return icon Vietnamnet.vn

Vietnam PMI disrupted by storms and flooding

The Vietnam Manufacturing Purchasing Managers' Index (PMI) dipped fractionally below the 50.0 no-change mark to 49.9 last month, signalling broadly unchanged business conditions during the month.

{keywords}
Workers at a manufacturing chain inside an LG Electronics Vietnam’s production plant in Hai Phong. — VNA/VNS Photo Lam Khanh

A survey by newly-released IHS Markit showed that the recovery in the Vietnamese manufacturing sector paused last month as a succession of storms and associated flooding hit the country.

This followed a reading of 51.8 in October and was the first sub-50 figure in three months. Output decreased slightly last month, thereby ending a two-month sequence of growth.

That said, anecdotal evidence suggested that the reduction could be temporary as a number of firms indicated that recent stormy weather and subsequent flooding had disrupted their production during the month. The COVID-19 pandemic was also a factor weighing on output.

New orders continued to rise, but only fractionally as business was impacted by the stormy weather conditions and flooding, as well as the pandemic. The latter had a particular effect on new export orders, which decreased solidly.

On the other hand, a number of respondents indicated that new orders had increased amid improving underlying demand.

With new order growth slowing, firms worked through outstanding business, leading to a tenth successive reduction in backlogs of work. The latest fall was solid, but softer than in October.

Falling workloads led firms to scale back their employment and purchasing activity last month. The modest reduction in staffing levels followed a slight rise in the previous month.

Purchasing activity decreased for the first time in three months.

The fall in input buying fed through to a reduction in stocks of purchases. In both cases, however, consumer goods producers bucked the wider trend by posting expansions.

Meanwhile, a reduction in output during the month resulted in a decrease in stocks of finished goods.

As well as hampering production, the stormy weather and COVID-19 pandemic combined to disrupt the delivery of purchased items to manufacturers. Suppliers' lead times lengthened for the twelfth successive month and to the greatest extent since August. Raw material shortages were also a factor behind delivery delays.

Shortages of raw materials contributed to rises in input costs during November, with difficulties importing items and higher prices in international markets also cited. Input prices increased sharply, and at the fastest pace since August 2018. The rate of output price inflation also quickened, but remained modest. The rise in charges was the greatest for two years.

Despite the setback in November, firms expect production to expand over the coming year. Confidence was centred on expectations that the COVID-19 pandemic would remain under control in Vietnam and cause less disruption globally. 

IIP increases slightly

The index of industrial production (IIP) last month is estimated to increase by 0.5 per cent from the previous month and by 9.2 per cent from the same period last year.

In which, the mining industry decreased by 6.2 per cent; processing and manufacturing increased 11.9 per cent; electricity production and distribution increased by 4 per cent; water supply and waste and wastewater management and treatment increased by 5.3 per cent.

The General Statistics Office's socio-economic situation report for November and 11 months of this year said that in the context of well-controlled COVID-19 pandemic in the country and the EU-Vietnam Free Trade Agreement (EVFTA) created the driving force for sectors of the economy to recover and operate in the new normal states.

Generally, the IIP in the first eleven months of this year was estimated to increase by 3.1 per cent over the same period last year, lower than the 9.3 per cent increase of the same period last year.

Specifically, processing and manufacturing increased by 4.7 per cent, contributing 3.8 percentage points to the general growth; power generation and distribution rose 3.2 per cent, contributing 0.3 percentage points.

In addition, the water supply, waste and wastewater management and treatment sector increased four per cent, contributing 0.1 percentage points; the mining industry alone decreased by 7.1 per cent, down 1.1 percentage points in the overall growth.  VNS

Foreign capital still heads to manufacturing, processing

Foreign capital still heads to manufacturing, processing

The total amount of foreign investment poured into Vietnam this year to September 20 reached 21.2 billion USD, equivalent to 81.8 percent of the same period last year, reported the Ministry of Planning and Investment.

Local manufacturing industry enjoys solid growth in September

Local manufacturing industry enjoys solid growth in September

Manufacturing sector returned to growth in September as concerns around the outbreak of the COVID-19 pandemic in the country eased. Both output and new orders increased, while business confidence strengthened, and the rate of job cuts softened.

MORE NEWS

Huong Pagoda crowded on the first day of spring festival 2023

Despite the cold weather, thousands of people flocked to the Huong (Perfume) Pagoda Festival in Huong Son commune, Hanoi’s outlying district of My Duc on the opening day to celebrate the new year.

Data centers: Vietnam's bright spot

Under the impact of Covid-19, many activities have moved to online platforms and amount of data uploaded has been increasing.

More Vietnamese scientists returning to home country

More Vietnamese scientists decided to return to the country with a desire to devote themselves to their homeland’s growth.

Hoang to defend WBA belt in hometown next month

Truong Dinh Hoang announced the bout on his Facebook page on February 26, though the challenger has yet to be named.

Sea tourism and expectations for a 'made in Vietnam' fleet

The number of cruise tourists accounts for only 2-3% of the total number of international visitors to Vietnam.

Hanoi’s tourism sector rakes in over VND1 trillion during Tet holiday

The capital expects to welcome roughly 332,000 visitors, including 32,000 international guests, during the Lunar New Year holiday from January 21 to January 26, with total revenue anticipated to reach more than VND1 trillion.

Stone lion statues - Symbol of stone sculpture art of Ly Dynasty

According to Buddhism, lion is the embodiment of intellectual power, but with stars on the body, the stone lions of the Ba Tam pagoda-temple also have the meaning of carrying the moving sky.

Vietnam's retail market predicted to bustle in 2023

Although 2023 is forecast to see many difficulties, experts expect this is a recovery year of the retail sector after COVID-19 pandemic as there are many signs showing the return of investors and higher demands.

Vietnam's leather and footwear industry targets US$27 billion in 2023 exports

The leather and footwear industry is striving to reach US$27 billion in export turnover in 2023, an increase of about 10% compared to one year earlier amid shrinking major markets and falling demand.

Discovering artisans' skills in Thanh Ha ancient pottery village

If pottery villages now mainly use molds, artisans in the Thanh Ha ancient pottery village in Hoi An city, Quang Nam, have kept their traditional method of making pottery - hand made and wheel thrown.

Destinations across Vietnam report surges in holiday-maker numbers during Tet

Tourist attractions across Vietnam have lured large numbers of holiday-markers during the week-long Lunar New Year (Tet) festival from January 20-26.

EVFTA presents tremendous trade, investment advantages

Commitments outlined in the EVFTA on both trade and investment are expected to contribute to attracting European businesses and investors to expand their activities in Vietnam, further promoting trade and investment cooperation.

10 houses with special architecture in Vietnam

With bold ideas, architects can create houses that are both aesthetic and functional. Here are 10 interesting houses in Vietnam.

89 people killed in traffic accidents during seven-day Tet holiday

A total of 152 traffic accidents occurred nationwide, killing 89 people and injuring 111 others during the 2023 Tet Lunar New Year holiday from January 20-26, reported the Traffic Police Department.

End of Tet holiday marked by high traffic congestion around major cities

In a bid to avoid the congestion, many people opted to return on Wednesday afternoon or Thursday morning.
back_to_top