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Prime Minister Pham Minh Chinh (R) receives outgoing US Ambassador to Vietnam Marc Knapper in Hanoi on January 10. (Photo: VNA)

Vietnam wishes to continue strengthening Comprehensive Strategic Partnership with US: PM

Vietnam attaches great importance to its relations with the US and wishes to continue strengthening their Comprehensive Strategic Partnership for the benefit of the two countries' people and for peace, cooperation and development in the region and the world, Prime Minister Pham Minh Chinh said on January 10 while receiving outgoing US Ambassador to Vietnam Marc Knapper.

At the meeting, the Government leader highly appreciated the close coordination from Knapper and the US Embassy, which contributed to major milestones in bilateral relations over the past four years, particularly the upgrade of ties to a Comprehensive Strategic Partnership, laying a solid foundation for a new phase of development.

PM Chinh affirmed that Vietnam consistently pursues a foreign policy of independence, self-reliance, peace, friendship, cooperation, multilateralization and diversification of external relations, while maintaining its defence policy of the “Four No's”.

He noted that in the time ahead, Vietnam and the US should continue to promote exchanges of delegations at all levels, thereby consolidating political trust and creating momentum to further enhance bilateral ties.

Emphasizing that economic and trade cooperation is a key pillar of the relations, the PM commended his guest’s role in opening markets for both sides' goods and encouraging US businesses to step up investment and expand operations in Vietnam.

He proposed that the US strengthen cooperation with Vietnam in technology transfer and digital transformation, soon recognize its market economy status, and remove Vietnam from the lists of countries subject to restrictions on high-tech exports (D1 and D3).

The PM expressed his confidence that the two sides would soon conclude negotiations on a reciprocal, fair and balanced trade agreement, helping to create a stable business environment and deliver tangible benefits for their business communities.

He also underlined the special significance and importance of cooperation in addressing war legacy issues, which helps build trust, promote reconciliation and enhance mutual understanding. He acknowledged Knapper’s persistent efforts in this area and called for continued cooperation.

On international and regional issues of shared concern, PM Chinh stressed the need to uphold the UN Charter and international law, and to resolve disputes by peaceful means. He urged the US to continue supporting ASEAN’s stance on regional issues, as well as efforts to maintain peace, stability, security, safety and freedom of navigation and overflight in the region in accordance with international law, cited VNA.

For his part, Knapper expressed his pleasure at witnessing the increasingly substantive and comprehensive development of bilateral relations across all fields, describing them as a model in international relations. He thanked PM Chinh for his support for the advancement of Vietnam-US ties.

The ambassador agreed that the two sides should further expand cooperation in key areas such as political and diplomatic relations, security and defence, trade and investment, energy, humanitarian cooperation and war legacy remediation, science and technology, and the training of high-quality human resources.

He expressed his confidence that the Vietnam-US Comprehensive Strategic Partnership would continue to grow strongly, and affirmed in whatever capacity, he would remain a friend of Vietnam and continue contributing to bilateral relations.

14th National Party Congress - pivotal moment for Vietnam to consolidate its rising position: former ambassador

The 14th National Congress of the Communist Party of Vietnam (CPV) is expected to set out major development orientations that will help Vietnam consolidate its position as a rising nation, while reaffirming its role as a pillar of stability in Southeast Asia, a former ambassador said.

Speaking to the Vietnam News Agency, Antoine Pouillieute, who worked as French Ambassador to Vietnam from 2001 to 2004, said that for years, Vietnam has been recognized by the international community as a successful country on its development path.

This success is reflected not only in economic indicators but also in the tangible progress perceived within Vietnamese society itself, he said.

However, Pouillieute stressed that the current international context is placing new demands on Vietnam. One major shift is the end of the early 21st-century model of globalization, as global trade increasingly moves from globalization toward regionalization. In this context, Vietnam needs to adapt swiftly, transitioning from deep integration into global markets to more proactive and effective participation in regional frameworks.

Another challenge, he said, is the re-emergence of major power structures, accompanied by tougher approaches in international relations. Amid growing uncertainty, Vietnam is expected to continue playing a very active role within ASEAN and to further strengthen its position as a genuine pillar of stability in Southeast Asia.

