Vietnam PMI Signals Strong Manufacturing Growth Amid Inflation

Manufacturing sectors in several Asian economies showed mixed performance trends in late 2025. Vietnam's manufacturing sector experienced a notable growth momentum, with its PMI rising to 54.5 in October, driven by sharp increases in output, new orders, and employment, alongside a business confidence peak not seen for 16 months. Contrastingly, China's manufacturing sector faced challenges despite a surge in exports overall, as export orders declined and price pressures persisted, compounded by concerns over US trade policies and transshipments. Pakistan's manufacturing PMI remained below the neutral threshold at 49.6 in October, reflecting a mild contraction influenced by subdued demand, falling exports, and rising costs, though business sentiment stayed relatively optimistic. Japan's manufacturing sector contracted with its PMI revised downward to 48.2, marking the steepest decline since March 2024 due to weak demand and export trends. Singapore maintained manufacturing expansion with a PMI at 50.0, though growth slowed amid tariff uncertainties and geopolitical risks, especially impacting its electronics sector. These diverse trends highlight the varying impacts of global economic conditions, trade dynamics, and domestic factors on Asian manufacturing industries.