Vietnamese manufacturing PMI moderates in July

The Hanoitimes - According to the latest data released by Nikkei market, the Vietnam`s performance indicator of the manufacturing sector came the second place at 52.4 and Thailand took third place at 50.6 among ASEAN countries in December last year. The Nikkei Vietnam Manufacturing Purchasing Managers’ Index (PMI), a composite performance indicator of the manufacturing sector, posted 52.4 in December, down from November’s 54 but remaining a signal solid monthly improvement in the sector’s health. According to the latest PMI data released by Nikkei market, in December, among ASEAN countries, the Philippines ranked the first place at 55.7; the second place belonged to Vietnam at 52.4; and Thailand took third place at 50.6. Myanmar posted 49.4, Indonesia was at 49, Malaysia at 47.1 and Singapore at 43.3. The Nikkei Vietnam Manufacturing PMI is based on data compiled from monthly responses to questionnaires sent to purchasing executives in around 400 industrial companies. The panel is stratified by GDP and size of company workforce. Photo for illustration The manufacturing sector is divided into eight broad categories: basic metals, chemicals and plastics, electrical and optical, food and drink, mechanical engineering, textiles and clothing, timber and paper, and transport. Vietnam’s PMI recorded a solid rise because business conditions improved on the back of rises in new orders, output and employment. The rate of expansion in purchasing activity was important among efforts to build inventory reserves. Input costs continued to grow strongly, and firms responded by increasing charges at one of the fastest rates in…... [read more]

PMI continues growth, business conditions improve Phuong Thao HCMC – The Vietnam Manufacturing Purchasing Managers’ Index (PMI) posted 52.4 in December compared to November’s reading of 54, still signaling a solid monthly improvement in the health of the local manufacturing sector, according to a Nikkei report released on January 4. The sector ended 2016 on a positive note with business conditions improving on the back of increases in new orders, output and employment. Manufacturing operating conditions have now strengthened in each of the past 13 months. Manufacturing output rose for the 12th time in the past 13 months during December, albeit at a weaker pace than in the previous month. According to respondents, the higher number of new orders was the main factor leading to production growth, the report said. Andrew Harker at IHS Markit, which compiles the survey, said the solid growth in the final month of 2016 completed a generally positive year for the Vietnamese manufacturing sector. Local firms continue to be able to secure new work, with a joint record rise in new export business a key highlight from the latest survey. The sector, therefore, seems in good shape heading into 2017, wherein IHS Markit forecasts a rise in gross domestic product (GDP) of 6.3%. Meanwhile, new export orders rose at the fastest pace in the survey’s history, equal to the first month of data collection in March 2011. Those panelists reporting higher new orders linked this to improving client demand. Although higher new orders put pressure…... [read more]

LONDON: European stock markets drifted on Wednesday (Jan 4) as traders awaited clues from the Federal Reserve on the outlook for US interest rates. But after spending most of the day in the red, London's FTSE 100 pushed into positive territory just before the closing bell, setting a fifth straight record closing high. In the eurozone, Frankfurt's DAX 30 index and the Paris CAC 40 both ended the day unchanged. Wall Street firmed, but nearing midday was still over 80 points short of the landmark 20,000 point on the Dow. The dollar was lower against major rivals following a robust showing ON Tuesday. "The Federal Reserve raised interest rates for only the second time in a decade in December and the only time in 2016 but warned that three more (rate hikes) could follow this year," noted Craig Erlam, senior market analyst at Oanda trading group. "While this exceeded market expectations at the time, investors have since been undeterred by more rate hikes which would suggest there's more faith in the recovery, aided most likely by the expectation of fiscal stimulus from the Trump administration." Ahead of the publication of the minutes of the Fed's December meeting on Wednesday, investors digested a survey showing that eurozone business activity hit its highest rate since May 2011 in December. Data monitoring company IHS Markit said its report suggested the 19-nation eurozone economy was set for solid growth but nothing could be guaranteed as "political uncertainty dominates" - an apparent reference to the…... [read more]

