Fashion
Vietnam’s manufacturing growth hits 15-month high as PMI climbs to 54
The sector reported notable gains in output and new orders, while employment expanded for the first time in over a year. Purchasing activity increased, signalling renewed growth in inventories, and business confidence climbed to a 16-month high. At the same time, inflationary pressures intensified, with both input and output prices rising more steeply than in September, S&P said in a press release.
Vietnam’s manufacturing sector gained strong momentum in October 2025 as the S&P Global PMI rose to 54.5 from 50.4, the sharpest improvement since July 2024.
Output, new orders, and employment expanded, while confidence reached a 16-month high.
Input and output prices rose at faster rates amid supply challenges, though overall optimism remained solid despite inflationary and weather-related pressures.
New orders surged for the second month running, driven by improving domestic demand and a slight rebound in new export business—the first in a year. This led manufacturers to boost production at the fastest pace since July 2024, marking six consecutive months of output growth.
Business confidence strengthened to its highest level in 16 months as firms anticipated continued growth in new orders and planned production capacity expansions. In response to rising workloads, manufacturers expanded their workforce for the first time in over a year. Backlogs of work rose at the quickest pace in more than three and a half years, partly due to adverse weather and flooding disrupting operations.
Flood-related disruptions also led to longer supplier delivery times—the most pronounced since July. Despite supply challenges, firms increased purchasing activity for the fourth consecutive month, leading to the first rise in pre-production inventories in over two years. Stocks of finished goods, however, declined slightly as companies fulfilled strong order volumes.
Input cost inflation accelerated sharply in October, with about 27 per cent of surveyed firms citing higher raw material prices and supply shortages. Output prices also rose more steeply, hitting a 40-month high, as producers passed on increased costs to customers.
Overall, the October survey results suggest that Vietnam’s manufacturing sector entered the fourth quarter (Q4) 2025 with robust growth momentum and rising optimism, though escalating cost pressures and weather-related disruptions remain key risks to watch.
“The Vietnamese manufacturing sector moved up a gear in October, seeing much stronger increases in output and new orders during the month. Positively, the strength of the expansions were sufficient to enable firms to take on extra staff and build inventories of inputs,” said Andrew Harker, economics director at S&P Global Market Intelligence. “Whether these growth rates can be sustained in the months ahead remains to be seen, but there is clearly some positive momentum in the sector at present.”
“Inflationary pressures built again, however, and are now relatively elevated. For now, customers are happy to look through price increases and commit to new orders, but this may start to wane should rates of inflation pick up further,” added Harker.
Fibre2Fashion News Desk (SG)
The uncertainty has increased noticeably, with the ongoing conflict involving Iran weighing heavily on corporate confidence. The escalation has effectively stalled hopes of a near-term economic recovery, particularly as energy markets remain volatile, ifo said in a press release.
In the manufacturing sector, sentiment declined after showing improvement in recent months. The drop was driven largely by a significant deterioration in expectations, while firms also reported a less favourable view of their current business situation. Energy-intensive industries were particularly affected, underscoring the pressure from elevated input costs.
Germany’s business sentiment weakened in March, with the ifo business climate index falling to 86.4 from 88.4 amid rising uncertainty and the Iran conflict dampening recovery hopes.
Manufacturing saw a sharp drop in expectations, especially in energy-intensive sectors.
Trade sentiment also declined due to inflation concerns, although current conditions remained relatively stable across sectors.
The trade sector also registered a decline in sentiment, primarily due to a more pessimistic outlook. Concerns over rising inflation among German consumers have led to weaker expectations in both wholesale and retail segments, signalling subdued demand conditions ahead.
Despite the gloomier outlook, businesses in the trade sector reported a slightly improved assessment of their current situation. This suggests that while present activity remains relatively stable, confidence in future performance is deteriorating.
Fibre2Fashion News Desk (SG)
Operating gross profit surged 35.1 per cent to $886.0 million, while underlying earnings before interest and tax (EBIT) rose 10.5 per cent to $112.8 million. Underlying net profit after tax (NPAT) increased 21.7 per cent to $51.7 million, with statutory net profit after tax (NPAT) up 32.8 per cent to $40.3 million.
Myer has reported strong H1 FY26 results, with total sales rising 24.5 per cent to $2,279.5 million and NPAT up 21.7 per cent to $51.7 million.
Growth was supported by Apparel Brands integration and strategic investments.
Loyalty members reached 5.1 million.
Early H2 FY26 sales rose 1.7 per cent, though the company remains cautious amid macroeconomic pressures and weak discretionary demand.
The company maintained strong financial discipline, with cost of doing business at 27.9 per cent of total sales, within its FY26 target of around 29 per cent. Myer also reported a robust net cash position of $287 million, reflecting strong cash conversion and balance sheet flexibility, Myer said in a press release.
Myer’s ongoing transformation strategy continued to gain traction during the period, particularly through its customer engagement and brand expansion initiatives. The relaunched Myer one loyalty programme reached a record 5.1 million active members, supported by enhanced personalisation driven by AI-led data modelling.
The company also strengthened its product portfolio, introducing new exclusive brands and securing partnerships with global names such as Fenty Beauty, La Mer, Gap, and Topshop.
“Our H1 result reflects momentum across our business as we continue to implement the Myer Group Growth Strategy. Sales growth was achieved both in store and online, and our disciplined cost management allowed us to make targeted investments including in e-commerce, marketing, product, merchandise and supply chain to deliver on our plan,” said Olivia Wirth, executive chair at Myer.
“We achieved our biggest Black Friday on record for Myer Retail, and total sales for the group through the important trading months of December and January were in line with last year—a good outcome that demonstrates the resilience of the business,” added Wirth.
The integration of Myer Apparel Brands progressed steadily, with the company targeting at least $30 million in annualised synergies, alongside an additional $10 million from integrating sass & bide, Marcs, and David Lawrence.
Operationally, Myer continued to optimise its store network, closing 22 stores and opening 12 during the period, while advancing its omni-channel capabilities. The company is set to launch an expanded Myer Marketplace platform in May 2026.
Supply chain efficiency also improved, with 32 per cent of online orders fulfilled through third-party logistics and distribution centres, compared to 13 per cent a year earlier.
In the first seven weeks of the second half (H2), total sales grew 1.7 per cent YoY, with Myer Retail sales up 2.2 per cent, driven by strong performance in home and kids categories.
Despite the positive momentum, the company remains cautious amid macroeconomic uncertainty and pressure on discretionary spending.
“Given the current volatility in the wider macroeconomic environment and the ongoing pressures on discretionary spending, we are more focused than ever on delivering value for our customers,” added Wirth.
Fibre2Fashion News Desk (SG)
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