The manufacturing sector in Vietnam continued to contract in July, albeit at a slower pace, the latest survey from Markit Economics showed on Monday with a manufacturing PMI score of 45.1.
That’s up from 44.1 in June, although it remains beneath the boom-or-bust line of 50 that separates expansion from contraction.
Some firms have been forced to close temporarily, while others are having to operate with reduced capacity due to social distancing measures.
These effects, alongside a marked drop in new orders, resulted in a further sharp reduction in manufacturing production at the start of the third quarter. The decline in output was softer only than those seen following the initial outbreak of the COVID-19 pandemic in March and April last year.