Confidence in manufacturing enterprises is at its highest level in nearly 2 years

PMI results for the month ending 2025 just announced by S&P Global recorded 53 points, down slightly from 53.8 in November but still above the 50 threshold, reflecting the strong improvement in the health of the manufacturing industry.

The US data analytics firm said business conditions have improved over the past six months. Looking to the future, businesses are most optimistic since March 2024.

“Vietnam’s manufacturing industry ended a tumultuous year on a positive note, as output and the number of new orders continued to increase strongly, and business confidence reached its highest level in 21 months,” said Mr. Andrew Harker, Economic Director at S&P Global Market Intelligence.

Last month marked 8 consecutive months of production output growth. The number of new orders increased for the fourth consecutive month, as some businesses surveyed said customer demand improved. Demands for increased output encouraged companies to hire more people, causing employment to increase for the third straight month.

In 2026, S&P Global Market Intelligence forecasts that Vietnam’s industrial output will increase by 6.7%. Overall, Mr. Andrew Harker assessed the startup manufacturing industry in a positive position. “Manufacturers are optimistic about attracting new orders and being able to increase production capacity,” he stated.

But the short-term obstacle is supply scarcity, which caused the increase in input costs last month to a 3.5-year high. “Hopefully supply disruptions will start to reduce in the coming months, companies will be able to purchase raw materials more easily,” Mr. Andrew Harker added.

In a recent analysis, Mr. Vu Binh Minh, Director of Capital and Currency Business, Capital Markets and Securities Services Division of HSBC Vietnam, said that developments in 2026 are difficult to predict but PMI contributes to revealing encouraging prospects.

According to him, the fulcrum for exports in the coming time is to maintain a diversification strategy. While the US remains the top export destination, Vietnam is now accelerating its efforts to pursue long-term trade opportunities. “Vietnam has been signing a series of trade agreements, as well as upgrading relations with countries, showing that the potential for trade diversification is huge,” he assessed.