The sector saw a return to growth of its output amid a solid expansion of new orders with both employment and purchasing activity also increasing at sharper rates, in combination with an improvement in business sentiment.
The PMI rose to 52.5 in December from 51.4 in November, signalling a solid monthly improvement in the health of the sector at the end of 2017.
A reading above 50 indicates growth in the manufacturing sector.
Respondents of the PMI survey said that higher output was linked to stronger market demand and higher new orders.
Improved customer demand resulted in a solid rise in new orders, the fastest in three months. New business from abroad also increased at a solid and accelerated pace during December.
Improving client demand also helped support the optimism that output will increase over the coming 12 months.
Business sentiment improved to a nine-month high in December.
Rising output requirements contributed to a twenty-first consecutive monthly rise in employment at Vietnamese manufacturers. The rate of job creation was solid and the sharpest since September.
Andrew Harker, Associate Director at IHS Markit, which compiles the survey, said that the Vietnamese manufacturing sector’s return to growth of output in December is welcome news following a few sluggish months.
He added that overall, 2017 was a positive year for the sector, with the average PMI reading the highest since the survey began in 2011, whist noting that industry in Vietnam therefore looks to be in good shape heading into 2018.