The Vietnamese manufacturing sector ended 2016 on a positive note, with the Nikkei Viet Nam Manufacturing Purchasing Managers’ Index (PMI) coming second among the top three PMIs in ASEAN region. Nikkei Viet Nam Manufacturing Purchasing Managers’ Index (PMI) ranked second among the top three PMIs in ASEAN region in December, 2016. The Nikkei Viet Nam Manufacturing PMI, a composite performance indicator of the manufacturing sector, posted 52.4 in December, down from November’s 54 but continuing to signal solid monthly improvement in the sector’s health. As per the latest PMI data released by Nikkei market, in December, among ASEAN countries, the Philippines was at first place at 55.7; the second place went to Viet Nam at 52.4; and Thailand took third place at 50.6. Myanmar posted 49.4, Indonesia was at 49, Malaysia at 47.1 and Singapore at 43.3. Viet Nam’s PMI saw solid growth because business conditions improved on the back of rises in new orders, output and employment. The rate of expansion in purchasing activity was substantial amid efforts to build inventory reserves. Input costs continued to rise sharply, and companies responded by increasing charges at one of the fastest rates in the past five-and-a-half years. “Solid growth in the final month of 2016 completed a generally positive year for the Vietnamese manufacturing sector,” said Andrew Harker from IHS Markit, which compiles the survey. “Local firms continue to be able to secure new work, and the joint-record rise in new export business is a highlight in the latest survey. The…... [read more]

Viet Nam News HÀ NỘI - The Vietnamese manufacturing sector ended 2016 on a positive note, with the Nikkei Việt Nam Manufacturing Purchasing Managers' Index (PMI) coming second among the top three PMIs in ASEAN region. The Nikkei Việt Nam Manufacturing PMI, a composite performance indicator of the manufacturing sector, posted 52.4 in December, down from November's 54 but continuing to signal solid monthly improvement in the sector's health. As per the latest PMI data released by Nikkei market, in December, among ASEAN countries, the Philippines was at first place at 55.7; the second place went to Việt Nam at 52.4; and Thailand took third place at 50.6. Myanmar posted 49.4, Indonesia was at 49, Malaysia at 47.1 and Singapore at 43.3. Việt Nam's PMI saw solid growth because business conditions improved on the back of rises in new orders, output and employment. The rate of expansion in purchasing activity was substantial amid efforts to build inventory reserves. Input costs continued to rise sharply, and companies responded by increasing charges at one of the fastest rates in the past five-and-a-half years. "Solid growth in the final month of 2016 completed a generally positive year for the Vietnamese manufacturing sector," said Andrew Harker from IHS Markit, which compiles the survey. "Local firms continue to be able to secure new work, and the joint-record rise in new export business is a highlight in the latest survey. The sector seems in good shape heading into 2017, and IHS Markit forecasts a rise in…... [read more]

Job creation quickened for the eighth month straight in November after new orders prompted manufacturers to take on extra staff. Vietnam reported strong growth in the manufacturing sector in November as new orders increased the most in 18 months. The headline Nikkei Vietnam Manufacturing Purchasing Managers’ Index, or PMI, an indicator of manufacturing performance, rose to 54.0 in November from 51.7 the previous month, according to survey data released on Thursday. Any reading above 50 indicates expansion in the sector. The improvement was the strongest for a year-and-a-half. New business increased at the fastest rate since May 2015 and new export orders also rose at a faster pace. Rising orders also urged manufacturers to take on extra staff, with the rate of job creation quickened for the eighth month straight. Both input costs and output prices increased at a faster pace in at least 30 months. Andrew Harker from IHS Markit, which conducts the survey, said the manufacturing sector “looks set for a strong end to 2016.” “One potential headwind going forward could be the re-emergence of inflationary pressures,” he said. IHS Markit has forecast GDP growth of 5.9 percent in Vietnam in 2016, but said the rise will quicken to 6.3 percent next year. The World Bank and the Asian Development Bank have both lowered growth projections for Vietnam this year to 6 percent after the country’s economy cooled in the first half following the impacts of drought on agricultural production and falling industrial growth. The government is expecting…... [read more]

Manufacturers around the globe performed strongly in November, but concerns about the protectionist leanings of U.S. President-elect Donald Trump and an OPEC-induced oil price rally could curtail future growth. Manufacturers around the globe performed strongly in November, but concerns about the protectionist leanings of U.S. President-elect Donald Trump and an OPEC-induced oil price rally could curtail future growth. Factories across Asia and Europe ramped up activity and data due later on Thursday from the United States are expected to show manufacturers in the world's largest economy also pushed harder on the accelerator. But some analysts cautioned November might be as good as it gets as the effects of vast monetary stimulus from central banks wear off. "The strength in PMI numbers is unlikely to be sustained as much of it can be explained by previous stimulus measures," said Julian Evans-Pritchard at Capital Economics. Policymakers at the European Central Bank are expected to announce an extension to their asset purchase programme when they meet next week even after euro zone manufacturers enjoyed their best month in November since the start of 2014 and inflationary pressures, while still mild, picked up. IHS Markit's final manufacturing Purchasing Managers' Index for the euro zone chalked up its highest reading since January 2014 in November, registering 53.7, in line with an earlier flash estimate and ahead of October's 53.5. Anything above 50 indicates growth. But British manufacturing growth cooled unexpectedly as factories grappled with soaring costs caused by the slump in sterling after Britain voted…... [read more]