Commenting on the major orientations expected to be adopted at the 14th Party Congress, Pouillieute said such a congress must provide fundamental and long-term directions. After a successful “take-off” phase, Vietnam is now entering a stage where it must demonstrate its capacity for adaptability and endurance over the long run, according to VNA.

Fomer Frech Ambassador to Vietnam Antoine Pouillieute (Photo: VNA)

Key priorities, in his view, include simplifying the state apparatus and decision-making processes, improving the effectiveness of public policies in line with the strong dynamism of the private economic sector, and enhancing the competitiveness of a more diversified economy with higher added value. He placed particular emphasis on investing in human capital, strengthening social cohesion, and improving accountability among all actors toward the community.

Pouillieute held that Vietnam should continue to assert itself as a stability anchor in the region, guided by the long-term vision of its political leadership. As Vietnamese society becomes increasingly well educated, there is also a growing need to ensure that every individual has the conditions to develop in a balanced manner and contribute more effectively for the common good.

Addressing international challenges, Pouillieute noted that Vietnam, a country that has consistently upheld the principle of territorial integrity, should continue affirming this stance on land, at sea and in the air. At the same time, climate change challenges, particularly in low-lying delta regions, require Vietnam to play a leading role in ecological and energy transitions.

Looking at Vietnam–France relations, the former ambassador said traditional areas of cooperation within the framework of the bilateral strategic partnership should continue to be strengthened. However, if one top priority were to be identified, it should be investment in human resources.

According to Pouillieute, elevating scientific and technological cooperation would not only enhance the quality of bilateral ties, but also help build durable links between the two peoples. These people-to-people connections form the long-term foundation of Vietnam–France relations, clearly demonstrated in fields such as healthcare, even during the most difficult periods of shared history.

He concluded that if the 14th National Party Congress strongly advances professionalisation, improves effectiveness, strengthens social cohesion and promotes sustainable development, it will be a congress of particular significance for Vietnam’s next stage of development.

Vietnam set to retain strong FDI inflows in 2026 on macro stability

Vietnam is expected to maintain solid foreign direct investment (FDI) inflows in 2026, backed by macroeconomic stability, strong long-term growth potential, and its expanding role in global supply chains, according to economists.

At the recent macroeconomic forum titled “Data Talk | Macro Insight”, Tran Ngoc Bau, Founder and CEO of WiGroup said Vietnam’s outlook for international investment persists firmly positive heading into 2026.

According to Bau, FDI into Vietnam can broadly be divided into two categories - short-term, yield-seeking inflows sensitive to interest rate differentials, and long-term investments driven by growth potential, political stability and Vietnam’s improving regional position.

For speculative capital, the main risks are negative interest rate differentials and domestic geopolitical uncertainty. These risks are expected to ease significantly by 2026, paving the way for a gradual return of short-term flows, he explained.

Simultaneously, businesses with long-term investment capital inflows continue to view Vietnam as an appealing destination thanks to the country’s stable political environment, consistent economic growth, strong social consensus, and competitive tax incentives.

Bau emphasized that the slowdown in newly registered FDI in the second half of 2025 should be seen as temporary. Over the medium to long term, Vietnam’s ability to compete for global capital stays intact.

Echoing this assessment, Nguyen Duc Hai, CFA Director, Head of Fixed Income at Manulife Asset Management (Vietnam) highlighted the influence of global geopolitics on investment trends.

He pointed out that growing polarization and decoupling between the US and China are accelerating supply chain realignments. As the US seeks alternative sources to meet its substantial import demand, Vietnam stands out as a viable and attractive option, VOV reported.

Vietnam is expected to retain strong FDI inflows on macro-economic stability in 2026 (Illustrative image)

Beyond its strategic role in supply chains, Hai stated that Vietnam has earned additional credibility through its cooperative stance with the US, compliance with new regulatory requirements, openness to trade, and improved transparency in export activities. These factors help build trust with major partners and lay the groundwork for capital inflows from a broader range of countries.

Vietnam is among a small group of countries in the region with strong commitments to free trade and investment, having signed 17 free trade agreements, he said.

He added that foreign investors choosing Vietnam are not only targeting its domestic market but also its ability to access global markets through manufacturing capacity and deep trade integration. A young population and abundant labour supply over the next 10 to 15 years would further reinforce Vietnam’s investment appeal.

