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The working session between Deputy Minister of Industry and Trade Nguyen Hoang Long and IKC Representative Director and Executive Vice President Atsuhiko Hirano in Hanoi on June 12 (Photo: Vietnamese Ministry of Industry and Trade)

Vietnam, Japan cultivate energy collaboration

Deputy Minister of Industry and Trade Nguyen Hoang Long held a working session with Representative Director and Executive Vice President of Japan’s Idemitsu Kosan Co., Ltd. (IKC) Atsuhiko Hirano in Hanoi on June 12, saying that he expects the Japanese firm to work closely with Vietnamese partners in energy, drawing on its extensive experience, financial prowess, and technology.

Long praised Idemitsu’s cooperation in securing crude oil supplies for the Nghi Son Refinery and Petrochemical complex, expecially amid escalating tensions in the Middle East.

He urged Idemitsu to leverage its role as a strategic shareholder and team up with other partners to respond swiftly to geopolitical shifts, ensuring a stable, sustainable crude oil flow to the refinery.

On exploration expansion, he encouraged Idemitsu to study bidding rounds hosted by the Vietnam National Industry - Energy Group (Petrovietnam) in compliance with local law, cited VNA.

Hirano, in reply, briefed Long on the IKC’s operations in Vietnam. Founded in 1911, it was among the first international oil companies to enter the Vietnamese market in the early 1990s.

Idemitsu’s local unit, Idemitsu Vietnam Co., was established and began operations in October 2023 to reinforce support for ongoing projects. The company is scouting for investment opportunities, including research and development tied to energy transition and carbon neutrality, he said.

The guest asked for continued backing from the Ministry of Industry and Trade and relevant Vietnamese agencies to run existing projects and expand investment in the energy sector, thereby contributing to bilateral economic ties.

Vietnam’s economy demonstrates resilience amid cost pressures, external uncertainties: UOB

Despite signs of moderating growth, Vietnam’s economy continues to demonstrate considerable resilience in the face of rising cost pressures and an increasingly uncertain external environment, according to the Q3 2026 economic outlook report released on June 12 by Singapore-based United Overseas Bank (UOB).

Short-term outlook presents both opportunities and challenges

UOB noted that while Vietnam has maintained relatively strong growth momentum, recent economic indicators suggest a mixed short-term outlook, with positive developments tempered by mounting challenges. In particular, higher energy costs are beginning to weigh on manufacturing activity and macroeconomic stability.

Manufacturing improved notably in May, with the Purchasing Managers’ Index (PMI) rising to 52.8 from 50.5 in April and 49.8 a year earlier. The output index also climbed sharply to 55.6, reflecting continued improvement in new order demand.

Inflation, however, remains a key concern. Consumer price index rose by 5.6% year-on-year in May, marking the third consecutive monthly increase and the highest level in six years. Meanwhile, industrial production growth eased to 9% from 10% in April, bringing average growth in the second quarter to 9.5%, significantly lower than the 11% recorded in the first quarter.

Trade activities have also begun to cool down. Exports expanded by 18% in May, down from 21% in the previous month, while imports continued to surge by 33.8%. As a result, Vietnam’s trade balance posted a deficit of 12.7 billion USD in the first five months of the year, compared with a surplus of around 5 billion USD in 2025, marking the largest deficit in nearly three decades.

According to UOB, Vietnam’s balance of payments is likely to remain under pressure as imports of machinery and equipment for major infrastructure projects continue to increase, alongside higher energy costs driven by elevated oil prices.

Over the medium term, UOB observed that Vietnam remains committed to ambitious development goals, including achieving average annual GDP growth of at least 10% during the 2026–2030 period. By 2030, the country aims to attain upper-middle-income status, develop a modern industrial base, rank among the world’s 30 largest economies and raise per capita GDP to approximately 8,500 USD.

While some international institutions remain more cautious in their projections, UOB believes Vietnam’s external demand remains relatively robust, partly supported by continued global investment in artificial intelligence (AI). The bank therefore maintains its forecast of 7% GDP growth for Vietnam in 2026, although growth could moderate to around 6.7% during the second and third quarters, according to VNA.

The Vietnamese economy has shown notable resilience amid rising cost pressures and global volatility. (Photo: VNA)

Exchange rate outlook more stable, but risks remain

Inflation has become a key policy concern for the State Bank of Vietnam (SBV), with average inflation during the first five months of 2026 reached 4.3%, nearing the Government’s target of 4.5%, while full-year inflation is projected to rise to as high as 5.5%.

Against this backdrop, UOB expects the central bank to keep policy rates unchanged as it balances inflation management with exchange-rate stability. At the same time, the SBV has encouraged commercial banks to lower lending rates to support businesses and borrowers, complemented by fiscal measures such as extending the 0% tax rate on petrol and selected fuel products through the end of June.

