S&P Global: Vietnam's PMI rebounds after five months

Vietnam’s Manufacturing Purchasing Managers' Index (PMI) recorded a return to growth in early 2024, driven by an improved economic outlook that led to an increase in new orders, S&P Global has reported.

S&P Global’s report said that in January, the country’s PMI reached 50.3 points from 48.9 points in December last year. The result indicated an improvement in the health of the manufacturing sector for the first time in the last five months.

Vietnamese manufacturers also experienced a return to growth early this year as the improvement in demand helped increase both output and the number of new orders.

Gabor Fluit, Chairman of the European Chamber of Commerce in Vietnam (EuroCham), said Vietnam's economic recovery is heading in the right direction.

To sustain this growth momentum, Vietnam needs to focus on innovation, building stronger trade relations with key export markets, and improving the value of exports through processing, he said.

Le Duy Binh, CEO of Economica Vietnam, was optimistic about Vietnam’s economic growth, noting that the global economy is showing signs of recovery, particularly in major economies that are important export markets for Vietnam's goods and services.

Except for the European Union (EU), other economies such as the US, Japan, China, Australia, and ASEAN countries are experiencing strong recovery, indicating stable growth in demand, he said.

Binh said the sustained macroeconomic stability and other stable achievements in 2023 laid a foundation for continuing to maintain and boost the confidence of both domestic and foreign businesses, as well as consumers, thus increasing prospects for investment, and boosting the retail market and domestic consumption.

Recent figures showed that many foreign investors are interested in the Vietnamese market, especially in activities related to shifting supply chains, Binh stressed, adding that this promises that foreign investment will continue to increase, and domestic private investment will also improve compared to last year, directly contributing to the overall economic demand.