The manufacturing sector in Vietnam continued to expand in March, albeit at a slower pace, the latest survey from S&P Global showed on Friday with a manufacturing PMI score of 51.7.
That’s down from 54.3 in February although it remains above the boom-or-bust line of 50 that separates expansion from contraction.
Central to the slowdown in the rate of improvement overall was the current wave of the COVID-19 pandemic in Vietnam. One of the main impacts on firms came in the form of widespread infections among workers, resulting in a first decline in employment in four months.
Staff shortages meant that firms were unable to maintain production volumes, with output falling for the first time in six months. Inflationary pressures also contributed to the drop in production, which was nonetheless only modest as some firms expanded output in line with higher new orders.