Sign up | Log in



Home  >>   Daily News  >>   Vietnam News  >> Economy  >> Manufacturing sector shows greater stability
NEWS UPDATES Asean Affairs   5 September 2013  
Manufacturing sector shows greater stability

The Purchasing Managers' Index survey for August released yesterday by HSBC Vietnam signalled a near stabilisation in the country's manufacturing sector.

"Although output and new orders continued to fall, they did so at marginal rates," the report said.

"There was a survey record increase in employment as manufacturers signalled positive expectations for activity."

Profitability remained under pressure, however, as output charges were little changed but prices rose at the sharpest pace since March. Rising transportation costs were widely reported.

The headline seasonally adjusted PMI recorded 49.4 in August, an improvement on July's 48.5 and the best reading since April but, by remaining below the 50.0 no-change mark, signalled a marginal deterioration in operating conditions.

New orders received by Viet Nam's manufacturers continued to fall in August, extending the current run of contraction to four months.

Market activity remained slow, according to respondents, and customer demand, soft. But there were reportedly pockets of growth, meaning new work only contracted marginally.

New export orders also continued to decline, falling marginally for a third successive month. Export market conditions remained tough but showed signs of stabilising.

Manufacturing volumes fell for a fourth straight month in August as new orders declined. But, in line with the sales trend, the degree to wich output fell was modest.

Manufacturers were again able to make inroads into their backlog during the latest survey period, causing it to fall for the 17th successive month and again at a marked pace.

This also reflected a depletion of inventories. Warehouse stocks fell marginally for the first time in three months. Additional capacity also helped companies to keep on top of workloads.

Employment rose for the first time since April, with the rate of growth the sharpest in the survey history, reflecting the positive forecasts for production and orders.

Profits came under further pressure, reflective of two factors: Prices changed little due to competitive pressures, efforts to stimulate sales, and client requests for reduced prices but costs rose at a marked and accelerated pace.

Inflation was driven also by a rise in the price of oil and associated derivatives.

Commenting on the survey, Trinh Nguyen, Asia Economist at HSBC, said: "Viet Nam manufacturing activity continues to be hammered by weak external demand and sluggish domestic conditions, though the pace of contraction is significantly reduced.

"Global demand is expected to pick up towards year-end thanks to a recovery in the US, the Eurozone, Japan, and China. This should help the manufacturing sector. However, with input prices rising and domestic conditions still weak, we think the recovery process in Viet Nam continues to be bumpy."

The HSBC Vietnam Manufacturing PMI is based on data compiled from monthly replies to questionnaires sent to 400 manufacturing companies.

Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below

Today's  Stories    5  September 2013 Subsribe Now !
• SGX derivatives volumes continue to grow in August Subcribe: Asean Affairs Global Magazine
• Rupiah suffers worst plunge in the NDF market since 2009
Research Reports
on Thailand 2007-2008

•Textiles and Garments Industry

•Coffee industry

•Leather and footwear industry

•Shrimp industry

• ASEAN, China hold joint trade promotion
• China's Li stresses ASEAN trade, downplays rows
• Fuel price hike to cut fiscal deficit, says Najib
• Manufacturing sector shows greater stability
Asean Analysis           5 September 2013 Advertise Your Brand
• Asean Analysis- September 5, 2013
US- ASEAN Militaries continue cosy ties
• Asean Weekly:The Biweekly Update 23 August 2013
Asean Stock Watch     4 September  2013
• Asean Stock Watch-September 4, 2013 

ASEAN NEWS UPDATES      Updated: 04 January 2011

 • Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent
• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore • Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline • Vietnamese PM projects 10-year socioeconomic plan


This year in Thailand-what next?

AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More






1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

| Terms of Use | Site Map | Privacy Policy  | DISCLAIMER |

Version 5.0
Copyright © 2006-2017 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand