Vietnam sees sharpest rise in output for four years.
Purchasing Managers’ Index (PMI) data for April pointed to a solid improvement in business conditions in Vietnam’s manufacturing sector as improving client demand led to stronger rises in output and new orders.
Higher production requirements led to increases in both employment and purchasing activity. Meanwhile, further falls in both input costs and output prices were recorded, although in each case reductions eased.
“The growth of Vietnam’s manufacturing sector stepped up a gear in April, with the latest set of numbers the most impressive in the four-year survey’s history,” said Mr. Andrew Harker, Senior Economist at Markit, a global provider of financial information services. He added that central to the improvement was success among firms in securing new clients, helped by a continued absence of inflationary pressure.
The headline seasonally-adjusted PMI, a composite indicator designed to provide a single-figure snapshot of operating conditions in the manufacturing economy, rose to 53.5 in April from 50.7 in the previous month, signaling a solid strengthening in operating conditions.
Moreover, the improvement was the strongest since the series began in April 2011. Business conditions have now strengthened in each of the past 20 months, according to HSBC.
Driving the overall improvement in business conditions was a sharp increase in new business, as a number of firms reported having secured new customers, HSBC said. The rate of expansion was the sharpest in the series’ history. This was also the case with regard to new business from abroad, where growth was solid.