S&P Global: Vietnamese factories hard-hit by typhoon in Sep. ’24

Vietnamese manufacturing impacted significantly by Typhoon Yagi in September, which brought heavy rain and flooding, leading to temporary closures and delays in production and supply chains.

Output, new orders, purchasing, and input stocks all declined as a result. However, firms remained optimistic about future production and increased employment. Cost pressures were low, and output prices rose marginally.

The S&P Global Vietnam Manufacturing Purchasing Managers’ Index (PMI) fell below 50.0 in September, indicating a deterioration in business conditions after a period of growth.

The index dropped to 47.3 from 52.4 in August, marking the most significant decline since November last year. Typhoon Yagi caused a notable decrease in manufacturing production, ending a five-month expansion trend. The decline in output was the most severe since January 2023.

Attribution: S&P Global report

Subediting: M. S. Salama