HANOI -- The Vietnamese manufacturing sector ended 2023 in contraction mode with the manufacturing Purchasing Managers' Index (PMI) standing at 48.9 in December, remaining below the 50.0 no-change mark, according to an S&P Global Market Intelligence report released on Tuesday.

This signaled a fourth consecutive monthly decline in business conditions in the sector, said the report.

Looking at the whole year, the report said the index rose from 47.3 in November to point to a softer rate of deterioration. The health of the sector worsened through much of 2023, improving only in February and August.

The average PMI reading across the year was the lowest since the COVID-19 pandemic outbreak in 2020, according to the report.

Andrew Harker, economics director at S&P Global Market Intelligence, said, "Attention now turns to the prospects for 2024, with firms still optimistic on balance that output will expand. This led to broad stability of employment and purchasing activity despite the reductions in new orders, as manufacturers attempt to maintain capacity in the hope of better days to come."