Vietnam manufacturing in best health in 33 months

TN News

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The manufacturing sector has gained momentum this year, with January seeing the strongest rise in output since April 2011, HSBC said in a report.

Vietnam's purchasing managers’ index (PMI) rose to 52.1 in January from 51.8 in December, it said.

The gauge indicates the operating conditions in the sector based on new orders, output, employment, suppliers’ delivery times, and stock of items purchased.

It increased for the fifth consecutive month and by the second highest rate since the survey began in April 2011.

New orders increased for the fourth month while new export orders rose in January to end a two-month decline, leading to a record rise in input purchasing in the survey’s history and reduction in inventories.

Employment rose for the sixth straight month.

Trinh Nguyen, Asia economist at HSBC, said the continued rise in employment shows that “manufacturers are upbeat about the sector’s growth outlook.”

“We expect exports to boast another strong year in Vietnam, lifting growth to 5.6 percent.”

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