Vietnam's Purchasing Managers' Index (PMI) drops to 48.9 points

On the morning of July 1, S&P Global released the Vietnam Manufacturing Purchasing Managers' Index (PMI) report for June 2025.

A fall in total new orders contributed to a decline in employment and purchasing activity in June. Photo: Minh Lam

The latest report from S&P Global said that the Vietnam Manufacturing Purchasing Managers' Index (PMI) fell to 48.9 points in June compared to 49.8 points in May.

This is the third month that Vietnam’s PMI has been below the 50-point threshold, signaling a slight deterioration in business conditions in the first half of the year. This is particularly true of the export sector, where survey panelists reported a decline in new orders from abroad.

S&P Global experts assessed that the deterioration in the overall health of the manufacturing sector this time was due to a decline in new orders. Specifically, the number of new orders decreased slightly in June, but the rate of decline was faster than in May.

Demand fell sharply in export markets, with new orders from abroad falling much more than total new orders. The rate of decline in new export orders was similar to that in May 2023.

A decline in total new orders contributed to a decline in employment, purchasing activity and inventories in June. The number of workers fell for the ninth consecutive month, at a faster rate than the previous month.

Despite weak demand, manufacturers continued to increase production in June. However, raw material shortages and the depreciation of the dong against the US dollar caused input costs to increase slightly, forcing manufacturers to raise output prices.

Supply shortages also contributed to longer supplier delivery times, while bad weather and transport delays were also among the factors that led to longer delivery times. Seller performance deteriorated sharply, with the biggest decline since February.

Source: https://hanoimoi.vn/chi-so-nha-quan-tri-mua-hang-pmi-viet-nam-giam-xuong-muc-48-9-diem-707629.html