Vietnam News Today (May 16): Vietnam Remains ASEAN Growth Leader in 2026 Despite Global Headwinds

	Vietnam News Today (May 13): Government Chief Hails Positive Developments in Vietnam-China Relations
	Vietnam News Today (May 14): Vietnam, Singapore Trade Unions Strengthen Cooperation in Workforce Development

Ministers and deputy ministers from BRICS member and partner countries pose for a group photo while attending the Expanded BRICS Foreign Ministers' Meeting in India on May 14. (Photo: VNA)

Vietnam proposes key cooperation orientations at BRICS Foreign Ministers' Meeting

Deputy Foreign Minister Nguyen Minh Hang has put forward a range of cooperation priorities between BRICS and partner countries at the Expanded BRICS Foreign Ministers' Meeting, underscoring the need to strengthen resilience through both internal capacity and international collaboration.

The meeting, themed “Building Resilience, Innovation, Cooperation and Sustainable Development,” opened on May 14 under the chairmanship of the Minister of External Affairs of India – the BRICS Chair in 2026. It brought together foreign ministers and senior officials from member states and partner countries.

Delegates focused their discussion on major orientations to enhance self-reliance, promote innovation, deepen cooperation and advance sustainable growth. They also addressed reforming the multilateral system and global governance, responding to global challenges, and shaping development opportunities for the Global South.

In her speech, she stressed that no country can withstand external shocks without a solid foundation of self-reliance combined with effective international cooperation.

She shared Vietnam’s approach to building an independent and self-reliant economy linked to deep international integration, while proposing several key areas for enhanced cooperation between BRICS and partner countries.

Vietnam called for stronger collaboration to ensure energy security and improve the resilience of supply chains for essential goods, including strengthening mutual support in energy supply, expanded cooperation in renewable energy and energy transition, and mechanisms to assist one another in response to external shocks.

Hang also emphasized the need to develop logistics infrastructure and strengthen intercontinental connectivity, while ensuring freedom, safety and security of maritime and aviation activities in line with international law.

In addition, the Deputy FM highlighted the importance of maintaining smooth flows of trade and investment, and stepping up cooperation in science, technology and digital transformation. She also underscored the need to uphold a rules-based, fair and inclusive multilateral trading system; and promote technology transfer, research and development, and the application of emerging technologies such as AI, semiconductors, biotechnology and green technologies, cited VNA.

She also proposed fostering new development ecosystems through institutional and governance reforms, with people at the centre as both drivers and beneficiaries. She also called for greater sharing of experience and development models and stronger cooperation in areas such as food security, water resources, pharmaceuticals and healthcare, aiming to enhance resilience and improve the quality of life.

In his opening remarks, Indian External Affairs Minister Subrahmanyam Jaishankar noted that the world is facing increasing uncertainties, calling for stronger cooperation among emerging economies. As BRICS Chair, India is promoting dialogue across key areas including development, energy, food security, supply chains and technology to support inclusive growth.

Participants voiced concern over pressing global challenges such as geopolitical tensions, supply chain disruptions, energy insecurity and unequal access to climate finance. They highlighted BRICS’ role in promoting sustainable trade, facilitating technology transfer and contributing to global standards in science and technology, particularly in artificial intelligence.

The meeting will continue on May 15 with a session focusing on reforming the multilateral system and global governance.

Vietnam, Cambodia boost supply chain connectivity

The Ministry of Industry and Trade (MoIT), together with Dong Thap provincial authorities, convened a local conference on May 15 to boost trade, investment and supply chain connectivity between southern Vietnam and Cambodia.

In his speech, Le Hoang Tai, Deputy Director of the MoIT’s Vietnam Trade Promotion Agency, said the two neighbors’ economic and trade ties have sustained positive momentum, fueling regional connectivity, supply chain stability and better livelihoods in border areas.

Under a shared strategic vision for the 2026–2030 period, Vietnam and Cambodia are moving beyond simple commodity exchange toward building a peaceful, friendly, stable and fully developed border zone. A top priority is fast-tracking key transport infrastructure, particularly expressway projects that connect southern Vietnam’s economic hubs with international border gates, laying the groundwork for seamless and efficient cross-border supply chains.

Ho Sivyong, Government Delegate and Director General of the General Department of Trade Support Services under the Cambodian Ministry of Commerce, described the gathering as a practical dialogue platform between government agencies and business communities, aimed at driving stable and sustainable border trade while deepening economic ties.

Participants discussed mechanisms and policies to facilitate bilateral trade and investment, production and trade cooperation in sectors of mutual strengths, logistics and border infrastructure, e-commerce and digital payment, and plans for more joint trade and investment promotion. Companies from both sides explored broader cooperation opportunities and gathered insights to forge supply chain linkages and expand border trade with Cambodia, according to VNA.

