Vietnam’s Manufacturing Purchasing Managers’ Index (PMI
), which gauges its manufacturing performance, rose to 54.0 in November from 51.7 in October, marking the strongest improvement for a year and a half.
New business increased at a sharp and accelerated pace during November, with the rate of growth quickening for the third month running to the sharpest since May 2015, according to a joint report by Nikkei and IHS Market.
New export orders also rose at a faster pace, with improving client demand reportedly supporting growth of orders from both domestic and external sources.
With new orders rising, Vietnamese manufacturers took on extra staff, and the rate of job creation quickened from that seen in the previous month, says the report.
Employment has now increased in each of the past eight months. Firms also raised purchasing activity at a faster pace, with the latest expansion the strongest since March 2011.
Vietnamese manufacturers made efforts to build inventory reserves during the month, resulting in further accumulations of both stocks of purchases and stocks of finished goods, it adds.
Demand for goods seasonally rise during the final months of the year as locals increase purchase to prepare for the Lunar New Year festival.
“The strongest growth in new business for a year-and-a-half gave a boost to the manufacturing sector in November, helping lead to a rebound in production and faster rises in employment and purchasing activity,” said Andrew Harker at IHS Markit, which compiles the survey.
“The sector therefore looks set for a strong end to 2016, while IHS Markit forecasts an increase in GDP
of 6.3% in 2017,” the analyst added.