TOKYO - Vietnam manufacturing growth picks up in April with sharp increase in new orders and output, particularly strengthening firms in export markets, according to an industry gauge.
The Nikkei Vietnam Manufacturing Purchasing Managers' Index, or PMI, rose to 52.7 in April, up from 51.6 in March. A reading above 50 signals an improvement, while one below 50 points to a contraction in manufacturing activity.
With the rise of client demand, production rose at faster rate. Employments growth has been registered in 25 successive months. However sharp input cost inflation contrasts with weak pace of rise in output prices.
Andrew Harker, Associate Director at HIS Markit which compiles the survey, said "the ability of Vietnamese manufacturers to secure new business was at the forefront of the latest PMI survey, with new export business up particularly sharply in April." Harker adds that their "competitive pricing" explains their "will to accept reduced margins in exchange for securing greater volumes of new work."
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