Nikkei Vietnam Manufacturing Purchasing Managers' Index, or PMI, an indicator of manufacturing performance, posted 52.6 in June, broadly in line with 52.7 in May.

A reading above 50 indicates economic expansion, while a reading below 50 points towards contraction.

Business conditions in the Vietnamese manufacturing sector continued to improve in June with output growth quickening to an 11-month high.

The rate of expansion in manufacturing output in Vietnam quickened for the fourth successive month and was the sharpest since July last year.

New orders were the key factor leading to increased production, according to respondents. New export orders accelerated to a 14-month high.

Higher output requirements led manufacturers to increase both their employment and purchasing activities.

Staffing levels rose at a solid pace and faster than those recorded during May.

Stocks of finished goods also fell in June, stretching the trend for the sixth successive month.

“The Vietnamese manufacturing sector continued to build on a positive start to the year in June, with output growth continuing to accelerate on the back of solid expansions in new orders from both home and abroad. Helping firms to secure new business was competitive pricing, in turn facilitated by a moderation of cost inflation in the sector," said Andrew Harker at survey conductor Markit.

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Processing and manufacturing industry records positive start to 2016

 
 
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