Vietnam's manufacturing purchasing managers' index (PMI) stayed constant at 54.7 in July 2024, showing an ongoing notable improvement in business conditions within Vietnam's manufacturing industry, according to S&P Global. This rate of growth is the best it has been since November 2018. Significant enhancements were noted in consumer, intermediate, and investment goods sectors.

In July, new orders continued to rise for the fourth consecutive month, with the growth rate slightly below the near-record level seen in June. Panellists attributed the increase in new business to a boost in market demand and a rise in customer numbers. Export orders increased as well, but the growth rate was slower compared to overall new business. A few companies stated that the demand for exports had been hindered by the expensive shipping costs.

In July, manufacturers increased production significantly in response to a sharp rise in new orders. Additionally, the pace of growth in production increased compared to June and was the second highest ever recorded, slightly below the rate seen in March 2011 when data collection began, according to S&P Global.

Although production rose significantly, companies had to use their current inventory to fulfill the demands of new orders. Inventory levels for completed products reached their second-highest decline ever, with only one other instance in February 2014.

Companies endeavored to boost their production by ramping up both their procurement efforts and workforce in the beginning of Q3. The purchasing of roses increased significantly, reaching the highest rate since May 2022. Staffing levels, however, saw only a slight increase and at a slower rate compared to June. In the meantime, work backlogs grew for the second month in a row.