HSBC notes signs of broad-based recovery in Vietnam's trade cycle

11 Mar '24

1 min read

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Insights

HSBC has noted signs of a broad-based recovery in Vietnam's trade cycle, with marginal improvements textiles, footwear and machinery sectors that were earlier lagging.
Leading export indicators indicate the recovery momentum will likely continue.
The latest manufacturing PMI was in expansion territory on the back of positive output, new orders and employment.

Based on statistics of the first two months this year, HSBC recently noted signs of a broad-based recovery in Vietnam’s trade cycle, with marginal improvements in sectors like textiles, footwear and machinery that were earlier lagging.

In its report titled ‘Vietnam at a Glance’, the Hong Kong-based banking and financial services institution noted that leading indicators for the exports sector indicate the recovery momentum will likely continue.

The latest manufacturing purchasing managers’ index remained in expansion territory on the back of positive output and new orders, as well as employment. The gap between new orders and inventory—a useful leading indicator of production—has shown solid improvements in momentum, a Vietnamese news outlet reported citing the HSBC document.

Government statistics show the country’s foreign trade is estimated at $113.96 billion in the first two months this year, a year-on-year (YoY) increase of 18.6 per cent.

Vietnam earned $59.34 billion from exports during the period—up by 19.2 per cent YoY, and its imports were worth $54.62 billion—up by 18 per cent YoY.

Fibre2Fashion News Desk (DS)