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Vietnamese Permanent Deputy Prime Minister Nguyen Hoa Binh (L) meets with Singaporean Senior Minister Lee Hsien Loong on January 13. (Photo: MDDI)

Vietnam seeks stronger partnership with Singapore

Permanent Deputy Prime Minister Nguyen Hoa Binh had a meeting with Singaporean Senior Minister Lee Hsien Loong on January 13 as part of his working trip to the city-state.

Binh conveyed the warm greetings from leaders of the Party and State of Vietnam to Lee, and expressed appreciation for the significant and enduring contributions made over many years by late Prime Minister Lee Kuan Yew and Senior Minister Lee Hsien Loong to strengthening and deepening Vietnam–Singapore relations, as well as to Vietnam’s economic development, notably the strong expansion of the Vietnam–Singapore Industrial Park (VSIP) network.

Lee thanked the leaders and people of Vietnam for their warm sentiments, recalled his positive impressions of Vietnam and its people, and highlighted the close cooperation between successive generations of senior leaders of the two countries.

He voiced his confidence that, with its potential and comparative advantages, Vietnam will achieve further major economic development milestones.

The official welcomed the positive and substantive progress in the bilateral relations, particularly the development of 21 VSIPs in 14 provinces and cities, and noted the shared aspiration of senior leaders of both countries to work towards 30 VSIPs by 2030.

Regarding financial cooperation, Lee congratulated Vietnam on the recent establishment of an International Financial Center, describing it as a reflection of Vietnam’s vision and determination in the new development phase.

He shared Singapore’s experience in developing such centers and offered strategic recommendations for Vietnam in building and operating its International Financial Center, affirming that the Singaporean Government stands ready to exchange expertise, support Vietnam, and promote connectivity between the financial centers of the two countries.

Thanking Lee for his valuable insights, Binh said that during the visit, the Vietnamese delegation held productive meetings with Singaporean agencies, banks, financial institutions and investors, all of whom expressed their strong interest and positive assessments regarding Vietnam’s International Financial Center. Many viewed it as a necessary and sound decision, and showed interest in cooperation and investment opportunities, he stated.

The Deputy PM expressed his hope that Lee will continue to support efforts to further advance Vietnam–Singapore relations in a more practical and effective manner, as well as provide advice and share experience in developing financial centers and promoting connectivity between the two countries’ international financial centers.

On this occasion, Binh extended an invitation to Lee to visit Vietnam at a convenient time. The Senior Minister thanked him and accepted the invitation with pleasure.

Vietnam – China economic, trade cooperation becomes close, complementary: expert

In recent years, economic and trade ties between Vietnam and China have been continously strengthened and upgraded, becoming one of the key pillars of China – ASEAN cooperation, according to a Chinese expert.

In an interview with a Vietnam News Agency correspondent in China, Zhang Jianping, Vice Chairman of the academic committee of the Chinese Academy of International Trade and Economic Cooperation under the Ministry of Commerce, said General Secretary of the Communist Party of China and President Xi Jinping has repeatedly underlined the goal of building a China – Vietnam community with a shared future, describing it as a crucial orientation for bilateral relations in the new era. Alongside this, economic and trade relations between the two countries have expanded rapidly and grown ever closer.

According to the 2024 data from the General Administration of Customs of China published on Comnews.cn, bilateral trade had exceeded 260 billion USD – a level rarely seen in China’s trade relations with foreign partners. Notably, Vietnam, with a population of around 100 million, now records a trade volume with China that is twice that of India, despite India’s population of more than 1.4 billion.

Zhang noted that within the framework of China – ASEAN cooperation, particularly the 3.0 version of the China – ASEAN Free Trade Agreement, the two countries have established systematic cooperation mechanisms, strongly promoting international production capacity cooperation and two-way investment, according to VNA.

Various Vietnamese fruits, including durian and passion fruit, are on sale at China's Youyi Guan border gate. (Photo: VNA)

As Vietnam leverages its demographic advantages and steps up an export-, trade- and investment-led growth model, bilateral trade and investment between the two countries have reached high levels. In 2024, China – ASEAN trade surpassed 980 billion USD and was expected to exceed 1 trillion USD in 2025, with Vietnam alone accounting for around 25% of the total value. This, Zhang said, underlines Vietnam’s role as a pillar of China – ASEAN cooperation.

