Vietnam's manufacturing sector closed 2025 with positive growth signals as the Purchasing Managers' Index (PMI) reached 53 points, marking a continuous improvement in business conditions throughout the second half of the year.

With a surge in output and new orders, coupled with rising business confidence, enterprises are creating a solid launchpad toward the goal of a 6.7% increase in industrial output in 2026.

S&P Global on January 2 released its PMI report for Vietnam's manufacturing sector for December 2025, which highlighted three key points: growth in output, new orders, and employment; input costs rising at their fastest rate since June 2022; and business confidence reaching a 21-month high.

The report noted that the Vietnamese manufacturing sector concluded 2025 with positive growth signals, with the December PMI recorded at 53 points. Although this was a slight dip from 53.8 points in November, the fact that the index remained above the 50-point threshold indicates a robust improvement in the health of the manufacturing industry.

A standout highlight was that manufacturers extended their period of production growth for the eighth consecutive month, driven by a combination of mild weather conditions and momentum from new orders. While the rate of production growth remained strong, it was the softest increase seen in the last three months.

According to the report, the volume of new orders rose for the fourth consecutive month due to improved customer demand. However, the overall growth rate slowed compared to November. This was partly due to new export orders declining for the first time in three months, which exerted pressure on total demand.

Expectations for a breakthrough in 2026

Regarding the outlook for 2026, S&P Global indicated that manufacturers are showing increasing optimism about production prospects. Business confidence strengthened for the third consecutive month, hitting its highest level since March 2024.

According to the survey, nearly half of the respondents forecast that output will grow in the coming year, fueled by improved customer demand, the launch of new product lines, and efforts to enhance production capacity.

Economics Director at S&P Global Market Intelligence, Mr. Andrew Harker, said: "The Vietnamese manufacturing sector ended a turbulent year on a positive note, with output and new orders rising solidly again and business confidence hitting a 21-month high."

"Overall, the sector goes into 2026 in a positive position, with manufacturers optimistic of securing new business and being able to expand their production capacity. S&P Global Market Intelligence forecasts industrial production growth of 6.7% in 2026," he added.

Source: Vneconomy