Vietnam seeks early signing of trade deal with EFTA
Vietnam will continue working closely with the European Free Trade Association (EFTA) member states to sign their free trade agreement (FTA) at an early date and effectively implement its commitments, paving the way for stronger trade and investment ties while expanding cooperation in the areas of mutual interest.
Spokeswoman of the Vietnamese Ministry of Foreign Affairs Pham Thu Hang made the remarks in response to reporters' questions about the conclusion of the Vietnam-EFTA FTA, at the ministry's regular press briefing on July 9.
Hang said Vietnam and the EFTA member states issued a joint communiqué on July 2 announcing the successful conclusion of negotiations on the agreement, reflecting both sides' strong determination and efforts to finalise the deal after 14 years of talks, according to VNA.
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| Spokeswoman of the Vietnamese Ministry of Foreign Affairs Pham Thu Hang speaks at the press conference on July 9. (Photo: VNA) |
Vietnam welcomes negotiation outcomes, she said, describing the pact as a milestone in the country's efforts to expand its network of FTAs, bringing the total number of FTAs it has signed with partners to 18 while strengthening its comprehensive links with Europe.
At the same press briefing, Hang expressed Vietnam's sympathy over the heavy human and property losses caused by severe flooding, torrential rains, tornadoes and landslides in several localities of China.
According to the spokeswoman, on July 8, General Secretary of the Communist Party of Vietnam (CPV) Central Committee and State President To Lam and Prime Minister Le Minh Hung sent messages of sympathy to General Secretary of the Communist Party of China (CPC) Central Committee and President of China Xi Jinping and Premier Li Qiang. The same day, Politburo member and Minister of Foreign Affairs Le Hoai Trung extended his sympathy to Wang Yi, Director of the Office of the Central Commission for Foreign Affairs and Minister of Foreign Affairs. Earlier, Trung had cabled a similar message to Chen Gang, Secretary of the CPC Committee of the Guangxi Zhuang Autonomous Region.
"Once again, we would like to extend our deepest sympathy to the Government and people of China, especially the people of Guangxi, over the difficulties and losses caused by the natural disasters," Hang said.
Citing information from Vietnam's representative missions in China, the spokeswoman said no Vietnamese citizens had been reported affected by the recent disasters.
She added that the Vietnamese missions are closely monitoring the situation and coordinating with local authorities to stand ready to provide citizen protection measures if necessary. Vietnamese citizens in need of assistance are advised to contact the Ministry of Foreign Affairs' citizen protection hotline.
UOB revises up Vietnam's 2026 GDP growth forecast to 8.5%
Singapore-based United Overseas Bank (UOB) has sharply raised its forecast for Vietnam's 2026 GDP growth to 8.5%, more than reversing the previous downgrade to 7%, citing stronger-than-expected first-half economic performance driven by manufacturing, investment and foreign direct investment (FDI).
According to the bank, Vietnam’s GDP growth strengthened to 8.39% year-on-year in the second quarter of 2026, from 7.94% in the first quarter, lifting the first half’s figure to 8.18%.
In its latest economic update, UOB said the result was well abobe its earlier expectations despite the overhang of geopolitical risks in the Middle East and elevated energy prices. It noted that the outcome reflected broad-based momentum across industry, construction, services, and agriculture, helping Vietnam retain its position as ASEAN's fastest-growing economy.
Despite revising up its forecast for Vietnam's full-year GDP growth, the organization said the Government's 10% growth target will be difficult to attain given continued uncertainties in the global economy, reported VNA.
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| Workers on a production line manufacturing camera modules and electronic components for export at a factory of MCNEX VINA Co., Ltd.. of the Republic of Korea in Phuc Son Industrial Park, Ninh Binh province. (Photo: VNA) |
According to UOB, manufacturing remained the economy's main growth engine. The industrial and construction sector expanded 10.51% year-on-year in the second quarter, faster than 9.01% recorded in the previous quarter. Industrial production also maintained double-digit growth, with the Index of Industrial Production (IIP) rising 12.7% year-on-year in June and 10.8% in the first half.
Notably, manufacturing grew 11.4%, supported in H1 by rising global demand for artificial intelligence (AI)-related products as major technology companies continued expanding investment.
FDI remained another bright spot despite geopolitical headwinds. Disbursed FDI reached about 13 billion USD in the first six months, up 11.2% compared to the same period last year, while newly registered FDI climbed 61% to 34.7 billion USD.
UOB said the figures underscored Vietnam's continued attractiveness as the ongoing diversification of global supply chains continues to benefit the country. The robust volume of newly registered FDI also provides a solid foundation for stronger disbursements in the remaining months of the year, potentially making 2026 one of the country's strongest years for attracting foreign inflows.
