HCM City, June 2 -- Vietnam's manufacturing sector showed signs of recovery in May, following a sharp downturn in April attributed to US tariff policies.

While new orders continued to decline, output rebounded and overall business conditions steadied, with some firms citing a more stable tariff environment.

According to S&P Global, Vietnam's Manufacturing Purchasing Managers' Index (PMI) rose to 49.8 in May from 45.6 in April, remaining just below the 50-point threshold. The reading signals a near-return to stable operating conditions.

Survey data showed that new orders, particularly from overseas, fell again in May amid softer market demand and ongoing tariff-related challenges. The drop in export orders was notably sharper than the o...