He added that differences in per capita GDP between the two countries reflect their different stages of development but also create strong complementarities in economic cooperation.

Looking ahead, he expressed hope that the two sides would continue to deepen cooperation in infrastructure, connectivity, production capacity, trade and investment. Chinese enterprises, he said, are expected to increase investment and build factories and industrial parks in Vietmam, helping to elevate bilateral economic and trade relations and promote the sustainable development of China–ASEAN cooperation.

Vietnam emerges as Asia’s fastest-growing economy despite tariff headwinds: HSBC

Despite a turbulent year, Vietnam recorded annual growth of up to 8% in 2025, in line with HSBC expectations, emerging as Asia’s fastest-growing economy, according to the bank’s latest “Vietnam at a Glance” report.

The report noted that although Vietnam had been widely expected to face elevated tariff risks, its trade was not disrupted but instead climbed to a record US$928 billion, an 18% year-on-year increase. This was attributed to the impact of frontloading and the importance of exporting the “right” products.

Demand for AI-driven chips amid the escalation of the US-China chip race has reshaped the global semiconductor landscape, strengthening the case for electronics exports as a buffer against tariff impact. Vietnam is part of this trend, although its exports remain concentrated in low-end consumer electronics.

The country’s electronics exports now account for 35% of its total export basket, up from just 5% in 2010. Meanwhile, textiles and footwear exports have fallen from a peak of 30% in 2005 to slightly above 10% now, reflecting Vietnam’s move up the export value chain.

In addition to shipping the “right” products, Vietnam has gained market share in the United States, with exports jumping nearly 30% year on year in 2025. Despite a headline tariff of 20%, the country has continued to capture more US market share in products such as phones, textiles and footwear.

The report said Vietnam has set a strong example of how to capitalize on the “China+1” opportunity. While its trade deficit with China expanded to US$116 billion, its trade surplus with the rest of the world widened to US$136 billion, resulting in an overall trade surplus of US$20 billion, VOV reported.

Vietnam overcomes tariff concerns to become the growth champion in Asia (Illustrative image)

Domestic demand has also remained resilient. Private consumption grew 8% from a high base, while investment accelerated to nearly 9% in 2025, supported by continued infrastructure spending, a traditional policy lever for Vietnam.

On the tourism front, despite missing its earlier target, Vietnam welcomed a record high of more than 21 million visitors, generating tourism receipts of US$40 billion, equivalent to 7% of GDP. Tourist arrivals have recovered to nearly 120% of 2019 levels, aided by the swift return of Chinese visitors, despite the absence of a visa-free scheme with mainland China.

Elsewhere, inflation remains in check. Headline inflation rose 0.2% month on month and 3.5% year on year in December, largely driven by a 1% increase in food prices linked to earlier flooding-related supply disruptions. The impact is expected to be temporary. Overall inflation is estimated at 3.3% for 2025, in line with HSBC expectations, supported by low oil prices and broadly stable food costs.

HSBC expects GDP growth to reach 6.7% in 2026, with inflation remaining benign at around 3.5%.

Int’l media highlights Vietnam’s rising role in global supply chains

International media agencies, including Reuters, AFP and NHK, have highlighted Vietnam as one of Asia’s strongest growth performers and an increasingly important player in global supply chains.

Official data show the Vietnamese economy expanded 8.02 percent in 2025, ranking among the fastest-growing economies worldwide despite global trade headwinds such as protectionism, higher logistics costs and supply-chain disruptions.

Vietnam's performance is particularly notable at a time when global trade is under pressure from rising protectionism, higher logistics costs and ongoing supply-chain disruptions.

Vietnam has managed to sustain strong momentum through a relatively balanced combination of exports, domestic consumption and public investment, reflecting a more diversified and resilient growth model.

