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Vietnam PMI July 2025 – manufacturing purchasing managers index
Cimigo Vietnam market research has collected the Vietnam PMI – manufacturing purchasing managers index since 2013. S&P Global compiles the Vietnam PMI S&P Global from responses to monthly questionnaires sent to purchasing managers in a panel of around 400 manufacturers.
The Vietnamese manufacturing sector returned to growth in July as a renewed expansion in new orders supported a faster rise in production. This was despite further export weakness as a result of tariffs. Purchasing activity also increased, while employment neared stabilisation. There were a number of reports of difficulties sourcing raw materials, resulting in supplier delivery delays, lower input stocks and higher costs for purchases.
The S&P Global Vietnam Manufacturing Purchasing Managers’ Index™ (PMI®) posted 52.4 in July, up from 48.9 in June and back above the 50.0 no-change mark for the first time in four months. As such, the index pointed to a strengthening in the overall health of the manufacturing sector. In fact, the solid improvement in business conditions was the most marked for almost a year.
The improvement in operating conditions coincided with a return to growth of new orders in July. New business expanded for the first time in four months, and at the fastest pace since November last year amid reports of customer demand strengthening.
That said, some respondents highlighted the negative impact of US tariffs on new order growth. In fact, new business from abroad continued to fall as a result of tariffs, extending the current sequence of contraction to nine months. The renewed increase in new orders helped to support production growth in July. Output rose for the third month running. Moreover, the pace of expansion was marked and the fastest in 11 months.
Higher output requirements led to a return to growth of purchasing activity. Here too, the pace of expansion was the sharpest since August last year. Meanwhile, employment neared stabilisation. Although staffing levels continued to fall amid ongoing spare capacity following the recent period of declining new orders, the latest reduction was the slowest in nine months as output requirements increased.
Backlogs of work continued to fall, albeit to the smallest extent in the current seven-month sequence of depletion. Despite renewed growth of input buying, stocks of purchases declined again as panellists reported challenges securing raw materials. That said, the pace of depletion was the weakest since December 2023. Stocks of finished goods also decreased in July.
Material shortages resulted in a further lengthening of suppliers’ delivery times. The latest deterioration in vendor performance was solid and only slightly less pronounced than that seen in June. Difficulties sourcing materials, particularly those from abroad, led to an increase in input costs at the start of the second half of the year. Input prices increased for the second successive month, and at a solid pace that was the fastest in 2025 so far.
The pace of output price inflation also quickened in July as firms passed on higher input costs to customers. Here to, the rise was the sharpest in seven months. That said, the increase in charges was only modest.
Although manufacturers remained optimistic that output will increase over the coming year, sentiment dipped to a three month low in July and was well below the series average. Confidence was linked by panellists to hopes for more stable economic conditions, new product launches and new orders. On the other hand, concerns around the impact of US tariffs weighed on the outlook.
Approach
The S&P Global Vietnam Manufacturing PMI® is compiled by S&P Global from responses to monthly questionnaires sent to purchasing managers in a panel of around 400 manufacturers. The panel is stratified by detailed sector and company workforce size, based on contributions to GDP.
Survey responses are collected by Cimigo Vietnam in the second half of each month and indicate the direction of change compared to the previous month. A diffusion index is calculated for each survey variable. The index is the sum of the percentage of ‘higher’ responses and half the percentage of ‘unchanged’ responses.
The indices vary between 0 and 100, with a reading above 50 indicating an overall increase compared to the previous month, and below 50 an overall decrease. The indices are then seasonally adjusted.
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The team at Cimigo are my favourite researchers in South East Asia. They’ve proved adept at tackling the most private and complex personal issues at qualitative research level, not flinching when the client endlessly chopped and changed fieldwork timing, or ramped up the workload without warning. They have recruited the most extraordinarily niche consumers without pause or complaint. Their patience with clients and their flexibility and hard work that went above and beyond what was initially asked of them on two projects relating to sexual behaviour means there is now no other research company we would choose to work with in that part of Asia. The fact they also pulled off a third project for us so well, on men’s relationship with beer and beer advertising, shows they have breadth of expertise— we still quote from the report they produced.
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