Vietnam's manufacturing continued to pick up in January. (Photo: Kinh Te Do Thi newspaper)
The headline Nikkei Vietnam Manufacturing Purchasing Managers’ Index (PMI
), a single-figure indicator of manufacturing performance-edged up to 51.5 in January from 51.3 in December 2015.
“The reading signaled a second consecutive monthly strengthening of business conditions, with the health of the sector improving at a slightly greater pace than seen at the end of 2015,” a joint report by Nikkei and Markit Economics says.
New orders increased for the second successive month in January, led by rising client demand. New export business also increased during the month, albeit at a weaker pace.
The rise in total new business contributed to a second increase in output in as many months, with the rate of expansion broadly in line with that seen in the previous month.
The report added that input costs continued to fall in January, extending the current sequence of decline to seven months, due to falling costs for commodities including oil.
“The most pleasing aspect of the latest set of manufacturing PMI figures for Vietnam was a quickening in the rate of growth of new orders at the start of 2016, showing that local firms are still able to generate new business despite a challenging global environment,” said Andrew Harker, at Markit, which compiles the survey.
“With the TPP trade agreement set to be signed later this week, thereby kicking off the ratification state, 2016 could lead to further positive developments in the Vietnamese economy following a solid start to the year,” said the analyst.