HCM CITY (VNS) — The Viet Nam Manufacturing Index (PMI) recently released by HSBC Viet Nam went beyond the neutral 50.0 point in November for the first time since September of last year.
The PMI rose slightly to 50.5 in November, up from 48.7 in October.
The improvement in operating conditions reflected returns to growth in both production levels and new orders during November, according to HSBC.
Output increased at the most marked pace since September 2011, ending a seven-month period of reduction.
Support to production levels was mainly provided by domestic demand in November, as new export order volumes continued to decline.
HSBC's survey respondents mentioned the relatively subdued demand within Asia and the ongoing economic downturn across Europe.
Overall, new business levels returned to growth in November, ending a six-month contraction period.
Although the latest rise in new orders, which includes both export and domestic ones, was modest, the rate of expansion was the strongest since April 2011.
Meanwhile, backlogs of work fell for the eighth consecutive month, suggesting a general lack of pressure on operating capacity across the country's manufacturing sector.
In addition, another rise in staffing levels contributed to the latest reduction in work outstanding across the sector.
The pace of job creation picked up slightly since October, and was the most marked for a year.
Higher production requirements and stronger new business inflows resulted in an expansion of input purchases for the first time since March.
According to the report, this did not prevent a 13th successive monthly decline in stocks of purchases in the manufacturing sector.
The HSBC Viet Nam Manufacturing PMI, comprising five sub-indexes of new orders, output, employment, suppliers' delivery times and stock of items purchased, is based on data compiled from monthly replies to questionnaires sent to purchasing executives in 400 manufacturing companies. — VNS