Vietnam’s manufacturing sector is seeing a modest recovery in business confidence, rebounding from a 44-month low in April, according to S&P Global’s latest report. Optimism is fueled by expectations of improved market stability and easing trade tensions, though overall sentiment remains below the long-term average. The S&P Global Vietnam Manufacturing PMI dipped to 48.9 in June from 49.8 in May, signaling a continued contraction in business conditions for the third straight month. Weakened export demand—particularly from the U.S. due to new tariffs—led to a sharper decline in new orders, prompting manufacturers to reduce staffing, purchasing, and inventories. Employment fell for the ninth consecutive month, while output increased slightly for the second month. Analysts caution that continued production growth is unsustainable without a pickup in demand. While manufacturers remain hopeful for stabilization in the second half of 2025, current trends suggest caution as trade-related headwinds persist. (ICE HO CHI MINH CITY)

Fonte notizia: Vietnam Investment Review