Vietnam PMI May 2025 – manufacturing purchasing managers index

Cimigo
Jun 02, 2025

New export orders fall markedly again in May

  • Total new orders down amid marked reduction in exports.
  • Production returns to growth.
  • Input costs fall for first time in 22 months.

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.

Download the report here

Vietnam PMI findings

Vietnam PMI May 2025

New orders continued to fall in the Vietnamese manufacturing sector in May as US tariffs reportedly impacted demand for exports in particular. That said, output returned to growth and overall business conditions were broadly unchanged as some firms noted greater stability in tariff policy than had been the case in April.

Meanwhile, muted demand conditions contributed to a first reduction in input costs in the sector for 22 months and firms continued to lower their own selling prices. The S&P Global Vietnam Manufacturing Purchasing Managers’ Index™ (PMI®) posted below the 50.0 no- change mark for the second consecutive month in May, but rose to 49.8 from 45.6 in April to signal a near-stabilisation of business conditions in the sector.

As was the case in April, new orders decreased during May, with survey respondents linking the latest fall to tariffs and subdued market demand. The impact on demand was most keenly felt in export markets, with new business from abroad declining at a much faster pace than total new orders. The fall in new export orders was broadly similar to that seen in April, while the reduction in total new business was softer than in the previous month.

While new orders continued to fall, output returned to growth in May following a decline in April. Greater stability around tariff policies reportedly helped to support the renewed rise in production, while capacity improvements were also mentioned.

In a similar vein to the trend in production, business confidence improved in May amid more stable tariff policies. That said, a number of respondents remained concerned about the potential impact of tariffs, meaning that business sentiment remained well below the series average.

Reduced workloads and staff resignations contributed to a further fall in employment in Vietnam’s manufacturing sector. That said, efforts to support production growth meant that the latest decrease was only marginal and the slowest since last October.

Download the report here

Vietnam PMI Trend May 2025

Meanwhile, backlogs of work continued to fall amid lower new orders, but the rate of depletion eased to the weakest in the current five-month sequence of decline. Efforts to expand output meant that manufacturers increased their purchasing activity slightly in May. The increase in input buying ended a two-month sequence of contraction.

Despite the rise in purchasing, stocks of inputs were scaled back again, albeit to the least marked extent since August 2024. Stocks of finished goods were also down, as firms reported a reluctance to hold inventories and the prompt shipment of products to clients. Meanwhile, suppliers’ delivery times lengthened slightly in May as respondents noted slow traffic.

A muted demand environment led some suppliers to offer discounts on their products during May, thereby resulting in a reduction in input costs over the course of the month. The fall in input prices was the first since July 2023. With input costs down, manufacturers continued to lower their own selling prices midway through the second quarter. Charges have now decreased in each of the past five months,
with output prices down modestly again in May. 

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.

Indonesia consumer trends 2025

May 11, 2025

Indonesia consumer trends 2025 highlights eight key reasons why Indonesia is poised for a rebound.

Wrapped in love: Celebrating togetherness during Lebaran with a biscuit tin

Apr 15, 2025

Biscuit tin: a sweet tradition that remains a favourite during Lebaran The Lebaran moment has

Vietnam PMI May 2025 – manufacturing purchasing managers index

Jun 02, 2025

New export orders fall markedly again in May Total new orders down amid marked reduction in