Vietnam’s economy accelerated for a second straight quarter, as manufacturing picked up, and exports performed better than expected.

Gross domestic product increased 5.33% from a year ago in the three months ending September, compared with a 5% median estimate in a Bloomberg survey. Other data released by the General Statistics Office Friday showed exports — the economy’s key growth engine — returned to growth in September, snapping six months of declines.

The data raise hopes growth could further accelerate amid early signs of China’s recovery stabilizing. Purchasing managers’ survey that showed Vietnamese manufacturing sector returning to growth in August — the first time in six months — also support optimism of demand improving.

Still, one quarter’s performance isn’t enough to conclude that the Southeast Asian economy is out of the woods. S&P Global Ratings expects a full recovery only when global demand picks up and the country gradually resolves its domestic challenges.

One of those challenges include weak credit demand, which has prompted repeated calls from Prime Minister Pham Minh Chinh for a more flexible monetary policy. The nation’s central bank, which has already eased monetary policy four times this year, has flagged limited room to cut rates further.

--With assistance from Tomoko Sato and Nguyen Kieu Giang.