Visitors explore southern Vietnam's products (Photo: VNA)

The event also gave Vietnamese manufacturers, exporters and importers direct access to Cambodian partners operating in agro-forestry-fisheries, food, apparel, leather and footwear, and heavy industry.

Two-way trade has surged into a key pillar of bilateral economic cooperation in the Greater Mekong sub-region. The two countries share a land border of about 1,137 km, underpinned by a relatively developed network of international, main and auxiliary border gates that facilitate trade, logistics and cross-border investment.

Total two-way trade neared 10.1 billion USD in 2024, up 17.5% year-on-year and jumping to more than 11 billion USD in 2025. Vietnam’s key exports to Cambodia include apparel, iron and steel, petroleum, machinery and equipment, chemicals, and processed food. Its main imports are cashew nuts, rubber, farm produce, and industrial raw materials.

Both countries are targeting 20 billion USD in trade by 2030 by expanding formal trade channels, upgrading logistics and embedding more deeply into regional supply chains.

Vietnam remains ASEAN growth leader in 2026 despite global headwinds: WB

Vietnam is expected to remain one of ASEAN’s fastest-growing economies in 2026, supported by resilient exports, strong investment inflows and an ambitious reform agenda, despite mounting global uncertainties, according to the World Bank’s latest Vietnam Economic Update released on May 15.

According to the report, Vietnam’s GDP expanded 8% in 2025, the highest growth rate in ASEAN, while the economy grew 7.8% in the first quarter of 2026, marking its strongest quarterly performance in nearly a decade.

Speaking at a press briefing, Mariam J. Sherman, World Bank Division Director for Vietnam, Cambodia, and Lao PDR., emphasized that the country's growth momentum continues to be driven by robust exports, investment and a resilient domestic economy, alongside broad institutional reforms and major administrative restructuring.

However, she cautioned that softer global growth and rising geopolitical tensions are creating a more challenging external environment for Vietnam.

“This calls for further strengthening macroeconomic management while accelerating reforms,” Sherman said, adding that climate-related risks, demographic shifts, rapid technological changes and rising infrastructure demands are reshaping the foundations of long-term growth.

The report noted exports of electronics and high-tech products to the United States surged in 2025 as businesses accelerated shipments ahead of new tariff measures and benefited from the ongoing restructuring of global technology supply chains.

Public investment has also emerged as a key growth driver. Vietnam is implementing an infrastructure investment programme worth approximately US$320 billion over the next five years, alongside wide-ranging institutional reforms aimed at improving administrative efficiency and the business environment, reported VOV.

Mariam J. Sherman, World Bank Division Director for Vietnam, Cambodia, and Laos points to exports, investment and reforms as key drivers of Vietnam’s growth at the press briefing on May 15.

The World Bank said Vietnam’s medium-term outlook stays positive, with manufacturing and exports expected to continue serving as major growth engines. At the same time, the report emphasized the need to increase domestic value-added, strengthen linkages between foreign-invested and local enterprises, and improve labor productivity to sustain long-term growth.

Meanwhile, Tehmina S. Khan, the World Bank’s Lead Economist, said Vietnam is benefiting from the global artificial intelligence investment boom, with AI-related exports now accounting for nearly 30% of GDP, among the highest ratios globally.

Khan noted Vietnam is entering a “Doi Moi 2.0” phase, referring to a new wave of institutional and administrative reforms aimed at fostering private-sector development and improving economic competitiveness.

From 2025 through April 2026, Vietnam enacted more than 86 laws and around 300 decrees aimed at removing legal bottlenecks, improving the business environment and promoting private-sector growth.

Despite the positive medium-term outlook, the bank warned that the external environment is becoming increasingly volatile and unpredictable.

The report said conflict in the Middle East has triggered what the World Bank described as a major global oil shock, pushing energy prices up by more than 50% as of late April 2026 and creating additional pressures for oil-importing economies in East Asia.

For Vietnam, rising energy prices could place pressure on inflation, exchange rates, production costs and domestic consumption.

In this context, Sharma suggested that Vietnam continue strengthening macroeconomic management while accelerating reforms, saying the core challenge lies in effective implementation, ensuring sufficient resources, and sustaining the reform agenda, alongside managing external risks and domestic vulnerabilities.

The World Bank forecast Vietnam’s GDP growth to moderate to 6.8% in 2026 before recovering in 2027–2028 as external pressures gradually ease and domestic growth drivers strengthen.

To sustain long-term growth momentum, the bank recommended that Vietnam deepen capital market development, improve the efficiency of public investment and attract higher-quality FDI linked to technology transfer, innovation and stronger connections with domestic enterprises.

