Investing. com (Cyprus) quoted the latest data from the global financial and economic information and analysis group S&P Global (USA) on the Purchasing Managers' Index (PMI) of Vietnam's manufacturing sector, showing that Vietnam's manufacturing sector started 2026 with strong growth momentum as output and new orders increased faster in January 2026.
The overall PMI index reached 52.5 in January, slightly down from 53.0 in December but still higher than 50.0 - the level separating between growth and decline. This marks the 7th consecutive month that business conditions in the industry have improved.
Manufacturing output increased sharply in January, with the expansion rate accelerating compared to December. Companies believe this growth is due to increased new orders, and the growth rate is also faster in the context of improved customer demand.
New export orders have returned to growth after a brief pause, although the growth rate is negligible. Manufacturers reported receiving new orders from other Asian economies, including India.
Employment in the manufacturing sector increased for the 4th consecutive month, with the fastest job creation rate since June 2024. Some companies said they have recruited temporary workers to meet production needs.
Purchasing activity also increased as manufacturers met larger production demand, extending the current growth streak to 7 months. However, input material inventories decreased for the first time since September 2025 as raw materials are used to support production.
Business confidence was strengthened for the 4th consecutive month, reaching its highest level since March 2024. 55% of respondents predicted output would increase next year, citing expectations of continuous new order growth and improved market conditions.
Mr. Andrew Harker - Economics Director at S&P Global Market Intelligence - said: "Vietnam's manufacturing industry has had a solid start this year as businesses increase production to meet larger new orders and to meet customer demand in a timely manner. Continuing the growth momentum achieved by the end of 2025, this industry is in a good state to aim for a successful 2026.
However, he noted, a potential obstacle for businesses is inflationary pressure. Inflationary pressure remains high, with input material costs increasing sharply in January, just slightly lower than the highest level in 3 and a half years recorded in December. To cope, manufacturers have increased selling prices at the fastest pace since April 2022.
Andaman Partners (Singapore) assesses that Vietnam is in the top strategic supporting industrial ecosystem in the ASEAN-6 region (including Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam), combining high-tech manufacturing platforms for export, large-scale domestic markets based on resources, and a global logistics - trade center.
The industrial structure in the bloc has a clear difference: Vietnam and Thailand are export-oriented manufacturing platforms with a high proportion of manufacturing (the added value of manufacturing/production - MVA is about 24% of GDP), while Indonesia and the Philippines are more inclined towards the domestic market.
In terms of export scale, Singapore leads (504 billion USD), followed by Vietnam (403 billion USD), Malaysia (331 billion USD) and Thailand (301 billion USD). Vietnam stands out as a "high-tech engine", with machinery and electronics dominating and export growth averaging 4.2%/year in the period 2014 - 2024.
