Vietnam’s PMI May 2024

According to the latest report by S&P Global Market Intelligence, the Purchasing Manager’s Index (PMI) for Vietnam’s manufacturing sector stood at 50.3 in May, unchanged from the previous month, above the 50-point threshold that separates growth from contraction.

Factory activity increased for the second consecutive month, driven by strong growth in new orders and rapidly increasing production volumes, reaching the highest point since September 2022.

Although employment declined for the second consecutive month, the backlog of work remained stable and purchasing activity expanded further in response to increased production requirements.

Input price inflation rose to its highest point since June 2022, primarily due to increasing oil and fuel costs amid weakening currency conditions, which in turn accelerated producer price inflation to its fastest rate in 15 months.

The Association of Southeast Asian Nations (ASEAN) is a political and economic union of ten members, has 667 million people and a territory of 4.5 million Km2; is currently the third largest economy in Asia-Pacific and the fifth largest in the World. The ASEAN Economic Community (AEC) has a combined GDP of USD 4.2 trillion, according to estimates for 2024.