Workers are producing apparel products at a factory in Vietnam. (Photo: www.doisongphapluat.com)
The Nikkei Vietnam Manufacturing Purchasing Managers’ Index (PMI
), an indicator of manufacturing performance, bounced back to 51.3, Nikkei said in a report released on January 4.
The reading was 49.5 in September, 50.1 in October and 49.4 in November.
The strengthening of Vietnam’s manufacturing sector was supported by a rise in new orders, the first time in four months, increasing new business, and the return to growth of employment, according to the report.
“Despite the rise in new orders, there was still evidence of spare capacity at manufacturers as backlogs of work decreased for the sixth time in the past seven months,” it said.
Vietnamese manufacturers raised their input buying for the first time in four months in response to increased new business. This led to a marginal accumulation of stocks of purchases, following a fall in November. Meanwhile, stocks of finished goods were unchanged during the month.
“It was something of a relief to see the Vietnam PMI bounce back above the 50.0 no-change mark in December as it suggests that the recent soft-patch experienced both at home and in the wider region may have passed its worst point. A particular positive from the latest survey was a return to growth in new export orders after six successive months of decline,” said Andrew Harker, at Markit, which compiles the survey.
“Firms will be hoping to see demand pick up further as we move into 2016,” the analyst added.