New orders surged, nearing a five-year record high.

The index results not only show that the health of the manufacturing sector improved for the third consecutive month, but also indicate that business conditions have strengthened significantly, particularly with a sharp increase in output and new orders.

According to this survey, the number of orders in June was second only to the record level recorded in March 2011. Reports indicate that demand improved as some customers returned to request additional orders for the month. The number of new export orders increased at the fastest rate since February 2022. The rapid increase in new orders was commensurate with the increase in production output, with the strongest increase in output in over 5.5 years.

New orders have put pressure on operating capacity. In some cases, companies have had to hire additional staff and workers. However, businesses say these hirings are only for temporary work.

New orders increased sharply in June.

The report also showed that companies increased their purchasing activity at the fastest rate since June 2022. However, inventories of purchased goods continued to decline; finished goods inventories decreased as businesses sold off existing stock. Another positive sign is that post-production inventories have decreased the most in the past three years.

However, businesses are also facing significant pressure from rising input costs. The report shows that the rate of increase in input costs continued in June, marking the third consecutive month of increases and reaching a two-year high. Specifically, transportation costs, oil prices, and the cost of imported goods have risen. To compensate, manufacturers have increased selling prices, with the highest increases in the past two years. Notably, these price increases have been recorded for two consecutive months.

Although delivery times have been gradually shortened, according to S&P Global experts, the improvement in seller performance is only minor as difficulties in international shipping remain.

Andrew Harker, Director of Economics at S&P Global Market Intelligence, assessed that Vietnam's manufacturing sector rebounded strongly in mid-year, overcoming relatively modest growth in recent months thanks to a rapid increase in new orders. The sharp rise in new orders exposed staffing shortages in some companies and led to an increased workload.

Hiring additional staff to meet the increased demand for new orders, coupled with a rise in base salaries in July, will increase the company's cost burden, especially as rising transportation costs have pushed input prices to their highest level in two years.

"Rising inflation may dampen future demand, but for now, companies will still benefit from the increase in new orders in June," said Andrew Harker.

Source: https://thanhnien.vn/luong-don-dat-hang-moi-tang-manh-gan-sat-muc-ky-luc-5-nam-18524070117363497.htm