Vietnamese manufacturing growth accelerates to four-month high

Investing.com – According to the S&P Global Vietnam Manufacturing PMI data released on Monday, Vietnam’s manufacturing sector expanded at its fastest pace in four months in February, driven by stronger production and new orders.

The S&P Global Vietnam Manufacturing Purchasing Managers’ Index (PMI) rose from 52.5 in January to 54.3 in February, marking the eighth consecutive month of improvement in business conditions. Readings above 50 indicate expansion.

Manufacturing output grew rapidly during the month, reaching the highest rate in 19 months. Companies cited early product preparation for customers and stronger customer demand as the main drivers of output growth.

New orders increased for the sixth consecutive month, with the fastest growth since October 2025. Although new export orders remained unchanged from January, they still expanded, with some firms noting instability in international markets.

Improved demand led to larger increases in employment and purchasing activity. Staffing levels rose steadily for the fifth month in a row, the fastest since September 2022.

Some companies hired additional temporary workers. Purchases of inputs grew at the second-fastest rate in 18 months, only behind December 2025.

As products were delivered to customers, finished goods inventories slightly declined, but the decrease was the smallest in over two years. Purchasing inventories increased slightly after falling in January.

Supplier delivery times lengthened slightly again in February, with some companies reporting customs delays when importing goods.

Stronger demand for inputs caused suppliers to raise prices in February. Manufacturing input costs increased sharply, the fastest since June 2022. Some firms also noted rising transportation costs in addition to higher supplier charges.

Due to significant increases in operating expenses, manufacturers raised their selling prices accordingly. The inflation rate remained at the highest level in 45 months, matching the peak reached in January 2026.

Business confidence strengthened for the fifth consecutive month, reaching its highest level since September 2022. Improved market demand and the outlook for continued growth in new orders have made companies more optimistic about output over the next year.

Data was collected from February 4 to 19, 2026.

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