A reading above 50 indicates economic expansion, while one below 50 points means the contraction of the manufacturing sector.
The soaring PMI was attributed to the growing consumption demand, which led to an increase in output, new orders and employment.
As evaluated by Nikkei, the output and number of new orders in Vietnam rose sharply in September, with the pace of job creation being at its fastest within the last six months and input prices seeing their largest increase since May 2011.
Commenting on Vietnam’s manufacturing PMI survey, Andrew Harker, associate director at IHS Markit, which compiles the survey, said that increasing customer demand breathed fresh air into the manufacturing sector in the third quarter. New orders rose remarkably, resulting in the faster expansion of output, employment and purchasing activity. Therefore, manufacturers are likely to reap further growth during the final quarter.
However, he also noticed a caution on the reemergence of inflationary pressures, as the cost inflation was at its strongest in six years, amid the pressure on the supply sources of raw materials.
