return icon Vietnamnet.vn

Vietnam experiences solid rise in production

The Vietnamese manufacturing sector rose solidly inside growth territory at the end of the third quarter of the year.

The S&P Global Vietnam Manufacturing Purchasing Managers' Index (PMI) registered 52.5 in September, a fraction lower than the reading of 52.7 in August but still pointing to a solid improvement in business conditions across the sector. Operating conditions have now strengthened in each of the past 12 months.

Vietnam experiences solid rise in production

Likewise, the current sequence of new order growth also extended to a year as new business expanded solidly in September amid reports of improving customer demand. That said, the rate of increase softened from August. This was also the case with regards to new export orders, where some respondents mentioned signs of demand weakness in export markets. The rise in new business from abroad was the slowest in ten months.

With total new orders continuing to increase, manufacturers expanded their production solidly. The rate of growth was broadly in line with that seen in the previous month.

The Vietnamese manufacturing sector maintained its growing momentum in Semtember as new manufacturing orders continued to rise, fuelling growth of output, employment and purchasing activity.

Similarly, employment and purchasing activity each rose solidly again at the end of the third quarter. As well as responding to higher production requirements, firms also increased staffing levels to support new production lines.

Capacity expansions enabled firms to keep on top of workloads despite ongoing new order growth, as evidenced by a second successive reduction in backlogs of work.

Vietnam experiences solid rise in production

Renewed inventory building was signalled across the manufacturing sector in September. Stocks of purchases increased for the first time in six months, linked to rising new orders and fuelled by higher purchasing activity.

Similarly, stocks of finished goods increased for the first time since February, and to the greatest extent in close to a year-and-a-half. Some respondents indicated that finished goods inventories had risen due to sales volumes coming in below expectations during the month.

Andrew Harker, director of Economics at S&P Global Market Intelligence said, “The Vietnamese manufacturing sector continued to tick along nicely at the end of the third quarter, with the PMI now having signalled overall expansion throughout the past year. A much more benign price and supply environment is providing support, while demand also improved again in September."

Harker added, "There were some tentative signs of new order growth slowing, however, particularly with regards to exports. This was a factor in a renewed expansion in stocks of finished goods as some firms sold fewer items than expected. This may lead manufacturers to limit production growth in October, but business confidence remained strong and so the prospects for the final three months of the year appear positive overall."

Source: VIR

MORE NEWS

Government plans to rearrange state-owned enterprises till 2025

Deputy Prime Minister Le Minh Khai has signed a decision approving a plan of rearrangement of state-owned enterprises for the period of 2022-2025 in the form of one-member limited company, equitization, re-arrangement and divestment.

Transport Ministry urges new ship channel for large vessels in Mekong Delta

The Ministry of Transport has urged Tra Vinh Province to implement compensation payment for site clearance and resettlement support to build a new ship channel for large vessels in the Hau River.

Toan retains WBA Asia belt against Amparo in Bangkok

Le Huu Toan successfully defended his World Boxing Association (WBA) Asia minimum-weight (48kg) belt during The Challenger event on November 30 in Bangkok, Thailand.

Billions of dollars from foreigners invested in Vietnam’s enterprises

Foreign capital keeps flowing into Vietnam through many different channels, helping investors regain their confidence in the stock market and the economy.

Urban areas, parks to be built on Red River alluvium grounds

Hanoi authorities plan to build new urban areas and eco-friendly housing, and develop open space with parks, urban squares and flood parks on thousands of hectares on the alluvium grounds of the Red River area.

Target of 1 million social housing units difficult to reach

The goal of developing 1 million social housing units may not be feasible.

Ministry to control rice import management

The Ministry of Industry and Trade (MOIT) fears the high level of rice imports and the failure to control imports will affect domestic production.

Gambling soars during World Cup

Football betting is taking place in the open air at venues where people gather to watch World Cup matches, or quietly online.

Michelin Guide to announce first Vietnamese restaurant selections

Hanoi and Ho Chi Minh City have been selected by Michelin as the latest destinations joining the international selection, as compiled by the Michelin Guide.

Ministry to crack down on Internet ads violations

The Ministry of Information and Communications held a conference in Hanoi on November 30 to roll out Internet advertising management measures.

Seven-day Tet holiday fixed for State employees

Officials, civil servants, public employees and workers of State administrative and socio-political organisations will enjoy a seven-day Lunar New Year (Tet) and four-day National Day holidays next year.

Vietnam has opportunity for energy transition towards green growth

Vietnam boasts substantial potential for wind power, particularly offshore wind power, providing an opportunity for the country to fulfill its energy transition target towards green growth.

PM requests combined efforts to combat IUU fishing

Prime Minister Pham Minh Chinh called for concerted efforts to fight illegal, unreported and unregulated (IUU) fishing while chairing a teleconference with 28 coastal provinces and cities on December 1.

Disciplinary measures against a number of leading officials, Party organisations

The Party Central Committee’s Inspection Commission held its 23rd session in Hanoi on November 29-30, during which it proposed disciplinary actions be taken against some leading officials and party organisations.

Big bosses lose billions of dollars

Several businessmen have built a fortune over the last decade, but their ambition of obtaining growth at lightening speed has caused their assets to drop dramatically.
back_to_top