Vietnamese manufacturing sector returned to growth in September as COVID-19 concerns eased in the country, a report compiled by the London-based global information provider IHS Markit has said.
In September, the Vietnam Purchasing Managers' Index (PMI), which measures the economic health of the country's manufacturing sector, rose back to 52.2 in September from 45.7 in August, said the report on Thursday.
Evidence suggested that Vietnam's control over the COVID-19 pandemic was a key factor in the improvements in operating conditions.
Reduced COVID-19 case numbers contributed to stronger client demand, leading to a solid increase in new orders, hence the solid expansion in production, which was the sharpest in 14 months, reports Xinhua citing the report. Business confidence also improved in September, rising sharply from August. The projected growth of new orders is expected to lead to increases in output over the coming year, but a number of firms mentioned that positive expectations were only based on assumptions that the pandemic will remain under control in the country. A PMI reading above 50 indicates an expansion of the manufacturing sector compared to the previous month. One below 50 means a contraction, while 50 indicates no change.