Vietnam Manufacturing

The strong growth in Vietnam's manufacturing sector in June continued in July, with a substantial rise in new orders driving production to a near-record high.

Factory expansion plans, the launch of new products, and the prospect of continued growth of new business all supported confidence in the year-ahead outlook for production.

The solid expansion in new orders helped lead to a return to growth of manufacturing production in Vietnam.

This toolkit is unique in Vietnam, featuring a pillar dedicated to assessing enterprises' digitalization of their green transition and adopting environmentally friendly business practices.

The services sector has been a driver of economic support, with policies aimed at stimulating domestic consumption and promoting tourism to sustain growth in this sector.

Vietnam encourages Swiss investment in high-priority fields such as finance banking, insurance, manufacturing and processing, pharmacy, renewables, and tourism.

Hopes for improvements in market demand and new orders, alongside confidence that the Covid-19 pandemic will remain under control, supported optimism in production prospects for the coming year.

Business sentiment continues to improve with 57% of respondents predicting that output will increase over the coming 12 months, against 9% that expected a decrease.

Manufacturers remained optimistic that production will increase in the next 12 months.

The bright spot in the latest PMI survey was employment, which increased at the fastest pace in three and a half years.