AGP Executive Report

US–Vietnam Trade: The U.S. Trade Representative has proposed new Section 301 duties of up to 12.5% on imports from Vietnam and other economies, saying they failed to effectively ban forced-labour goods—setting up another round of tariff pressure even as trade talks continue. Vietnam Economy Watch: AMRO cut its 2026 Vietnam GDP growth forecast to 7.2% and lifted its inflation outlook to 4.4%, warning stronger inflation pass-through could weigh on demand. Capital Markets & Policy: Vietnam is pushing capital market reforms to improve foreign investor access, while also moving to fast-track its international financial center and digitize systems like fuel station locating. Business & Investment: Hung Yen is strengthening its appeal to Japanese investors through deeper industrial integration, and BlockchainWork raised nearly $142,000 from Japanese backers to expand its blockchain talent network. Digital & Social Insurance: Vietnam requires social insurance for foreign workers with 12-month contracts, and is rolling out more digital tools to tighten supply chains and public services.

US-Vietnam Trade: The U.S. Trade Representative has launched a Section 301 investigation into Vietnam’s intellectual property protection and enforcement, with public comments due July 2 and possible tariff or non-tariff actions later. Vietnam Energy Policy: Vietnam is rolling out E10 biofuel nationwide, with new rules aimed at supply stability and consumer protection. Digital & Governance Updates: Vietnam is set to issue new complaint-resolution regulations from July 2026, and is also moving to complete a land database by end-2026. Regional Diplomacy: Vietnam and the Philippines are upgrading ties to an enhanced strategic partnership, with maritime security and economic cooperation high on the agenda. Business & Investment: Quanta is doubling investment in Vietnam, while HSBC is providing sustainability-linked trade facilities to Bach Hoa Xanh.

Philippines–Vietnam Upgrade: Presidents Ferdinand Marcos Jr. and To Lam elevated ties to an “Enhanced Strategic Partnership,” promising wider economic and deeper defense cooperation and people-to-people links—while a planned Senate meeting with Cayetano was canceled amid Senate leadership uncertainty. Vietnam Energy Push: Vietnam is accelerating onshore wind deployment to meet rising power demand and cut reliance on coal and gas, with experts pointing to offshore wind–hydrogen integration as a strategic option. US–Vietnam Trade Pressure: The U.S. opened a new probe into Vietnam’s intellectual property practices, adding to ongoing trade frictions. Vietnam Manufacturing Watch: S&P Global says Vietnam’s manufacturing PMI rebounded in May, with new orders returning to growth after April’s dip. Carbon Market Rules: Vietnam’s agriculture ministry is set as the sole authority for issuing and managing domestic greenhouse gas emission quotas and carbon credits on the national registry. Business & Mobility: Crystal expanded free vision screening for 38,000 workers across Vietnam, Bangladesh and Cambodia; Green GSM is also pushing all-electric ride-hailing expansion in the Philippines.

Philippines–Vietnam Upgrade: President Ferdinand Marcos Jr. and Vietnam’s President Tô Lâm elevated ties to an “Enhanced Strategic Partnership,” pledging wider cooperation in politics, defense, and people-to-people links, while also renewing a 2010 defense cooperation deal to boost maritime security, military education, and disaster risk management. South China Sea Focus: Marcos stressed that peace, stability, and freedom of navigation and overflight remain “non-negotiable,” pointing to UNCLOS and the 2016 South China Sea arbitral award as the basis for dispute resolution. Digital & Cyber Cooperation: The two sides also signed an MoU on information technology and digital transformation, aiming to coordinate against cross-border threats like internet fraud and trafficking. US Trade Pressure on IP: U.S. trade officials launched an investigation into Vietnam’s intellectual property practices, with concerns tied to how rights holders are protected. Trump Golf Resort Fallout: Reports say a Trump-branded $1.5 billion golf resort project near Hanoi has led to grave exhumations for affected households, sparking anger over compensation. Energy Policy Update: Vietnam rolled out E10 biofuel nationwide and is pushing public Q&A via a chatbot.

