The S&P Global Vietnam Manufacturing Purchasing Managers' Index (PMI) rose to 54.5 in October 2025, up from 50.4 in September. This is the best result since July 2024 and a strong signal of expanding manufacturing activity following a period of deceleration. A reading above 50 indicates an expansion in business activity, while a reading below signals a contraction. For Vietnam, this index is traditionally considered one of the key barometers of economic health and a primary indicator of business confidence.
Key growth drivers:
- New order volumes increased for the second consecutive month, demonstrating the fastest growth rate in 15 months;
- Export orders moved into positive territory for the first time in a year, pointing to a recovery in foreign demand;
- Production volumes have been growing for six consecutive months, reflecting increased capacity utilization;
- Employment levels rose for the first time in 12 months as companies resume hiring;
- The business optimism index reached a 16-month high.
According to S&P Global, the surge in activity is supported by stable domestic demand, improved logistics, and shorter delivery times. Companies report stronger outlooks for the end of the year, reinforcing the gradual recovery of the industrial sector following the volatility of 2024. Analysts note that Vietnam remains one of the few manufacturing hubs in Asia where growth is driven not only by exports but also by domestic consumption—creating a solid foundation for continued industrial momentum in 2026.