Vietnam’s Manufacturing Output Returns to Growth in the Final Month of 2020
PMI data showed that the Vietnamese manufacturing sector ended 2020 on a positive note, as the temporary disruption from the storm in November gave way to growth in output, new orders, and employment in December. The average PMI reading over the fourth quarter was the highest of the year, suggesting building momentum heading into 2021.
December witnessed a significant recovery in manufacturing output, employment situation, and purchasing activity
A return to growth for manufacturing output as production has new growth in orders
New business increased for the fourth consecutive month and at a solid pace that was faster than that seen in November 2020.
- Customer demand is improving and also strengthening in international markets, leading to an increase in new export orders for the first time in three months.
December saw employment rise as higher new orders resulted in increased production requirements, together with firms expanding their staffing levels.
However, the survey pointed out difficulties in securing inputs and rising costs.
Supply shortages and disruptions caused by the Covid-19 pandemic prolonged the delivery times of suppliers.
A sharp increase in input prices due to the challenges in securing raw materials
Manufacturers remained confident that output would increase in 2021, with respondents expecting less disruption from the pandemic. With exclusive, favorable conditions for growth, Vietnam is a golden land offering plentiful promising business opportunities. Interested in investing in Vietnam? Let Broad Avenue be your partner in advising business opportunities and mapping out strategies to maximize your profits. Contact us today or follow our Facebook and LinkedIn page to not miss out on any crucial information.