The report highlighted that the Vietnamese manufacturing sector gained momentum at the start of the final quarter of 2025. Sharp and accelerated increases in output and new orders were recorded, while employment expanded for the first time in just over a year.

Stocks of purchases also rose, and business confidence reached a 16-month high. Meanwhile, inflationary pressures intensified, with both input costs and output prices increasing at faster rates than in September.

New orders rose for the second consecutive month, at a pace stronger than in September, marking the fastest expansion since July 2024 amid improved customer demand. New export orders contributed to overall growth, rising slightly for the first time in a year.

Manufacturers responded to higher demand by increasing production, which grew at the sharpest pace since July 2024, continuing a six-month upward trend. Firms also showed more optimism regarding the 12-month output outlook, with business sentiment hitting a 16-month high based on expectations of rising orders and plans to expand production capacity.

The surge in new orders and output requirements led to higher employment in October, the first increase in over a year. Increased purchasing activity for the fourth consecutive month contributed to an accumulation of stocks of purchases, the first in more than two years. Meanwhile, stocks of finished goods decreased slightly as firms used inventory to meet orders.

Input cost inflation accelerated sharply in October, the strongest since July 2024. Around 27% of respondents reported rising input prices, citing higher raw material costs and supply shortages. Output price inflation also quickened, reaching a 40-month high.

Andrew Harker, Economics Director at S&P Global Market Intelligence, said: “The Vietnamese manufacturing sector moved up a gear in October, seeing much stronger increases in output and new orders during the month. Positively, the strength of the expansions was sufficient to enable firms to take on extra staff and build inventories of inputs.

“Whether these growth rates can be sustained in the months ahead remains to be seen, but there is clearly some positive momentum in the sector at present. Inflationary pressures built again, however, and are now relatively elevated. For now, customers are happy to look through price increases and commit to new orders, but this may start to wane should rates of inflation pick up further,” he noted.

Vietnam's PMI rebounds in May amid improved output and business confidence

VOV.VN - Vietnam’s Manufacturing Purchasing Managers' Index (PMI) remained below the 50.0 no-change threshold for a second consecutive month in May but climbed to 49.8 from 45.6 in April, signaling a near-stabilisation in business conditions, according to S&P Global.