AsemconnectVietnam - Vietnam’s manufacturing sector maintained its 15-month expansion streak in September as the Purchasing Managers’ Index (PMI) hit 51.9 points, supported by steady domestic production and record high business optimism despite rising energy costs and softer global demand.

Vietnam's manufacturing sector continued its expansion trajectory at the end of the third quarter of 2026, supported by ongoing output growth, increased purchasing activity, and the highest level of business confidence since February, according to S&P Global’s latest report released on October 1.
The S&P Global Vietnam Manufacturing Purchasing Managers’ Index (PMI) registered 51.9 points in September, down from 53.3 in August. While indicating a slight moderation in the sector’s health, the figure marks 15 consecutive months of improving business conditions across the nation’s industrial sector.
Production levels recorded robust growth, extending an unbroken growth streak that began in May 2025. However, the pace of expansion in both output and total new orders slowed compared to August. Survey respondents attributed gains in new business primarily to favorable domestic market conditions and increased order volumes from existing clients.
Conversely, challenging international market conditions dampened global demand, resulting in a second consecutive monthly decline in new export orders, which fell at their sharpest rate since April.
External headwinds also influenced input costs and supply chain operations. Escalating geopolitical tensions in the Middle East drove oil, fuel, and international freight costs higher, accelerating input price inflation to a slightly faster rate than in August.
Furthermore, international shipping bottlenecks and adverse weather conditions caused minor delays in supplier delivery times.
Despite higher cost burdens, the rate of output price increases slowed for the fifth consecutive month to its weakest point since June 2025. S&P Global noted that intense market competition limited manufacturers' ability to pass cost increases onto end customers.
Addressing operational capacity, manufacturers resolved accumulated work backlogs as order growth cooled, despite employment contracting slightly for a second straight month due to staff resignations and corporate restructuring.
Purchasing activity expanded significantly to support production needs, leading to a draw-down in raw material inventories. To streamline operations, manufacturers utilized fast shipping services to clear finished goods inventories, driving inventory levels down at the fastest rate recorded since the survey’s inception in March 2011.
Looking ahead, business sentiment strengthened markedly, reaching a seven-month high. Manufacturers expressed strong optimism regarding production prospects over the coming 12 months, cited planned product launches, and anticipated further market stabilization.
"While Vietnam's manufacturing sector maintained growth in September, data indicated that the international environment had constrained this growth rate," said Mr. Andrew Harker, Economics Director at S&P Global Market Intelligence. "New export orders declined, the Middle East conflict drove fuel and oil costs higher, and international shipping delays contributed to extended delivery times."
Mr. Harker added that despite these headwinds, significant production growth persists, indicating that the manufacturing sector will continue to serve as a primary contributor to Vietnam's GDP performance in the third quarter of 2026.
Source: vneconomy.vn