Manufacturing activity in Vietnam continued to decline in April as businesses struggled to find new orders amid weak global demand.

This is according to a report published by S&P Global Market Intelligence on Thursday.

The S&P Global Vietnam manufacturing Purchasing Managers' Index (PMI) fell to 46.7 last month, from the previous month's 47.7 figure, under the 50-mark separating growth from contraction.

For the second consecutive month, factory output and new orders have edged down, and at a faster pace than last month, the data revealed.

The Star reports that businesses reportedly found it more difficult to secure new orders at the beginning of Q2, as export weakness continued amid a downbeat economic outlook.

Furthermore, new orders declined at a faster pace from the previous survey period, whilst new business stemming from overseas markets once again contracted over the month, yet less than in March, the findings showed.

The drop in manufacturing output and new orders also resulted in falls in input purchasing activity and staffing levels, data indicated.

"Companies are still optimistic that output will rise over the coming year, although sentiment has faded as new orders have dropped off in recent months," according to Andrew Harker, Economics Director at S&P Global Market Intelligence.

In addition, with signals that cost inflation was easing in April for the second straight month, raw materials prices increased at the softest pace in close to three years, leading manufacturers to start reducing prices to bolster demand, the report went on to add.

Easing cost pressures and muted demand have allowed manufacturers more breathing space, bringing an end to a three-month run of output price hikes. This has resulted in reduced charges within the consumer, intermediate and investment goods sectors, the report states.