The Singaporean bank further highlighted improving US-China relations following talks between US President Donald Trump and Chinese President Xi Jinping in mid-May as a positive factor for Vietnam’s export outlook. Reduced tensions between the world’s two largest economies could help limit the spread of tariff measures while reinforcing Vietnam’s position as a key destination in the ongoing global supply-chain diversification trend.

On that basis, UOB expects the Vietnamese dong to continue depreciating gradually in a controlled manner. It forecasts the USD/VND exchange rate at 26,500 in the third quarter of 2026, 26,400 in the fourth quarter, 26,300 in the first quarter of 2027 and 26,100 in the second quarter of 2027. The medium-term outlook for the currency remains supported by solid economic fundamentals, sustained FDI inflows and consistent macroeconomic policies, with a potential upgrade of Vietnam to emerging-market status in September 2026 expected to provide an additional boost to capital inflows.

Vietnam targets digital economy to contribute 30% of GDP by 2030

Vietnam aims for the digital economy to contribute around 30% of GDP by 2030 under a newly approved national program that places artificial intelligence (AI), data infrastructure and digital transformation at the center of the country’s next growth model.

The Government has recently approved the National Digital Economy and Digital Society Development Program for 2026–2030, setting ambitious targets to accelerate digital transformation across all sectors and expand access to digital services for citizens and businesses.

The program, signed by Deputy Prime Minister Ho Quoc Dung, envisions a dynamic digital economy powered by data, digital platforms and AI, alongside an inclusive and secure digital society where people can fully benefit from technological advances.

Digital economy to become a key growth driver

Under the program, Vietnam expects the digital economy to account for approximately 30% of national GDP by the end of the decade.

The strategy positions digital technology, innovation and data-driven development as core pillars of future economic growth while supporting the country's broader green and sustainable development objectives.

Authorities have identified digital infrastructure, data governance, AI adoption, digital skills and technology enterprises as key priorities for the next five years.

A major focus of the program is the development of modern, secure and integrated digital infrastructure.

By 2030, 100% of households are expected to have access to fiber-optic broadband internet with speeds of up to 1 Gb/s, while 5G networks are targeted to cover 99% of the population with minimum speeds of 100 Mb/s.

Vietnam also plans to accelerate investment in data centers, cloud computing facilities, high-performance computing systems and AI infrastructure services.

Emerging technologies, including low-earth-orbit satellite internet systems, will be explored to improve connectivity, particularly in remote and underserved areas, cited VOV.

Vietnam aims for the digital economy to contribute 30% of GDP by 2030 under a new national programme focused on AI, data infrastructure, digital skills, cybersecurity and innovation-driven growth. (Illustrative image)

The government will take the lead in developing strategic and public digital infrastructure, while private enterprises will participate through market-based investment mechanisms.

Cybersecurity remains a central component of the strategy, with plans to establish internationally standardised security centers and strengthen safety frameworks for AI, blockchain, cloud computing and big data technologies.

Data and AI to power the next phase of growth

The program places unprecedented emphasis on building a data economy and expanding AI applications across government, business and society.

Vietnam plans to establish at least five data exchanges by 2030 and further develop national and sectoral databases to support data sharing, reuse and innovation.

Authorities will continue refining legal frameworks governing data ownership, digital assets, data commercialisation and cross-border data flows.

AI has been identified as a strategic technology capable of boosting productivity, enhancing public administration and accelerating innovation.

Government agencies will be encouraged to identify practical challenges that can be addressed through AI-powered solutions, while successful pilot projects will be expanded nationwide.

Small and medium-sized enterprises (SMEs) are expected to play a central role in the country's digital transformation agenda. The government aims to support at least 500,000 SMEs in adopting digital technologies and AI applications during the 2026–2030 period.

Vietnam also seeks to strengthen domestic digital platform ecosystems, promote open APIs and enhance interoperability across industries.

Building a people-centered digital society

Beyond economic objectives, the program aims to create a comprehensive digital society with citizens at its core.

By 2030, all Vietnamese citizens aged 14 and above are expected to possess digital identity accounts linked to the national electronic identification system.

The government also targets 95% of people aged 15 and older having access to bank or financial transaction accounts, while more than 70% of adults are expected to use personal digital signatures.

Digital services available through the VNeID platform will continue to expand, supporting public administration, business activities and everyday transactions.

Authorities also plan to strengthen connections between the National Population Database and other national databases to improve the quality and efficiency of digital public services.

At the same time, the program emphasizes digital literacy, responsible technology use and the development of healthy digital environments and online communities.

Training 10 million workers in digital skills

Human capital has been identified as a decisive factor in achieving Vietnam's digital transformation goals.

The program targets Science, Technology, Engineering, and Mathematics (STEM) disciplines accounting for 40% of university enrollment by 2030 while providing basic digital skills training for at least 10 million people of working age.

Vietnam also seeks to develop a highly skilled workforce specialising in AI, data science, cybersecurity and advanced digital technologies.