Philippines–Vietnam Upgrade: President To Lam’s Manila state visit lifted ties to an “enhanced strategic partnership,” with new pacts on defense, digital transformation, tourism and education, and a renewed focus on maritime security and law-enforcement cooperation. Vietnam–Philippines Defence Focus: The two sides also renewed a 2010 defense framework, aiming to boost information exchange and joint efforts against transnational crime, including online fraud and trafficking. E10 Biofuel Rollout: Vietnam begins nationwide E10 biofuel gasoline rollout on June 1, alongside efforts to keep fuel supply steady. US IP Probe: The U.S. launched a third investigation into Vietnam’s intellectual property protection and enforcement, with analysts linking it to broader trade pressures. Textile Green Digital Push: Vietnam urged TCF firms to accelerate digital and green transition, including circular economy steps, to stay competitive in export markets. Pangasius Prices Rise: Vietnam’s raw pangasius prices stayed high as export demand recovered, though fingerling costs are adding pressure for farmers. Vietnam Manufacturing Rebound: Vietnam’s PMI improved in May as new orders and output picked up, even as input costs kept rising. EV Charging Expansion: VinFast partners with ChargeZone to build a nationwide charging network in India, starting with co-branded stations.

Diplomatic Spotlight: Vietnam President Tô Lâm has arrived in Manila for a two-day state visit, the first by a Vietnamese Communist Party leader to the Philippines, as both sides look to deepen cooperation ahead of the 50th anniversary of diplomatic ties and a decade of strategic partnership. Regional Security & Strategy: At Singapore’s Shangri-La Dialogue, Vietnam’s leader used his keynote to warn of a crisis of international order, development models and strategic trust, arguing Asia-Pacific should be where solutions emerge—not just where problems converge. Defense Industry: Vietnam’s BrahMos cruise missile deal remains in focus, with reporting saying the agreement is already signed and Indonesia’s pact is nearing final stages. Trade & Digital Policy: Vietnam’s finance ministry is pushing to let SMEs use digital assets as collateral for bank loans, while other coverage highlights Vietnam’s digital ecosystem and tech awards. Tourism Pressure: Soaring costs tied to the Iran war are again raising concerns for tourism-dependent Southeast Asian economies, including Vietnam. Culture & People: A Vietnam-themed culinary feature spotlights Hanoi-to-Ho Chi Minh food experiences, from street classics to cooking classes.

BrahMos Breakthrough: India’s Defence Secretary Rajesh Kumar Singh confirmed at Singapore’s Shangri-La Dialogue that the India–Vietnam BrahMos supersonic cruise missile deal is already signed (not yet publicly announced), while an Indonesia pact is in the final stages—pushing India’s defence export push and deepening Vietnam’s security ties. Rules-Based Order: Vietnam’s President To Lam used the same forum to warn of an erosion of international law and a widening “trust deficit,” urging countries to move from crisis reaction to proactive dialogue and cooperation. US Trade Pressure: The U.S. opened a Section 301 probe into Vietnam’s intellectual property protection and enforcement, a move that could trigger tariffs or other trade measures. Prison Amnesty: Vietnam’s State President approved 2026 amnesty for 9,950 inmates meeting eligibility criteria, with officials calling it a humane, legal and political milestone. Vietnam–Singapore Momentum: Vietnam and Singapore leaders continued signing and discussing cooperation deals, with tech and innovation highlighted as key pillars.

Vietnam-Singapore Industrial Push: VSIP’s Vietnam-Singapore joint venture received investment certificates for five more industrial parks in Haiphong, Nghe An, Hue, Ha Nam and Ho Chi Minh City, lifting the network to 26 projects as leaders press for greener, smarter industrial growth. AI for Productivity: At GStar Summit 2026, Vietnam’s science ministry said AI and big data are key to boosting labour productivity, with priorities ranging from R&D and AI literacy to human-centric governance and workforce reskilling. Regional Security at Shangri-La: Vietnam’s To Lam told Reuters and the Shangri-La Dialogue that Vietnam won’t pick sides, but wants disputes in the South China Sea settled through international law while keeping dialogue with China. Maritime Trade Corridors: ASEAN defence ministers reaffirmed the need for free flow of trade through international corridors and stressed transit passage rights under UNCLOS, as regional tensions and shipping chokepoints remain in focus. Food Costs Watch: Asian rice prices jumped about 20% in May, with Vietnam among major suppliers facing risks from war-linked energy and fertiliser costs plus hotter weather. Older Persons Rights: Vietnam urged UNFPA support as it pushes talks toward a future UN convention on the rights of older persons. Tourism Link-Up: VietJet Air opened a Colombo office and plans new Colombo–Ho Chi Minh City flights from August 2026 to deepen Vietnam–Sri Lanka travel and trade ties.

