Growth in output and new orders softened, with production nearing stagnation. New orders rose at the slowest pace in eight months, while export orders declined for a second straight month, reflecting a weaker trade environment, S&P Global said in a press release.

ASEAN manufacturing growth slowed in April, with the S&P Global Manufacturing PMI falling to a nine-month low of 50.7.
Output and new orders weakened, export sales declined further, and employment fell for the first time in eight months.
Supply chain pressures and rising operating costs intensified inflation.
Despite weaker momentum, firms remained optimistic.

Supply-side constraints intensified during the month. Delivery times lengthened to a 17-month high as firms increased purchasing activity, putting pressure on supply chains. As a result, inventories of both inputs and finished goods declined, indicating firms relied on existing stocks to meet demand.

Employment conditions also weakened, with staffing levels falling for the first time in eight months, albeit marginally. Meanwhile, backlogs of work continued to rise, suggesting capacity pressures persist.

Inflationary pressures strengthened further. Input costs rose at the fastest pace since March 2022, prompting firms to increase output prices at the sharpest rate in 49 months.

Maryam Baluch of S&P Global Market Intelligence said ASEAN manufacturing remained in expansion territory in April, though growth momentum weakened as output neared stagnation, demand softened, exports fell faster, and employment declined. She noted that price pressures intensified further amid rising operating costs.

“While manufacturing firms in the ASEAN region remain optimistic about continued production growth in the coming year, the overall trajectory will remain dependent on external factors, notably the ongoing conflict in the Middle East, which is also shaping the inflation picture,” added Baluch.

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Affirming its ’Ba2’ rating, the agency said Vietnam’s institutional quality and governance were improving due to administrative, legal, and public sector reforms implemented since late-2024, and downside risks from US trade measures had eased compared with what was expected earlier.

Moody’s Ratings recently raised its outlook on Vietnam to ‘positive’ from ‘stable’, citing rising confidence in the country’s ability to strengthen its credit profile over the medium term.
Affirming its ⁠’Ba2′ rating, it said Vietnam’s institutional quality and governance were improving due to reforms implemented since late-2024, and downside risks from US trade measures had relatively eased.

Moody’s emphasised that the country’s growth potential continues to be a primary anchor for its credit profile. This is supported by a diversified export base, recovering domestic demand and robust foreign direct investment (FDI) inflows, all of which provide a solid foundation for macroeconomic stability.

Vietnam has demonstrated a high degree of adaptability to global volatility like fluctuating energy prices, rising shipping costs and inflationary pressures stemming from geopolitical tensions. This resilience is underpinned by a stable economic foundation, a positive external balance and a highly diversified trade structure, it noted.

However, risks within the banking system, vulnerabilities in the real estate market and lingering institutional bottlenecks continue to serve as hurdles for a potential rating upgrade in the future, the rating agency cautioned.

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He said the sharp increase in oil and gas prices has fuelled inflationary pressures, weighing on the country’s growth outlook. Despite the downgrade, the government expects economic recovery, projecting growth to rebound to 5 per cent in 2027 and average around 5.5 per cent annually through 2029.

Cambodia has lowered its 2026 growth forecast to 4.2 per cent from 5 per cent due to rising oil and gas prices amid Middle East instability and Thailand border tensions.
Inflationary pressures are weighing on the economy, though growth is expected to recover to 5 per cent in 2027.
Export-driven sectors and tourism remain vulnerable to global volatility.

Cambodia’s economy continues to rely heavily on exports of garments, footwear and travel goods, alongside tourism, agriculture and construction. Authorities cautioned that prolonged global uncertainty could further impact these key sectors and slow overall economic momentum.

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