Hanoi (VNA) – The Purchasing Managers’ Index (PMI) of Vietnam dippedto 54.1 in April, a slight decline from March’s 22-month high of54.6, reported Nikkei on May 3.

A significant increase of new orders, especially from abroad, helped improveoutput, employment and purchasing activities in Vietnam’s manufacturing sectorduring April.

Meanwhile, there were signs of downward inflationary pressures, with inputcosts and output prices increasing at the slowest paces in six months.

The growth rate of new export orders has also quickened for three successivemonths.

The survey said that the expansion in both new business and new export orderswas due to rising demand from customers.

The number of new orders has increased continuously since December 2015, withthe growth in workload leading manufacturers to increase production in April.

The rise in production allowed firms to complete outstanding business despitethe rise in new orders, with work backlogs falling for the first time since theend of 2016. Stocks of finished goods also decreased.

Employment also increased for the 13th successive month as firms responded tonew order growth. The rate of job creation was slower, but remained solid.

The rise in new jobs continued to impact the purchasing activity of Vietnam’s manufacturers.The swift expansion contributed to a 10th successive monthly rise in stocks ofpurchases. Inventories in anticipation of further new order growth wereincreased as well.

Higher demand for inputs encouraged suppliers to increase their prices duringApril, leading to another monthly rise in input costs. Prices of some goodsfrom China also rose. However, the rate of cost inflation eased to the weakestpoint since last October. Output prices also rose at the slowest pace in sixmonths as charges increased slightly.

Manufacturers reported that delivery duration lengthened for the thirdsuccessive month, partly due to raw material shortages.

In addition, the latest deterioration in vendor performance was the most markedsince January 2016.

The survey complier IHS Markit’s representative Andrew Harker said that “Arecord rise in exports was the key highlight from the latest  Vietnam Manufacturing PMI survey as firms onceagain displayed a good ability to secure new work in international markets.This success fed through to improvements throughout the sector, withproduction, employment and purchasing activity all rising solidly in April. Themanufacturing sector therefore remains a star performer in Vietnam at the startof Q2.” -VNA