The seasonally adjusted HSBC Viet Nam PMI (Purchasing Manufacturing Index) posted 51.0 in April, up slightly from 50.8 in March.— Photo thitruongtaichinh.vn

HCM CITY (VNS)— The seasonally adjusted HSBC Viet Nam PMI (Purchasing Manufacturing Index) posted 51.0 in April, up slightly from 50.8 in March, signalling back-to-back improvements in operating conditions for the first time in nearly two years.

The PMI rose because of faster growth of new orders and employment and a further expansion of production volumes, according to the HSBC report issued yesterday.

Trinh Nguyen, Asia Economist at HSBC, said: "The expansion of manufacturing activity reflects a gradual improvement of domestic demand. The manufacturing sector continues to see growth, as indicative by the rise in employment and output.

"While the economy is weighed down by underperformance of the State sector, the private sector, especially the manufacturing industry, continues to pull its weight to sustain the economy. The year-to-date increase of foreign investment into manufacturing shows Viet Nam's still-strong competitiveness in labour-intensive manufacturing."

Manufacturing output rose for the second successive month in April, albeit at a slightly slower pace than in March.Higher output reflected a further increase in incoming new orders, as companies reported improved sales to domestic clients.

Meanwhile, subdued international market conditions meant that the level of new export business showed only a negligible increase compared to one month earlier.

Manufacturing employment also rose for the second consecutive month during the latest survey period, with job growth linked to the recent mild recoveries in production and new order volumes. — VNS