AsemconnectVietnam - Vietnam's manufacturing PMI index approached the 50-point threshold, but increased to 49.8 points compared to 45.6 points in April.

On the morning of June 2, 2025, S&P Global announced the Vietnam Manufacturing Purchasing Managers' Index (PMI) in May of 2025. There were 3 highlights: the total new orders decreased in the context of a significant decrease in exports; the output increased again; and the input costs decreased for the first time in 22 months.
Manufacturing rebounds, May PMI nears 50
S&P Global reported that new orders in Vietnam's manufacturing sector continued to fall in May. However, output grew again and overall business conditions were largely unchanged as some firms noted more stability in tariff policies compared to April.
Meanwhile, weak demand contributed to a first decline in input costs in 22 months, and firms continued to lower prices.
Manufacturing rebounds, May PMI nears 50
Manufacturing returned to growth in May after falling in April. Overcoming initial surprises, greater stability in tariff policies was said to have helped support a rebound in output, while capacity improvements were also cited.
The output also rebounded and overall business conditions were largely unchanged, with some firms responding to tariffs with more stability than in April.
Business sentiment improved in May as tariff developments showed a more positive trend.
According to S&P Global, efforts to increase output prompted manufacturers to increase purchasing activity slightly in May. The increase in input purchases ended a two-month decline.
Despite the increase in purchasing activity, input inventories continued to decline, but the decline was the least significant since August 2024. Finished goods inventories also declined, as firms reported reluctance to hold inventory and prompt deliveries to customers.
Commenting on the survey results, Andrew Harker, Chief Economist at S&P Global Market Intelligence, said that tariff news continues to play an important role in determining the direction of Vietnam’s manufacturing sector. May saw a more stable picture of US tariff policies than April, leading to a rebound in output and improved business confidence.
CK
Source: VITIC/congthuong.vn