On the morning of June 2, 2025, S&P Global announced the Vietnam Manufacturing Purchasing Managers' Index (PMI) for May 2025. There were 3 highlights: Total new orders decreased amid a significant decline in exports; Output increased again; Input costs decreased for the first time in 22 months.
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New orders in Vietnam's manufacturing sector continued to fall in May, S&P Global's report said. However, output returned to growth and overall business conditions were largely unchanged as some companies noted more stable tariff policies compared to April.
Meanwhile, weak demand contributed to the first fall in input costs in 22 months, and firms continued to cut prices.
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| Vietnam's manufacturing PMI index approached the 50-point threshold, but increased to 49.8 points compared to 45.6 points in April. Photo: TT |
Manufacturing returned to growth in May after falling in April. Beyond initial surprises, greater stability in tariff policy is said to have helped support a return to output growth, while capacity improvements were also cited.
Output also recorded a return to growth and overall business conditions were largely unchanged, with some firms absorbing and adapting to tariff policy with more stable solutions than in April.
Business confidence improved in May as tax policy developments showed a more positive trend.
Efforts to boost output prompted manufacturers to increase purchasing activity slightly in May, S&P Global reported. The increase in input purchases ended a two-month decline.
Despite the increase in purchasing activity, input inventories fell again, but the rate of decline was the least significant since August 2024. Stocks of finished goods also fell, as firms reported reluctance to hold inventory and prompt deliveries to customers.
Commenting on the survey results, Andrew Harker, Chief Economist at S&P Global Market Intelligence, said that tariff news continues to play an important role in determining the direction of Vietnam’s manufacturing sector. May saw a more stable picture of US tariff policies than April, leading to a rebound in output and improved business confidence.
Source: https://congthuong.vn/3-diem-noi-bat-cua-nganh-san-xuat-viet-thang-5-390441.html
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