Vietnam PMI October 2024 – manufacturing purchasing managers index

Cimigo
Nov 01, 2024

Manufacturing output returns to growth in October

  • Recovery from impact of Typhoon Yagi gets underway.
  • Renewed increases in output and new orders.
  • Some disruption to supply chains and production remains.

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.

Download the report here

Vietnam PMI findings

Vietnam PMI October 2024

October data showed that the Vietnamese manufacturing sector started to recover from the effects of September’s typhoon, recording renewed increases in both output and new orders. Some of the impacts of the storm and flooding lingered into October, however, limiting output growth and causing supplier delivery delays plus a build-up of outstanding business.

Rates of inflation of both input costs and output prices quickened, but remained muted. The S&P Global Vietnam Manufacturing Purchasing Managers’ Index™ (PMI®) posted 51.2 in October, up from 47.3 in September and back above the 50.0 no-change mark following the disruption caused to the sector by Typhoon Yagi in the previous month.

Business conditions have now strengthened in six of the past seven months, although the improvement in October was only modest. Central to the renewed strengthening of the health of the sector were returns to growth of both production and new orders as the recovery from the typhoon got underway. In each case, however, rates of expansion were softer than in the months leading up to September as some firms continued to face disruption following the storm and associated flooding.

Alongside the rise in total new business, new export orders also increased in October. That said, the rate of expansion was only marginal amid some reports of subdued international demand. With some firms reportedly still operating below full capacity due to the impacts of the typhoon, backlogs of work accumulated for the fifth month  running, albeit to a lesser extent than the two-and-a-half year high posted in September.

Manufacturers continued to use stocks of finished goods to help fulfil orders at a time when production was partly hampered. Post-production inventories decreased at the fastest pace in three months.

Meanwhile, employment ticked down, reversing the rise seen in the previous month. Some firms reported that resignations had caused a drop in their staffing levels.

Vietnam PMI Trend October 2024

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Suppliers’ delivery times lengthened for the second month running in October as storm disruption continued to affect transportation. Lead times lengthened to a lesser extent than in September, however. Purchasing activity returned to growth amid higher new orders and expected increases in production in the months ahead. That said, the rate of expansion was only marginal as some firms reported that they had sufficient holdings of
inputs.

Stocks of purchases continued to fall as inputs were used to support growth of production. That said, the rate of depletion was much weaker than the near-record seen in the previous survey period. Manufacturers reported a rise in input costs amid currency weakness and higher prices for oil, metals and transportation. In turn, firms increased their own selling prices. The rate of charge inflation was only slight, however, as some respondents indicated that competitive pressures had led them to offer discounts.

Rising sales, hopes for stable market conditions and business expansion plans all contributed to positive expectations regarding manufacturing production over the coming year. That said, optimism dipped to a nine-month low and was weaker than the series average. Some firms indicated that uncertainty around the US Presidential Election had dampened confidence.

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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I've had the pleasure to work with Richard and Cimigo over many years and across multiple markets. Cimigo was a key partner in our business decision making process including market entry strategy, brand positioning development, shopper insights, brand equity tracking, and consumer need state segmentation development. The Cimigo team are local market experts who understand consumer culture like no other. I would highly recommend them.

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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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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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Cimigo designed a customer experience programme for Coats that reached into Vietnamese, Chinese and Korean customers across various levels of seniority. Cimigo instilled the importance of the voice of the customer within our executive committee. This led to fundamental changes in our structure, services and speed to market. Significant investments were made behind these improvement programmes, for example in reducing delivery times and in managing specialised custom orders, which in turn have led to improved revenue streams and higher margin sales.

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Cimigo have built and managed both our employee and customer experience programme since 2012. We have a complex suite of services with in-patient, out-patient, surgical, diagnostic, consultative and facilities to account for, all amongst patients who are naturally sensitive regarding their privacy and experience. Yet Cimigo have designed a system to measure customer experience across multiple languages and cultures and direct us in improving this experience. Our net promoter score (NPS) has grown as a direct result of changes implemented based on this direction and continuously listening to patient feedback. The NPS growth correlates directly to new patient numbers and improved profitability, as happier customers drives our business growth.

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As a creative director I have used the services of Cimigo for the past 15 years when developing communications, so I know their style, innovations and resources well. Most recently we tested copy for print, out of home and digital communications to put an Australian colloquialism into a Vietnamese context. A job and budget so small I felt it was highly likely to fall through the cracks. I was astounded at their incredible response. From their advice and style of how we should present the stimulus material, to their cross-reference manoeuvres used in the testing. Their over-delivering response, was to an embarrassing level. We walked away with a clear winner and could present back to our client with confidence and clarity. Cimigo made us look great. Plus they even threw in a few extra insights on the awareness and perception of the product in Vietnam.

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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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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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Cimigo not only delivered an exceptional piece of qualitative research for us, but provided hugely valuable direction when it came to product development and market positioning which we have since implemented. We can’t wait to work with the team again.

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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.

Richard Willis - Director

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.
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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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."
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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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 them.

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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 them to be swift in response and providing high quality insights and business recommendations applicable to our business. Furthermore, I am satisfied with their fieldwork quality despite the crunched timeline that we had in some projects. Overall, I highly recommend Cimigo for their professionalism.

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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 the team were incredibly accommodating through their patience, flexibility and commitment. Not only were the team supportive during the set up of our project, but we were really impressed by the outputs delivered – they 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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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. You did a great job. Thank you for your patience and perseverance with getting this off the ground.

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Cimigo is and will be our strategic research agency. We are happy with your work and the way our projects are handled. You walked the extra mile and we are grateful for that.

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We have worked with Cimigo over 2 projects in Vietnam. Thuong and her team 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 Thuong, Nhu Tran and team for supporting us.