HANOI, May 4 (Xinhua) -- Vietnam Purchasing Managers' Index (PMI), which measures the economic health of the country's manufacturing sector, fell to 32.7 in April from 41.9 in March, further signaling a downturn, the report compiled by the London-based global information provider IHS Markit revealed on Monday.

The impact of COVID-19 was most keenly felt with respect to manufacturing production and new orders. Both fell severely during April amid order cancellations and company closures. The decline in overall new business was outpaced by that seen for new export orders, reflecting the effects of the virus in markets all around the world, read the report.

Firms were pessimistic regarding the outlook for production over the coming year. Sentiment dropped amid fears that the impact of the COVID-19 pandemic could last for a prolonged period. Around 40 percent of respondents signaled a negative outlook in April.

"The latest Vietnam manufacturing PMI report highlights the devastating impact that the COVID-19 pandemic and efforts to restrict its spread have had on the Vietnamese manufacturing sector. Whether April proves to be the nadir of the downturn will depend on how firms and their customers respond to an easing of the lockdown and reopening of businesses that have been closed temporarily," commented Andrew Harker, associate director at IHS Markit.

Vietnam's PMI ranked third in Southeast Asia last month, led by Thailand with 46.7 and Singapore with 33.3, according to the survey.

A PMI reading above 50 indicates an expansion of the manufacturing sector compared to the previous month, below 50 represents a contraction, while 50 indicates no change. Enditem

Related

Go to Forum >>0 Comment(s)