Vietnam PMI November 2024 – manufacturing purchasing managers index

Cimigo
Dec 02, 2024

Production increases in November, but at a slower rate

  • New order growth slows amid a drop in exports.
  • Employment falls for the second month running.
  • Further lengthening of suppliers’ delivery times.

Cimigo Vietnam market research has collected the Vietnam PMI – manufacturing purchasing managers index since 2013. S&P Global compiles the Vietnam PMI S&P Global from responses to monthly questionnaires sent to purchasing managers in a panel of around 400 manufacturers.

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Vietnam PMI findings

Vietnam PMI November 2024

The Vietnamese manufacturing sector remained in growth territory during November, but overall business conditions improved to a lesser extent than in October.

Slower rises in output and new orders were recorded, with the latter impacted by export weakness. Meanwhile, employment continued to fall amid cost-cutting efforts, resulting in a continued accumulation of outstanding business. Input costs increased, but relatively modestly, with output prices rising slightly in response.

The S&P Global Vietnam Manufacturing Purchasing Managers’ Index™ (PMI®) remained above the 50.0 no-change mark in November and signalled a second consecutive monthly improvement in business conditions following the contraction caused by Typhoon Yagi in September.

At 50.8, however, the reading was down from 51.2 in October and pointed to only a modest strengthening in the health of the sector.

In line with the picture for overall business conditions, manufacturing output increased for the second month running, but at a slower pace than in October. Some firms raised production in response to higher new orders, but others reported that demand was relatively muted, leading to a slowdown in growth. Although total new orders increased amid signs of improving demand and the securing of new customers, weakness in international demand undermined overall growth.

In fact, new business from abroad decreased solidly following a slight rise in the previous month, with exports down to the largest extent since July 2023. While output and new orders continued to rise, albeit at weaker rates, employment decreased for the second month running in November. In some cases, firms lowered staffing levels to help reduce costs.

 

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With workforce numbers down, firms again found it difficult to complete orders on time. As a result, backlogs of work increased for the sixth month running, albeit at the slowest pace since June.

Efforts made by firms to limit costs meant that input prices increased at a slightly slower pace in November, and one that was weaker than the average for 2024 so far. Where input prices did rise, panellists linked this to supply shortages and currency weakness.  Similarly, output prices increased only slightly in November, with the rate of inflation broadly in line with that seen in the previous month.

Vietnam PMI Trend November 2024

Manufacturers continued to face lengthening suppliers’ delivery times midway through the final quarter of the year. Lead times were extended for the third month in a row, and to a greater degree than was the case in October. Respondents signalled transportation issues and difficulties for suppliers to source raw materials.

At the same time, firms reduced their purchasing activity for the second time in the past three months, following a slight increase in October. The drop in input buying and issues with the delivery of materials meant that stocks of purchases decreased again, and at a marked pace. Stocks of finished goods were also down as inventories were used to help meet order requirements. The solid depletion was the most marked since July.

Business confidence ticked down for the second month running and was the lowest since January. Manufacturers remained optimistic that output will rise over the coming year, however, with expectations linked to plans for new product launches and business expansions, plus rising new orders.

Approach

The S&P Global Vietnam Manufacturing PMI® is compiled by S&P Global from responses to monthly questionnaires sent to purchasing managers in a panel of around 400 manufacturers. The panel is stratified by detailed sector and company workforce size, based on contributions to GDP.

Survey responses are collected by Cimigo Vietnam in the second half of each month and indicate the direction of change compared to the previous month. A diffusion index is calculated for each survey variable. The index is the sum of the percentage of ‘higher’ responses and half the percentage of ‘unchanged’ responses.

The indices vary between 0 and 100, with a reading above 50 indicating an overall increase compared to the previous month, and below 50 an overall decrease. The indices are then seasonally adjusted.

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Cimigo conducted a large, nationally representative demand forecasting study in Vietnam for us, including a discreet choice component, to assess demand for potential new male contraceptives in development to support funding decisions by The Bill & Melinda Gates Foundation. The research was additionally complex by linking interviews with men and separate interviews with their female partners. The Cimigo team was were professional, knowledgeable and adaptive through the process of understanding our needs and collaborating to find solutions that would work, resulting in a very successful study.

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Cimigo is the research agency that I appreciate for their expertise and customer service. Cimigo understand well the business context for each of project hence they can design the research to best fit with the objectives. The optimization on methodologies, sample size and questionnaire bring the value to the projects I have worked with them. Cimigo can go beyond data and give me valuable insights for each of research projects based on their knowledge and experience with the industry. All of these support me well to navigate the brand strategy in short term and long term.

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We partnered with Cimigo on assessing TET campaign launch focusing on improving booking through our platform. Cimigo, provided its customized campaign evaluation technique based on Cimigo Online Communities that fully meets our requirement in terms of type of respondents and expected timelines. The report provided insightful findings with benchmarks to identify the next course of action for launching the campaign. We will recommend Cimigo team and its Online communities for its quality reporting and scale of coverage.

