Vietnam Sept manufacturing index climbs to highest level since 2011

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Vietnam's manufacturing index increased to 51.5 in September from 49.4 in August, the highest level the HSBC and Market Economics' Survey has since April 2011.

This also marked the first time the Purchasing Managers' Index (PMI) has exceeded the 50 point mark in five months, which indicates growth in industrial production.

Trinh Nguyen, an HSBC economist for the Asia market, said the above-50 PMI reading reflected "improved global demand for Vietnamese goods as well as a stabilization of domestic conditions." 

The solid growth of new orders and manufacturing employment drove the PMI higher last month, the PMI report said.

New export orders also rose at a series record pace and the sector saw new exports sales increased for the first time in four months.

Better product quality and competitive pricing helped boost sales growth, but falling output charges due to ongoing competitive pressures continued to squeeze profit margins.

While prices for fuel and raw materials increased last month, HSBC economist Nguyen said the pressures of inflation would remain contained.

Consumer prices rose to 4.63 percent in September from last year's end, the slowest growth in four years. The country hopes to keeps the pace below 6.5 percent this year.

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