While short-term capital flows may remain volatile, Hai noted they are not a policy priority due to potential risks to exchange rate and financial market stability, whereas long-term FDI still has room for sustained growth.

UOB upgrades Vietnam’s 2026 GDP growth forecast to 7.5%

Singapore-based United Overseas Bank (UOB) has raised its forecast for Vietnam’s GDP growth in 2026 to 7.5 percent from a previous projection of 7 percent, in its latest Vietnam economic outlook report.

The bank cited that the country's real GDP expanded by 8.46 percent year-on-year in the fourth quarter of 2025, accelerating from 8.25 percent in the third quarter. The robust performance was largely driven by resilient export activity and steady manufacturing despite the adverse impact of U.S. tariffs.

The fourth-quarter growth rate significantly exceeded Bloomberg's forecast of 7.7 percent as well as UOB's earlier projection of 7.2 percent, marking the fastest quarterly expansion since 2009, excluding the volatile period caused by the COVID-19 pandemic.

Exports continued to be the main engine of growth. In the fourth quarter of 2025, export turnover rose 19 percent year-on-year, while full-year exports increased 17 percent, despite tariff-related headwinds. The processing and manufacturing sector also posted solid gains, expanding 11.3 percent in the fourth quarter, compared to 10 percent a year earlier, lifting full-year growth in the sector to 10.5 percent.

Suan Teck Kin, Executive Director in Global Economics and Markets Research at UOB, said Vietnam's economy demonstrated remarkable resilience in 2025. With GDP growth reaching 8 percent, Vietnam enters 2026 on a strong footing.

However, UOB also cautioned about several downside risks to the outlook, including a high base effect, the possibility of export growth moderating after a period of rapid expansion, and prolonged uncertainty surrounding U.S. tariff policies.

Vietnam is considered a highly open economy and, therefore, vulnerable to external trade shocks. Exports of goods and services currently account for around 83 percent of GDP, the second-highest in ASEAN, after Singapore, cited VGP.

Photo: VGP

The U.S. remains Vietnam's largest export market, accounting for about 30 percent of total exports in 2024, followed by China (15 percent) and South Korea (6 percent). Key export items to the U.S. include electronics, phones and components, furniture, footwear and garments, which together made up nearly 80 percent of Vietnam's exports to that market.

Vietnam's GDP growth accelerated to 8.02 percent in 2025, the second-highest rate in the 2011–2025 period, driven mainly by momentum from services and industrial production, the National Statistics Office reported.

With this figure, Vietnam becomes the fastest-growing economy in Southeast Asia and in the world.

Vietnam's foreign trade volume reached a record high of US$930.05 billion in 2025, representing a strong increase of 18.2 percent compared to the previous year.

Cold spell weakens in the North, people still feel chill in the South

The strong cold spell begins to weaken in the North, while people in the South still feel chill. (Illustrative image)

The strong cold air mass affecting Northern Vietnam is forecast to gradually weaken from January 10, allowing temperatures to rise slightly in the coming days, though cold and dry conditions are expected to persist, according to the National Centre for Hydro-Meteorological Forecasting.

Nguyen Van Huong, head of the Weather Forecast Department, said temperatures in the northern and north-central regions could increase by around 3–4°C, with daytime highs ranging from 19 to 22°C. Lowland areas are expected to see overnight temperatures of 11–13°C, while mountainous areas could record lows of 9–12°C.

Weather monitoring stations reported early on January 10, widespread severe cold conditions continued across 18 provinces and cities in northern and north-central regions, with several weather stations recording temperatures below 10°C. The lowest temperature was reported in Trung Khanh commune, Cao Bang province, at 4.6°C, reported VOV.

Huong warned that January remains the peak winter month and further cold spells could still bring severe cold conditions, including frost and ice in northern mountainous areas.

In southern Vietnam, residual cold air at low levels continued to influence overnight temperatures, with early morning lows ranging from 17 to 22°. Some areas in Dong Nai province recorded temperatures as low as 16°.

Meteorologists said temperatures in the South are expected to gradually rise from the night of January 10 through the morning of January 11, though cool conditions may persist until January 13 before returning to typical weather patterns.

Meanwhile, central Vietnam is forecast to see stable, sunny weather, with temperatures ranging from 21 to 24° from Thanh Hoa to Quang Ngai and across the Central Highlands.

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