The S&P Global Vietnam Manufacturing PMI rose to 52.4 in July 2025 from 48.9 in June, marking the first expansion in four months and the strongest improvement in nearly a year. The upturn was driven by a renewed rise in new orders, which grew at the fastest pace since November 2024. However, export demand continued to decline for a ninth month amid ongoing US tariffs. In response to stronger domestic demand, output rose for a third straight month, and purchasing activity saw its sharpest increase since August 2024. While employment levels edged closer to stabilizing, firms still faced material shortages and delivery delays, leading to further stock depletion and a rise in input costs—the fastest this year. As a result, output prices rose modestly, ending a period of falling charges. Despite the improvement in activity, business confidence slipped to a three-month low, weighed by trade concerns but supported by hopes for market stability and new product launches.