Why Vietnam Beat Its ASEAN Neighbors In Manufacturing

Aug 05, 2015

July manufacturing PMI data shows that Vietnam continues to outshine its southeast Asian neighbors Thailand, Indonesia, Malaysia and Singapore.

Vietnam’s PMI came in at 52.6 in July, ticking up from 52.2 in June. A reading above 50 suggests expansion. Meanwhile, its ASEAN neighbors continue to struggle in the contraction region.

Manufacturing in Vietnam is stronger because it exports to a wider range of regions. The EU and the US are its largest partners, sporting 19% and 16% of its total exports. ” Given that it has signed a FTA with Korea and has been working on a comprehensive agreement with both the US and the EU through the Trans Pacific Partnership (TPP) and the EU Free Trade Agreement (EU FTA), we expect Vietnam to continue to gain market share,” wrote HSBC‘s Trinh D Nguyen.

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