Vietnam manufacturing expands in Nov despite storm-hit supply chains

The PMI posted 53.8, easing from 54.5 in October but marking a fifth consecutive month of strengthening operating conditions.

A third straight month of rising new orders underpinned continued production growth, though both softened from October’s rates. Export orders accelerated sharply, reaching a 15-month high, driven by stronger demand from mainland China and India, S&P Global said in a press release.

Some firms reported that storms restricted production capacity, yet output still increased for the seventh month running.

Extreme weather had its greatest impact on supply chains. Suppliers’ delivery times lengthened markedly to the worst level since May 2022, while backlogs accumulated for a second month, at the sharpest pace since March 2022.

Input cost inflation rose sharply—at the second-fastest rate since July 2024—as raw-material supplies tightened. Firms passed these costs on, keeping output price inflation solid despite easing from October.

Manufacturers continued hiring, with employment rising for the second month and at the strongest rate in nearly 18 months. Most newly hired workers were taken on full-time.

To meet production needs, firms increasingly tapped existing inventories, leading to a more pronounced decline in finished-goods stocks. Input inventories increased slightly as purchasing activity rose for a fifth month and at a four-month high.

Nearly half of surveyed firms expect output to rise over the coming year, supported by anticipated improvements in demand and expectations of more stable weather. Business sentiment climbed to a 17-month high.

Andrew Harker, economics director at S&P Global Market Intelligence, said: “The pick-up in growth seen in October was largely sustained through to November as the Vietnamese manufacturing sector looks to be enjoying a positive end to the year. While rates of expansion in output and new orders eased, firms took on extra staff at a stronger pace in order to deal with workloads.

“Growth was recorded despite reports of disruption to supply chains and production lines caused by stormy weather in recent weeks. There is the potential, therefore, for continued growth in the months ahead as firms catch up with delayed projects.”

ALCHEMPro News Desk (KD)