New manufacturing order up, output broadly stable Dinh Duy HCMC – Business conditions in the Vietnam manufacturing sector continued to improve in October but there was a pause in output growth during the month, said a Nikkei report released on November 1. The headline Nikkei Vietnam Manufacturing Purchasing Managers’ Index (PMI), a composite single-figure indicator of manufacturing performance, dipped to 51.7 in October from 52.9 in the previous month. Nevertheless, the health of the sector has now strengthened in each of the past 11 months, the report said. Key to the latest improvement in business conditions was a further pick-up in new orders at Vietnamese manufacturers amid reports of rising client demand in both domestic and export markets. Moreover, the rate of growth in total new business quickened to a four-month high. Despite a solid increase in new orders, firms saw production levels broadly stabilize, thereby ending a 10-month sequence of growth. Falls in output were seen in the intermediate and investment goods sectors, but consumer goods production increased. Andrew Harker at IHS Markit, which compiled the survey, said while output growth paused in the Vietnamese manufacturing sector during October, a number of other series from the latest PMI survey were broadly positive, suggesting the stabilization of output may just be a temporary blip. Firstly, new order growth picked up to a four-month high as firms reported improving client demand. In addition, firms ramped up their purchasing activity in order to support a record increase in stocks of purchases as…... [read more]

New manufacturing orders post slower growth Dinh Duy HCMC – Business conditions in the Vietnamese manufacturing sector continued to improve in August, boosted by faster rises in employment and stocks of purchases, but growth in output and new orders eased again during the month, according to a Nikkei report released last week. The headline Nikkei Vietnam Manufacturing Purchasing Managers’ Index (PMI) rose to 52.2 in August from 51.9 in July, signaling a modest improvement in operating conditions compared to the previous month. The health of the sector has strengthened in each of the past nine months. Andrew Harker at IHS Markit, which compiles the survey, said the latest PMI data for Vietnam are something of a mixed bag again. The data are generally positive, with rates of expansion in employment and stocks of purchases particularly strong. On the other hand, output and new orders increased at weaker rates, suggesting that client demand is showing signs of softening. Adding to this picture is the fact that firms often had to offer discounts in order to secure new work. “IHS Markit is currently forecasting gross domestic product (GDP) growth of 5.85% for Vietnam in 2016 and these latest figures suggest that the manufacturing sector will continue to make a solid contribution to the overall economy,” Harker said in the report. August’s increase in output was the weakest in five months, but extended the current sequence of growth which began in December last year. Investment goods producers recorded a rise in production, but…... [read more]

The new target is 6.2-6.5 percent, down from the initial 6.7 percent, after weak growth in agriculture and mining dragged down the economy in Q3. The Vietnamese Prime Minister Nguyen Xuan Phuc has officially admitted that Vietnam will probably miss its economic growth target of 6.7 percent this year. The annual forecast has been lowered to between 6.2 percent and 6.5 percent, he said during a two-day cabinet meeting which ended on Tuesday . The economy would need to expand 7.1-7.3 percent in the final quarter to achieve the new full-year goal, Phuc said at the meeting. “The target is high and challenging but it is not unattainable,” he said. Phuc took office in April when the country was struggling with the worst drought in almost a century. Then came the mass fish deaths along the central coast. Adverse weather conditions, along with the environmental disaster, have put the brakes on an economy that grew 6.68 percent in 2015. Economic growth was 5.92 percent in the January-September period, much lower than the 6.53 percent rate seen a year ago, according to official statistics. Weak growth in agriculture and mining dragged down the economy in the third quarter, according the statistics office. The mining sector continued its losing stretch, contracting 6.8 percent in the quarter compared to a year ago, due to low global commodity prices, government data show. “GDP growth in 2016 will be lower than the target but how much lower will very much depend on the mining sector,”…... [read more]




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