Vietnam Manufacturing Momentum Strengthens Despite Severe Typhoons and Floods: S&P Global Report Signals Positive Growth

Vietnam’s manufacturing industry has demonstrated notable resilience by maintaining strong performance despite severe storms and supply chain disruptions, according to the latest S&P Global report. The Purchasing Managers’ Index (PMI) for November remained in expansion territory, signaling continued improvement in business conditions amid challenges.

This sustained growth trend highlights the strength and adaptability of Vietnam’s manufacturing ecosystem, which has positive implications for industrial investment, export competitiveness, and broader economic momentum.

Sustained Expansion in Manufacturing Activity

Despite adverse weather conditions and logistical hurdles, Vietnam’s manufacturing sector expanded for the fifth consecutive month in November. The S&P Global Vietnam Manufacturing PMI registered 53.8 points, comfortably above the 50.0 mark that separates expansion from contraction. This demonstrates ongoing improvement in output levels, new orders, and overall business conditions.

Sustained PMI values above 50 suggest that domestic and international demand continues to support production expansion. The expansion streak also reinforces optimism within the sector as firms adjust to climate and market dynamics.

Indicators of Growth: Output, New Orders & Employment

Severe typhoons and floods in late 2025 had a noticeable impact on production schedules and supply chains. Some firms faced delays in meeting project timelines due to storm-related disruptions. However, the fact that output still increased highlights the sector’s adaptability and the effectiveness of business continuity plans across multiple industries.

The ability to sustain growth in such conditions underscores the resilience of Vietnam’s industrial base and the long-term attractiveness of its manufacturing landscape to investors and global partners.

Strengthening Export Demand and Global Confidence

The rise in export orders, particularly from key markets such as China and India, reflects increasing global confidence in Vietnamese manufacturing capacity. This trend is crucial for a country that continues to integrate deeply into global value chains and aims to diversify its export base beyond traditional markets.

Such momentum supports broader economic strategies and reinforces Vietnam’s appeal as a competitive production hub — important drivers for sustainable foreign direct investment (FDI) and industrial property demand. For example, high FDI inflows into manufacturing have been reported, with electronics and machinery sectors capturing significant investment share in 2025.

Implications for Industrial Real Estate and Investment Climate

Vietnam’s ongoing manufacturing expansion presents compelling opportunities for stakeholders in industrial real estate. Key implications include:

• Rising Demand for Industrial Space: Expansion in production and export orders typically increases demand for factories, warehouses, and logistics facilities — especially in strategic hubs like the North and South industrial corridors.
• Investor Confidence: A consistently expanding PMI fosters confidence among global investors seeking stable manufacturing bases and scalable production capacity.
• Supply Chain Integration: With stronger export demand, industrial parks and logistics zones become more attractive for tenants prioritizing connectivity and reliability.

Sustained Growth Signals Continued Opportunity

Vietnam’s manufacturing sector has demonstrated remarkable momentum and resilience, maintaining robust growth despite external pressures and operational headwinds. The latest S&P Global PMI data points to continued expansion in production, new orders, employment, and export demand, all positive indicators for the country’s industrial competitiveness.

For industrial real estate professionals, investors, and business leaders, these trends underscore a strong foundation for future opportunities across manufacturing, logistics, and related property markets. As Vietnam navigates global supply chain shifts and rising demand, the country stands out as a resilient and promising centre for industrial growth — now and into the coming years.

For investors seeking to capture opportunities, Core5 Vietnam provides more than facilities , we are your strategic partner in long-term success.

Discover more About Us

Interested in expanding your business in Vietnam? Contact Core5 Vietnam today.