Vietnam's manufacturing sector showed modest expansion for the second consecutive month in November, but the pace of growth slowed compared to October due to weakened export demand and ongoing cost-cutting measures. The S&P Global Vietnam Manufacturing Purchasing Managers' Index (PMI) recorded 50.8 in November, down from 51.2 in October, reflecting only slight improvement in business conditions.

Manufacturing output and new orders increased, albeit at a slower pace. While some businesses reported an uptick in orders from new customers, many cited weak demand overall. The most significant decline occurred in export demand, which dropped sharply, marking the steepest fall since July 2023. Cost-cutting strategies led companies to reduce their workforce for the second month in a row, contributing to delays in order completion and causing backlogs to rise for the sixth consecutive month.

Input prices rose moderately, influenced by supply shortages and currency fluctuations, prompting some firms to raise output prices slightly. However, firms scaled back on purchasing activity, leading to a reduction in both raw material and finished goods inventories. Delivery times lengthened for the third straight month, with firms struggling due to transportation challenges and sourcing difficulties. Despite weaker growth expectations, manufacturers remain optimistic about future growth, citing plans for new product launches and business expansions.