AsemconnectVietnam - Vietnam’s manufacturing PMI in April dropped to 45.6, falling out of the growth threshold after a month of recovery.

New orders saw a decline
S&P Global has just released the Vietnam Manufacturing Purchasing Managers' Index (PMI) report for April of 2025. There were 3 highlights: Output, new orders and employment all decreased significantly; business sentiment reached its lowest level since August 2021; and input cost growth slowed and output prices fell.
Vietnam’s manufacturing PMI in April fell to 45.6
After three consecutive months of struggling around the 50-point mark, Vietnam’s manufacturing PMI index fell sharply from 50.5 in March to only 45.6 in April of 2025.
This was the lowest level since May 2023 and reflected the most weakening of the manufacturing sector in 11 months. The survey results were conducted with 400 enterprises from April 9 to 22.
Notably, the number of new orders in the manufacturing sector decreased significantly in April, thereby reversing the upward trend in March. Moreover, the rate of decline was the strongest and fastest in nearly two years. Respondents said the decline in new orders reflected the impact of volatile international market conditions.
On a positive note, input costs have cooled. According to S&P Global, the pace of raw material price increases in April of 2025 was the weakest since the price increase streak began in August of 2023. Some survey participants said that international oil and transportation costs have begun to decline, easing import pressure and improving the potential for a recovery in gross profit margins in the second and third quarters.
Deep price declined, policy expectations opened
The weakening global consumer market has forced manufacturers to continue to lower prices to retain customers. April marked the fourth consecutive month of price declines, with the sharpest decline in 21 months. Despite the negative impact on short-term profits, this downward trend can contribute to stabilizing inflation expectations - a key factor that facilitates more flexible monetary policy in the second half of the year.
In that context, business sentiment is weakening and inflation is controlled, tools such as increasing preferential credit or restructuring capital flows are expected to be deployed with greater intensity. This is also one of the timely support strategies for the group of businesses heavily affected by trade fluctuations.
However, for financial investors, the PMI index is not simply a technical signal but an indicator guiding the profit cycle. Revaluing stocks and expecting cash flow to return will only be truly justified when orders stabilize, output recovers and input costs are controlled. At that time, economic cycle-sensitive industries such as logistics, supporting industries, raw materials and industrial real estate will be the focus of the new allocation strategy.
According to Mr. Andrew Harker - Economic Director at S&P Global Market Intelligence, in an unstable situation, it is important to monitor S&P Global's Vietnam Manufacturing PMI data in the coming months to see how business conditions develop. This is a warning not only for manufacturing enterprises but also a reminder for all investors looking for early signals from the real economy.
CK
Source: VITIC/congthuong.vn