Companies frequently report shortages of shipping containers coupled with scarcity of raw materials could put further pressure on inflation.
The shortage of shipping containers and the scarcity of raw materials have seriously disrupted the supply chain, thereby contributing to the fastest pace of input costs since June 2018.
On February 1, IHS Markit announced that the Purchasing Managers’ Index – PMI for the manufacturing sector of Vietnam reached 51.3 points in January 2021, down from 51.7 in December 2020. This result shows that business conditions improve more slowly by early 2021.
The number of new orders continued to increase, but the growth rate slowed down compared to December. Delivery time was the largest in nearly a decade, only after the last March-April period. Social gap because of COVID-19.
Problems related to shipping and material supply have added to inflationary pressures. Because companies wanted to prevent the escalation of raw material prices, companies increased inventory to buy for 2 consecutive months.
While manufacturers are still confident about the next 12-month outlook, business sentiment has fallen to a five-month low as there are concerns about the next impact of COVID-19. In the case of optimistic firms, this reflects the hope of reducing the impact of the pandemic and plans to expand investment and production.
Commenting on the recent survey results, Andrew Harker, Economic Director at IHS Markit said that Vietnam’s manufacturing sector was struggling to regain its growth momentum in early 2021 when the next effects of the COVID-19 pandemic and a supply chain disruption hampered production.
Survey data shows that while the Vietnamese economy remains one of the fastest growing globally, there are still significant difficulties that at least in the foreseeable future may hinder growth. as spectacular as it was before the pandemic.
According to VTV