Jochen Schittmann, the International Monetary Fund's regional resident representative, said Vietnam has continued to show strong determination to deepen its integration into the global economy despite heightened trade volatility. He cautioned that increasing trade barriers and tariffs pose challenges for maintaining high growth in highly open economies such as Vietnam, but also highlighted the country's ambitious and wide-ranging structural reform agenda. Under the IMF's scenario analysis, effective implementation of these reforms could lift Vietnam's growth by around two percentage points above the baseline.

Reuters placed particular emphasis on Vietnam's expanding footprint in global supply chains, especially in electronics, textiles and garments, footwear, and high-tech equipment—sectors that are deeply embedded in regional and global production networks.

Domestic factors also played a significant role in supporting growth in 2025. Industrial output and construction rose by nearly 9 percent, the services sector expanded by more than 8.5 percent, and retail sales and household consumption continued to increase. Public investment in infrastructure remained robust, helping to stabilize economic activity while enhancing logistics capacity, connectivity and longer-term growth potential.

NHK, Nikkei Asia and The Daily Star have further commended Vietnam for maintaining macroeconomic stability throughout the year. Inflation was kept at around 3.3 percent, within the government's target range, while disbursed foreign direct investment rose by 9% to over US$27 billion, reflecting sustained investor confidence in the country's medium- and long-term prospects.

International coverage has also drawn attention to a qualitative shift in Vietnam's growth trajectory. Rather than relying mainly on low-cost advantages, Vietnamese products are increasingly meeting stricter requirements on technical standards, environmental compliance, traceability and sustainability—factors widely seen as critical for maintaining access to major markets as regulatory barriers tighten, cited VGP.

Viet Nam is regarded as one of Asia’s strongest growth performers and an increasingly important player in global supply chains.

Michael Kokalari, Chief Economist at VinaCapital, said he remains cautiously optimistic about GDP prospects for the coming year, pointing to a clear improvement in consumer sentiment.

Since mid-2025, confidence has gradually recovered and stabilized. Although household savings have yet to return to previous levels, a rebuilding trend is evident. Retail sales are currently growing at around 7 percent annually, largely supported by the recovery in tourism. With firmer confidence and supportive macroeconomic conditions, domestic consumption growth could return to about 8 percent next year, providing a meaningful boost to GDP without the need for short-term or exceptional policy measures.

At the same time, international institutions, including the IMF, warn that the outlook for 2026 remains subject to external risks, particularly a potential global economic slowdown and shifts in international trade policies. Against this backdrop, Vietnam's ambitious growth targets for the 2026–2030 period are widely seen as a crucial test of its efforts to rebalance the economy toward greater sustainability and self-reliance.

Northern Vietnam set for severe cold, temperatures fall below 10°C

Northern Vietnam is expected to experience a strong cold spell, which will persist for several days, with mountain areas facing severe cold, according to the national weather bureau.

From January 19–25, Hanoi and northern provinces will see rain and a marked drop in temperatures starting January 21, reported the National Center for Hydro-Meteorological Forecasting, adding temperatures are anticipated to drop as low as 10°C in Hanoi and near 0°C in the mountainous areas.

In early January 2026, residents in northern and north-central Vietnam are experiencing an extreme weather pattern: hot, dry days with strong sun and sudden plummeting temperatures at night, creating bone-chilling cold. Meteorologists attribute this to a modified cold air mass combined with a dominant continental high, which has dried out the lower atmosphere by cutting off moisture from the sea.

During daytime, direct sunlight intensifies heat and UV exposure, while relative humidity drops to 35–40%, causing dry skin, chapped mucous membranes, and heightened forest fire risks in mountainous areas. At night, with clear skies and no cloud cover to trap heat, temperatures drop sharply in a phenomenon known as surface heat radiation, cited VOV.

A strong cold spell is expected to hit Northern Vietnam next week.

Nighttime lows in the plains are expected at 10–12°C, while midland and mountainous areas may see temperatures fall to 6–9°C. High-altitude peaks above 1,500 meters, including Fansipan, Phia Oac, and Mau Son, could reach 0°C or below.

Authorities warn of a high risk of frost and rime, which can damage crops and ornamental plants ahead of Lunar New Year celebration.

This “hot day, freezing night” pattern is expected to persist for 3–5 more days, before a strong cold air mass moves in.

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