Vietnamese manufacturing continues recovery in October

Vietnam’s Manufacturing Purchasing Managers' Index (PMI) reached 51.8 in October. (Photo: VNA)

“According to the latest PMI data, the start of the fourth quarter of the year saw the continued recovery of the Vietnamese manufacturing sector. The situation will continue as long as the COVID-19 pandemic remains under control,” Andrew Harker, Economics Director at IHS Markit, said.

The survey released by Nikkei and IHS Markit on November 2 showed that the index was down marginally from 52.2 in September but still signalling an improvement in the health of the sector. With the pandemic remaining under control in the country, firms recorded solid improvements in new orders and output.

Moreover, employment returned to growth, following an eight-month sequence of job cuts.

Meanwhile, new export orders were unchanged amid some demand weakness in markets where the virus continues to cause problems, notably in Europe. Greater output requirements encouraged manufacturers to take on extra staff in October, reported Vietnam News Agencies.

Employment increased for the first time since January, though at only a marginal pace amid ongoing signs of spare capacity. Backlogs of work continued to decrease./.


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