FINANCIAL TIMES
3-9-18

Vietnamese manufacturing confidence cools on trade fears

Edward White

Business confidence among manufacturers in Vietnam has fallen to its lowest in at least six years as fears of global trade flows, according to an industry survey.

The latest Nikkei-Markit manufacturing purchasing managers’ survey revealed a “marked drop” with business sentiment at its lowest since the survey began in April 2012, according to IHS Markit, which compiles the survey.

The drop in confidence, suggested “concerns around global trade flows may start to impact Vietnamese firms over the coming months”, said IHS Markit principal economist Andrew Harker.

Moody’s analysts said last month that US trade tensions with China are expected to deteriorate this year and dampen global growth in 2019.

Still growth in Vietnam’s manufacturing sector remained at robust levels with the headline index reading at 53.7 in August, down from 54.9 in July, but clear of the 50-point mark separating expansion from contraction. The index also notched its thirty-third month straight of growth. 

“Although seeing a slowdown in growth of output in August, the Vietnamese manufacturing sector appears to be on a sound footing at present thanks to an ability to continue to secure strong inflows of new work,” Mr Harker added.