Vietnam’s manufacturing sees decline in output

Steep disruption: Garment factory workers making men’s suits in a factory in Hanoi. The current wave of the Covid-19 pandemic is having a severe impact on Vietnamese manufacturers. ― AFP

HANOI: The Vietnam manufacturing purchasing managers’ index (PMI) ticked up to 45.1 in July from 44.1 in June, signalling a marked deterioration in business conditions across the sector for the second month in a row.

The latest survey from Nikkei and IHS Markit revealed that the current wave of the Covid-19 pandemic in Vietnam had led to disruptions across the manufacturing sector during July. Rates of decline in output and new orders increased from the previous month and employment was down sharply amid reports of temporary company closures and social distancing restrictions.