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Cido have worked with Cimigo in Vietnam for more than 10 years. All our projects, both qualitative and quantitative, have been delivered in a timely manner with a high standard of quality throughout. Cimigo’s client service team has provided great support over the years which has ensured smooth project execution and helped us to deliver work on time and exceed our client’s expectations.

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I have partnered with Cimigo over the past 15 years. Most recently Cimigo engaged us to collaborate on an unusually tough new product development project, which was akin to selling ice to Eskimos. Cimigo bought alive the consumer, her shopping journey, her cooking rituals and potential brand promises. Cimigo inspired our creative team to build alternate brand propositions and accompanying package designs. Cimigo then went back to consumers to evaluate, iterate and optimise these in focus groups. The Doodle team were able to observe this process and subtly adjust the expression of the brand between focus groups. The result of this great collaboration was a winning brand proposition and packaging design that hit consumer needs head on whilst appealing to their hearts.

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We have worked together with Cimigo many times. The findings from Cimigo are factual, accurate & reliable. They deliver value from the voice of our customer so we can easily determine the next step. Working with Cimigo feels like not only building a partnership but a sense of family. Very amazing to work with Cimigo, they always go beyond our expectations.

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Cimigo - The best “Glocal” market research firm in Vietnam with whom we have developed a great partnership since many years. While the quality of research and findings are of top standard, the added advantage being the local insights that Richard and his team are able to provide in helping us make important decisions.

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I respect Cimigo not only because of their dedication, meticulousness, and high-quality services but also how much they care about the local community here. I proposed the idea of doing a survey with the digital young generation on the topic of social impact and leadership. I wanted to identify, shape, and develop our content so that could really speak to the heart of the problems and empower young Vietnamese to take action on social impact in Vietnam. The Cimigo team agreed pro-bono to help without hesitation. The research findings are truly helpful in providing us a deeper understanding of our targeted audiences, what they need and are concerned about in life. The results show us how we can help them to achieve their goals and dreams. It is no longer a shot in the dark!

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Pharmacity started a Brand Health Check with Cimigo in 2020 and we were immediately impressed with their great consultancy and supportive spirit. The study had interesting analysis and insights which helped us efficiently shape the marketing plan and direction moving forward. We are now working with Cimigo on a tracking basis to continuously monitor and foster our brand performance.

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When we were looking to develop one of the worlds the leading economic indicator in Vietnam, the Purchasing Managers’ Index™ (PMI®) Cimigo showed an immediate understanding of our needs and showed their understanding of the Vietnamese market. IHS Markit has now been working with Cimigo since 2013. Every month Cimigo continues to provide high quality data, a representative panel, on time data and great customer service. We look forward to many more years of working together.

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I have worked with CIMIGO on educational research for over 4 months. This is extremely impressive to me by the way CIMIGO approaches, cooperating and supporting me during the research launched. Specifically, the design for both qualitative and quantitative research are practical and logical with accurate questionnaires and appropriate interviews methodology for different respondents. Moreover, the outcomes of this research helps us to recognize our opportunities in the current English Language Training Market and understand profoundly our customer needs, behaviours and expectations when sending their children to us.

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Just to say a huge thank you for all of the film footage. We are absolutely delighted with it all. The Vox Pops are really interesting and have turned out very well – those ladies were great at talking spontaneously. Cimigo did a great job. Thank you for your patience and perseverance with getting this off the ground.

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We partnered up with the Cimigo team on what was a particularly challenging project – we were faced with numerous timeline delays and logistical concerns – yet Cimigo were incredibly accommodating through their patience, flexibility and commitment. Not only were Cimigo supportive during the set up of our project, but we were really impressed by the outputs delivered – Cimigo were insightful, rich and very comprehensive. Cimigo were brilliant partners to work with and we look forward to working with them again.

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Over the last 5 years I have worked with Cimigo on a wide array of projects, ranging from market segmentation to product testing. At all times, I found Cimigo to be swift in response and providing high quality insights and business recommendations applicable to our business. Furthermore, I am satisfied with Cimigo fieldwork quality despite the crunched timeline that we had in some projects. Overall, I highly recommend Cimigo for their professionalism.

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It was a pleasure working with Cimigo. Their expertise in consumer and market research was a significant benefit as they assisted our organization in understanding our market position in more detail and validating our hypothesis in go-to-market strategy. We were more than happy with the findings and would definitely recommend Cimigo.

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Cimigo is not the type of agency that "fill in the template", but it's customized as per the needs and expectations of Client. Cimigo makes research interesting by applying new approaches to address the business issue, for example, it's known by default that product test is CLT, but at Cimigo, we did group debate for deeper understandings and insights and that resulted as a winning product which is selling well in the market. Last but not least, Cimigo makes me understand that research is a journey, not just a project."

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We have worked with Cimigo over 2 projects in Vietnam. Cimigo has proven to be reliable being on top of the projects, managing different stakeholders and business objectives. They are flexible in terms of ways of working and are able to cope with last minute changes. The research findings (Quant + Qual) have helped us understand Vietnamese in a deeper level, allowing us to make clear decisions to be successful in the market. Thank you Cimigo team for supporting us.