Tue, 18 Jan 2022

HANOI, Dec. 1 (Xinhua) -- Overall business conditions in the Vietnamese manufacturing sector improved for the second month running in November, but renewed worries about the COVID-19 pandemic and associated labour shortages limited growth momentum, a report compiled by the London-based global information provider IHS Markit said Wednesday.

The Vietnam Manufacturing Purchasing Managers' Index (PMI) ticked up to 52.2 in November from 52.1 in October, signalling a second successive modest improvement in business conditions following a period of decline caused by the COVID-19 pandemic earlier in the year.

New orders increased for the second month running as the easing of pandemic restrictions in recent months helped demand in the sector. Moreover, the rate of expansion was solid and the sharpest since April. New export orders also increased again, but only modestly as COVID-19 continued to constrain international trade.

While the Vietnamese manufacturing sector remained in growth territory in November, a renewed rise in COVID-19 case numbers clouded the near-term outlook for firms.

"Business confidence slipped from the previous month, while worries about the health situation continued to deter workers from returning to factories, thereby limiting the extent to which firms were able to raise output," Andrew Harker, economics director at IHS Markit, commented on the survey results, adding the the current wave of COVID-19 infections will continue to impact the sector's outlook until early 2022.

A PMI reading above 50 indicates an expansion of the manufacturing sector compared to the previous month; below 50 represents a contraction; while 50 indicates no change.

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