Partnerships among government agencies, businesses and educational institutions will be expanded to align training programs more closely with labour market demands.

In addition, policies will be introduced to attract technology experts from both domestic and international talent pools and support the development of AI-powered digital labour platforms.

Technology firms encouraged to compete globally

Another major objective is strengthening Vietnam's digital technology sector and fostering globally competitive enterprises.

By 2030, Vietnam aims to have at least five digital technology companies operating at levels comparable to leading international firms.

Large enterprises and state-owned corporations are expected to serve as innovation leaders, deepen participation in global value chains and promote the development of "Make in Vietnam" digital products and services.

The expansion of data markets, innovation ecosystems, carbon credit trading mechanisms and new digital marketplaces is also expected to create additional growth opportunities for the economy.

The 2026–2030 program is expected to provide a critical foundation for a development model driven by technology, innovation and data, helping Vietnam accelerate its transition toward a digital future while ensuring broader social inclusion and sustainable growth.

Vietnam outpaces Thailand and Singapore in attracting Australian tourists

Vietnam continues to strengthen its position as a leading destination for Australian travelers, ranking as the second most popular country in Southeast Asia for visitors from Australia and surpassing both Thailand and Singapore.

According to the latest data released by the Australian Bureau of Statistics (ABS), more than one million Australians traveled overseas in April 2026, an increase of 4.6% compared with the same period last year.

Vietnam welcomed approximately 68,000 Australian visitors during the month, placing it fifth among the most visited international destinations for Australian travelers, behind Indonesia, New Zealand, Japan and China.

Within Southeast Asia, Vietnam ranked second only to Indonesia and attracted more Australian visitors than both Thailand and Singapore, traditionally among the region's strongest tourism markets.

The latest figures reflect a significant shift in Australian travel preferences over the past decade.

In 2016, Vietnam ranked fifth among Southeast Asian destinations favoured by Australian tourists. By 2024 and 2025, the country had climbed to third place, overtaking Singapore and Malaysia.

Australian arrivals to Vietnam increased from approximately 246,000 in 2016 to more than 511,000 in 2025, representing growth of over 48%.

In 2025 alone, Vietnam recorded a 17% increase in Australian visitor arrivals, making it one of the fastest-growing destinations for the Australian outbound market and the top-performing destination in Southeast Asia, reported VNA.

Australian visitors enjoying discovering Vietnam's scenic spots.

Tourism experts attribute the strong growth to a combination of competitive travel costs, improving service quality and expanding air connectivity between the two countries.

The growing number of direct flights has made Vietnam more accessible to Australian travelers, while reducing travel times and increasing convenience.

Vietnam's rich cultural heritage, diverse cuisine, varied landscapes and welcoming atmosphere have also strengthened its appeal among international visitors.

From vibrant cities and UNESCO-recognized heritage sites to beaches, mountains and authentic local experiences, Vietnam offers a broad range of tourism products that appeal to different segments of the Australian market.

Industry insiders believe the positive momentum is likely to continue as Vietnam further develops its tourism infrastructure, expands international flight networks and promotes its image as a safe, accessible and value-for-money destination in Asia.

Phong Nha named among top nature-connected wellness destinations

Phong Nha in the central province of Quang Tri has been recognized by online travel platform Agoda as one of outstanding resort destinations connected to nature in Asia in 2026.

According to the provincial Department of Culture, Sports and Tourism, Agoda recently unveiled Asia's Hidden Nature Retreats for 2026, featuring places that offer visitors opportunities to unwind, restore mental well-being and recharge amid tranquil natural surroundings.

Phong Nha was selected alongside several renowned destinations across the region, including Labuan Bajo in Indonesia, Naoshima in Japan, Chiang Dao in Thailand, Udaipur in India and Cameron Highlands in Malaysia, VNN reported.

Phong Nha in the central province of Quang Tri is recognized by online travel platform Agoda as one of outstanding resort destinations connected to nature in Asia in 2026. (Photo: VNA)

According to Agoda, wellness and nature-based travel is gaining increasing popularity among travelers. Destinations offering tranquil landscapes, a clean environment, and experiences that promote physical and mental well-being are becoming top choices for many visitors.

Andrew Smith, Senior Vice President of Supply at Agoda, said destinations rich in natural resources are attracting growing interest by offering distinctive experiences that cater to rising demand for ecotourism and wellness travel.

Phong Nha is best known for its dramatic limestone karsts, vast primary forests and spectacular cave systems within the UNESCO-recognized Phong Nha–Ke Bang National Park. The area offers a wide range of outdoor and eco-tourism activities, including cave exploration, jungle trekking and nature-based activities.

Agoda highlighted that "Phong Nha is gaining recognition for its stunning limestone karsts and extensive cave systems, including the world-renowned Son Doong Cave." "Phong Nha's natural beauty and opportunities for eco-tourism make it an ideal spot for nature lovers and thrill-seekers alike.".

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