Investvine-July 2
Manufacturing activity in Vietnam improved to one of the largest extents since the survey began in March 2011, Nikkei Asian Review reported. The Nikkei Vietnam Manufacturing Purchasing Managers’ Index, or PMI, rose to 55.7 in June from 53.9 in May. A reading above 50 signals an improvement, while one below 50 points to a contraction in manufacturing activity.
Output and new orders were accelerated amid general improvements in client demand. This led to a record rise in employment and purchasing activity. Record rise in staffing levels was also seen as a result.
“The Vietnamese manufacturing sector appears to be motoring midway through 2018,” commented Andrew Harker, Associate Director at IHS Markit which compiles the survey. “The current growth phase has been extremely positive for Vietnamese workers, with firms taking on extra staff at a record pace during June.”
However, according to Pham Dinh Thuy, head of the government’s s statistics department, foreign-invested enterprises remain a major contributor to job creation, exports and government revenues.
He predicted that manufacturing activity would slow down in the second half of the year due to the slower-than-expected output of electronics, computers and optical devices, as South Korean manufacturing company Samsung is expected to cut its production and exports. The news came as Vietnam experienced GDP growth of 7.08 per cent in the first half of 2018
