Vietnam Purchasing Managers' Index (PMI), which measures the economic health of the country's manufacturing sector, soared to 51.1 in June from 42.7 in May, the first growth since January, a report by the London-based global information provider IHS Markit said on Wednesday.

The return to growth in June took place as success in suppressing the COVID-19 and greater business confidence helped lead to renewed expansions in output and new orders, according to the report. Purchasing activity also increased but employment continued to fall, said the report.

Panelists reported continued issues in supply chains as a result of the COVID-19 pandemic, particularly with regard to imported items. Suppliers' delivery times lengthened for the seventh consecutive month, albeit to the least extent since January.

The confidence that COVID-19 is under control in Vietnam with increasing new orders boosted optimism that production will grow over the coming year. Sentiment strengthened sharply for the second month running, the highest since January.

"Vietnamese manufacturing sector returned to growth in June thanks to COVID-19 being brought under control and subsequent improvements in customer demand within Vietnam," Andrew Harker, economics director at IHS Markit commented on the survey results, noting that "the main hurdle to a strengthening recovery is likely to be the performance of the global economy, which is still suffering due to the virus."

A PMI reading above 50 shows an expansion of the manufacturing sector compared to the previous month; below 50 represents a contraction; while 50 indicates no change.