Vietnam's Manufacturing Industry Faces Challenges Amidst Declining Exports in November
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Hanoi, Dec 2 (NationPress) Vietnam's manufacturing industry faced a deceleration in the growth of production and new orders, primarily impacted by declining exports in November, according to a report released on Monday.
The industry continued to show signs of growth during November; however, the overall business environment improved to a lesser degree compared to October, as stated in the report published by S&P Global Market Intelligence.
The S&P Global Vietnam Manufacturing Purchasing Managers' Index remained above the 50.0 threshold indicating no change in November, marking a second month of improvement in business conditions after the downturn caused by Typhoon Yagi in September, reports Xinhua News Agency.
At a reading of 50.8, it reflected a decrease from 51.2 in October, indicating only a slight enhancement in the sector's overall health.
While some companies increased production in response to higher new orders, others noted that demand remained relatively weak, which resulted in a slowdown in growth.
"The decline in growth was partly due to weakness in global demand, with exports experiencing their largest drop since July 2023," stated Andrew Harker, Economics Director at S&P Global Market Intelligence.
"Businesses were once again cautious about managing costs, contributing to a further reduction in employment, which subsequently limited their capacity to fulfill orders on schedule. It is hoped that demand will stabilize in the upcoming months, providing companies with the confidence to expand their operations," he added.