Despite the positive trends, the bank said the strong economic performance comes with a weakened external balance. Although exports rose 22.8% in the last quarter, imports jumped 38.14%, resulting in a second consecutive quarterly trade deficit of around 11.8 billion USD. The first-half trade deficit reached approximately 15 billion USD, reversing a surplus of 7.9 billion USD recorded in the same period last year.
Nonetheless, UOB experts said that with the US and Iran now engaging in negotiations and the Strait of Hormuz reopening, energy prices are expected to ease gradually. As such, the trade balance is expected to return to a surplus position towards the end of 2026.
Meanwhile, inflation has shown signs of moderating. The CPI eased to 4.69% in June from above 5% in the previous two months. The average inflation for the first half stood at 4.38% and core inflation at 4.12%.
The bank said some of the Government’s earlier efforts to bring prices under control, including freezing taxes on gasoline and promoting wider adoption of electric vehicles and use of biofuels, helped ease inflationary pressures.
However, global oil prices remain a key factor to monitor as geopolitical tensions continue to pose uncertainties, it added.
Airlines add international flights, giving summer travelers more flexible options
Airlines are adding flights during the 2026 summer travel season, giving passengers more choices of departure times and travel dates while enabling travel operators to design more flexible tour packages.
Representatives of several carriers say demand for summer travel has risen significantly in both the domestic and international markets.
Routes to Northeast Asia, including the Republic of Korea, Japan and Taiwan (China), continue to see higher flight frequencies to meet demand for tourism, family visits, business travel and trade.
Vietnam Airlines says it will increase services on several international routes from Hanoi and Da Nang. Flights between Hanoi and Taipei will rise from seven to 11 per week. The Hanoi-Osaka route will increase from seven to 11 weekly flights between October 26 and November 30, before rising to 14 flights a week from December 1. From Da Nang, the airline has increased flights to Seoul to 14 per week from July 1, while also increasing services to Tokyo and Osaka, cited VOV.
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| Photo: VOV |
According to travel companies, the denser flight schedules allow tour operators to offer more short-break and weekend packages and increase departure dates, while giving travelers greater flexibility in choosing flight times and planning their itineraries.
Sun PhuQuoc Airways is also expanding its network to the Republic of Korea. From August 25, the airline will begin operating daily direct return services on the Hanoi-Seoul and Ho Chi Minh City-Seoul routes.
Meanwhile, Vietjet has increased its summer flight schedule by about 30%, focusing on domestic leisure routes while adding frequencies on selected international services. The airline has also opened ticket sales for new international routes, including Ho Chi Minh City-Colombo from August 18, Hanoi-Almaty and Hanoi-Prague from October 10, and Nha Trang-Singapore from December.
Travel experts say additional flights will not necessarily lead to lower airfares or package tour prices immediately, as costs also depend on accommodation, visa fees, ground services and exchange rates.
However, the larger seat supply is expected to ease ticket shortages during the peak travel season, create more scope for travel companies to develop new products and give travelers a wider choice of itineraries.
Bavi remains a powerful storm despite staying east of the East Sea
Vietnam's weather agency says Super Typhoon Bavi poses no direct threat to the East Sea but will still trigger strong winds and high waves.
Super Typhoon Bavi is continuing to move rapidly toward the area north of Taiwan (China) and is forecast to make landfall in Fujian Province on China's southeastern coast on July 11. Although the storm is not expected to enter the East Sea, its extensive circulation is likely to generate strong winds and rough seas across the region.
Expected to weaken gradually before landfall
Forecasts indicate that Bavi will continue moving northwest over the next 24 hours at around 20km/h, maintaining super typhoon intensity.
Around July 10, the storm is expected to pass north of Taiwan (China) while weakening slightly to Level 15, although gusts are still forecast to exceed Level 17, reported VNN.
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| Super Typhoon Bavi continues tracking toward the area north of Taiwan (China). Source: Vietnam Disaster Monitoring System. |
By the afternoon and evening of July 11, Bavi is forecast to make landfall along the eastern coast of Fujian Province with sustained winds of around Level 13–14 before moving inland and gradually weakening.
No direct impact on the East Sea, but rough marine conditions expected
The Vietnam Meteorological and Hydrological Administration continues to assess that Super Typhoon Bavi is unlikely to enter the East Sea.
However, because of its exceptional strength, the storm's outer circulation is expected to significantly affect marine conditions.
Beginning July 9, southwesterly winds over the southern East Sea, including waters around the Truong Sa (Spratly) Islands, are forecast to strengthen to Level 6.
From July 10 to July 11, the northern, central and southern East Sea, including waters surrounding both the Hoang Sa (Paracel) Islands and Truong Sa Islands, could experience Level 6–7 winds, with waves reaching 3 to 5 meters, creating very rough seas.
The National Center for Hydro-Meteorological Forecasting said it is continuing to closely monitor the storm's development.
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