Vietnam PMI falls to 45.6 in April amid US tariff impact
Vietnam's manufacturing sector suffered a renewed downturn in April 2025, as fresh US tariffs triggered sharp declines in output, new orders, employment, and purchasing activity, according to S&P Global. The Vietnam Manufacturing PMI fell to 45.6 from 50.5 in March, indicating the steepest contraction since May 2023.
The imposition of US tariffs and global market uncertainties led to the fastest drop in new orders in nearly two years, while export demand fell for the sixth consecutive month. Business confidence hit a 44-month low, with manufacturers deeply concerned about the impact of tariffs on future output, S&P Global said in a press release.
"The imposition of tariffs by the US knocked the Vietnamese manufacturing sector into contraction during April, with firms seeing marked reductions in new orders, exports and production. What's more, the potential for further disruption to the sector as a result of additional tariffs meant that business confidence slumped and was one of the lowest on record. In what is a fluid situation, it will be important to keep tracking the S&P Global PMI data for Vietnam over the coming months to see how business conditions evolve,' Andrew Harker, economics director at S&P Global Market Intelligence, said.
Employment levels fell for the seventh month in a row, with April marking the sharpest job cuts since late 2021. Purchasing activity and inventory levels also slumped, and although input costs edged up slightly, firms continued to cut selling prices—now down for the fourth straight month.
Vietnam's manufacturing sector contracted sharply in April 2025 as new US tariffs drove steep declines in output, orders, exports, and jobs. The PMI fell to 45.6, the lowest since May 2023. Business confidence hit a 44-month low, while employment and purchasing fell. Despite rising input costs, firms cut prices for a fourth month, signalling continued pressure ahead.
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