Vietnam’s production on path to recovery

The manufacturing sector recorded a return to growth right from the outset of 2024.

The manufacturing sector recorded a return to growth right from the outset of 2024, with activities expanding in February fueled by increases in both volume and orders, experts from S&P Global said.

The S&P Global Vietnam Manufacturing Purchasing Mangers’ Index (PMI) posted 50.4 in February, up from 50.3 in January, and above the 50.0 no-change mark for the second consecutive month.

However, experts said the rate of improvement in the sector’s health signaled by the index remained only marginal.

The increase of new orders encouraged manufacturers to expand their staffing levels for the first time in four months, and to the greatest extend within a year.

Meanwhile, statistics from the General Statistics Office showed that the index of industrial production (IIP) in the first two months was estimated to grow 5.7% year-on-year. The manufacturing and processing industry that creates more than 80% of the industrial growth expanded by 5.9%.

The European Chamber of Commerce in Vietnam (EuroCham) and еру Korean Chamber of Business in Vietnam (KorCham) held that the increases in output and new orders together with suppliers’ shortened delivery time in the second consecutive month signal a growth possibility for the first quarter of this year.

EuroCham Vice Chairman Torben Minko said despite formidable challenges forecast for the beginning of this year, European investors’ confidence has increased since their traditional partners have kept orders and they have seen Vietnam a production hub in the global supply chain.

With a view to supporting the production industry, the Ministry of Industry and Trade will join hands with competent agencies and localities to accelerate and put into operation industrial production projects to serve local consumption and export./.