A reading above 50 indicates growth in manufacturing activity.
This is the fourth consecutive month that Vietnam has seen improvement in manufacturing conditions. In November, the reading was 50.3.
In a press release, HSBC said the December PMI had improved as output and employment increased at sharper rates than in the previous month.
New orders increased for the third time in the past four months during December, as manufacturers reported a rise in client demand, HSBC added.
Commenting on Vietnam’s December PMI, economist Trinh Nguyen of HSBC expected 2014 to be a slightly better year for the Vietnamese economy, with the manufacturing sector serving as the main driver.
According to the General Statistics Office, factory output increased by 8.8% in December.
In 2013, the economy of Vietnam expanded by 5.42% and is forecast to grow at a 5.8% clip in 2014.
