Vietnam manufacturing PMI shows continuous growth in May

The Nikkei Vietnam  Manufacturing Purchasing Managers’ Index, or PMI, fell marginally to 52.0 in May from 52.5 in April. Readings above 50 point to expansion, while those below 50 indicate contraction.

Customer demand improved, and there were rises in new orders both from domestic and overseas clients. Business confidence reached a six-month high.

Fall in the index reflected a drop in employment. 

“There appear to be issues around the supply of labour… with reports of resignations and retirements leading to reduced employment levels in spite of the aforementioned improvements in demand and output requirements,” said Andrew Harker, associate director at IHS Markit which compiles the survey.

Lower PMI “could be reversed in coming months should the demand side remain strong and firms be able to replace departed workers,” Harker added.