Vietnam among top destinations for Russian and Korean travelers in 2026

Vietnam has emerged as one of the leading overseas destinations for travelers from the Republic of Korea and Russia in the first quarter of 2026, according to newly released tourism statistics from both markets.

A report by Yanolja, the RoK’s first private research institute for the travel & tourism industry, showed that outbound travel by Koreans reached a record high in the first quarter of 2026, with 8.331 million overseas trips recorded - the highest quarterly figure ever reported.

Japan was the most popular destination among Korean travelers, attracting 3.058 million. Vietnam ranked second with 1.326 million arrivals, followed by China with 811,000 travelers.

Amid rising travel costs, Korean tourists are increasingly favouring nearby destinations and showing stronger interest in more budget-conscious travel options, the report noted.

Meanwhile, the Association of Tour Operators of Russia (ATOR) reported that the number of trips made by Russian tourists to the world’s top 25 travel destinations rose by around 16% year on year in the first quarter of 2026, cited VOV.

Russian tourists are welcomed at Da Nang International Airport (Photo: Huong Thuy)

Based on total outbound trips during the period, the 10 most popular destinations among Russian travelers were Thailand, China, Turkey, Egypt, the United Arab Emirates, Vietnam, the Maldives, Indonesia, Sri Lanka and Malaysia.

Among them, Vietnam stood out as one of the fastest-growing destinations, with visitor numbers in the first quarter of 2026 nearly tripling compared with the same period last year.

The sharp increase was partly attributed to a low comparison base in the first quarter of 2025, when charter flights from Russia to Vietnam only resumed in March last year. In addition, many Russian travelers reportedly shifted their travel plans to Vietnam following the outbreak of conflict in the Middle East in late February 2026.

Northern Vietnam faces severe heat before cold front brings rain

Northern and central Vietnam are experiencing an intense heatwave, with temperatures in several areas exceeding 38C.

Meteorologists forecast that a weak cold air mass arriving around May 17 will trigger widespread thunderstorms and bring an end to the prolonged hot spell.

Heatwave intensifies across multiple regions

According to the National Center for Hydro-Meteorological Forecasting, the expansion of a western low-pressure zone toward the southeast is continuing to fuel widespread hot weather across many parts of the country, with some areas experiencing severe heat conditions.

On May 15, northern and central Vietnam are expected to reach the peak of the current heatwave.

Temperatures in many areas are forecast to range between 36C and 38C, with some places surpassing 38C, while outdoor surface temperatures may climb above 40C.

Low humidity levels are also making conditions feel increasingly oppressive, reported VNN.

Prolonged hot weather has affected many areas nationwide. Photo: Hue EX

Specifically, northern Vietnam - excluding Dien Bien and Lai Chau provinces - along with areas from Thanh Hoa to Da Nang and eastern localities stretching from Quang Ngai to Dak Lak are expected to experience widespread heat and severe heat, with maximum temperatures commonly reaching 36C-38C and some areas above 38C.

The lowest humidity levels are forecast at around 45-50%.

In southern Vietnam, hot weather is also continuing, with temperatures ranging from 35C to 36C and some areas exceeding 36C.

Humidity levels there are expected to remain around 50-55%.

By May 16, the heatwave in northern Vietnam is forecast to ease slightly but remain widespread, with temperatures generally ranging from 35C to 37C and some locations still above 37C.

Cold air to trigger thunderstorms from May 17

Meteorologists say the widespread heatwave in northern Vietnam could end around May 17 as a weak cold air mass begins affecting the region.

From the night of May 16-17, scattered showers and thunderstorms are forecast across northern Vietnam, with some areas likely to experience heavy to very heavy rainfall.

The storms are expected to bring an end to the prolonged heatwave.

In areas from Thanh Hoa to Da Nang and eastern localities stretching from Quang Ngai to Dak Lak, scattered showers and thunderstorms are expected from the afternoon and evening of May 17, mainly concentrated later in the day.

Other regions may also experience isolated showers and thunderstorms, with some areas seeing scattered evening rainfall.

According to weather experts, the late-season cold air mass is expected to primarily bring thunderstorms to northern Vietnam and mountainous areas from Thanh Hoa to Ha Tinh.

As the cold air collides with hot and humid air near the surface, large temperature differences may create conditions for extreme weather events including tornadoes, lightning, hail and strong winds.

Meteorological authorities also forecast that over the next month, heatwaves are likely to intensify across northern Vietnam, areas from Thanh Hoa to Hue and the south-central coastal region.

The number of hot days in northern and central Vietnam is expected to remain above long-term averages, while southern Vietnam may gradually cool down toward the end of May.

However, scattered nationwide periods of showers and thunderstorms are still likely.

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