Shangri-La Security: Vietnam President To Lam used the Shangri-La Dialogue keynote to warn that Asia-Pacific security is being squeezed by three converging crises, stressing that military power alone can’t guarantee safety and urging “self-restraint” amid a worsening international order. Vietnam–Thailand Economic Reset: In Bangkok, To Lam and Thai PM Anutin Charnvirakul opened the Thailand–Vietnam Business Forum and pledged deeper integration, targeting $25 billion in bilateral trade while pushing cooperation in AI, semiconductors, EVs and clean energy. Port & Trade Connectivity: Saigon Port–SSA welcomed the LNG-powered ZIM MOUNT RAINIER, marking the first LNG container ship on a direct route linking Vietnam with the US East Coast via major hubs. Digital Payments Push: Vietnam’s central bank and RBI signed an MoU to boost digital payments and cross-border QR transactions, with India-Vietnam partnership talks also expanding QR cooperation. Energy Transition: Vietnam instructed fuel suppliers to ensure continuous E5/E10 biofuel supply as the country moves to roll out E10 nationwide, aiming to cut emissions. Regional Diplomacy: ASEAN nations are preparing a high-level dialogue with Russia in Kazan, reflecting cautious, uneven member stances after the Ukraine war.

Vietnam–Singapore ties: President To Lam’s state visit to Singapore saw multiple cooperation deals, including supply-chain resilience, agrifood trade, advanced manufacturing research, and judicial and education links. AI in agri-food: CPF and FPT signed an MoU to push AI-led digital transformation across Vietnam’s feed-farm-food value chain, from smart farming to food safety and traceability. Energy projects: B.Grimm Power and PV Power agreed to develop the Vung Ang III LNG power plant in Ha Tinh, targeting commercial operation in 2030–31. Shipping boost: An LNG-powered ZIM container ship launched a new direct U.S. East Coast service calling at Saigon-SSA International Terminal, strengthening Vietnam–U.S. logistics. Finance & disputes: VIAC launched an expert panel for fintech and digital economy disputes in HCMC, aiming to support Vietnam’s financial center ambitions. Legal rights: Vietnam’s Ombudsman urged fair-trial protections for two Samoan nationals charged in a high-profile case, including access to counsel and consular support. Public debate: A viral video of Indian tourists doing Garba on a Vietnam airport tarmac sparked backlash over airport conduct and safety norms.

Vietnam–Thailand diplomacy: Vietnamese President To Lam met Thailand’s PM Anutin Charnvirakul in Bangkok as both sides marked 50 years of ties, pledging deeper cooperation on trade, investment, security and regional collaboration. Regional security & maritime order: In Tokyo, President Ferdinand Marcos Jr. said the Philippines will push to maintain a rules-based maritime order amid East and South China Sea tensions, underscoring the wider pressure on ASEAN waters. Tourism push: Gia Lai hosted Australian travel firms to boost sustainable tourism, pitching heritage assets like the Tay Son legacy and Gong Culture. Tech & investment: Samsung plans a major $1.5bn semiconductor testing plant in Vietnam, signaling continued momentum in Vietnam’s high-tech manufacturing. Energy & climate: Vietnam is stepping up forest fire prevention as extreme heat strains the power grid. Sports: Vietnam hosted the Asian Youth Championship (U-23), where Kyrgyzstan’s freestyle team won nine medals.

Vietnam–Singapore Diplomacy: President To Lam is in Singapore for a state visit and will deliver the keynote at the Shangri-La Dialogue, underscoring a new phase in bilateral ties. Regional Security & China: China is sending a PLA National Defence University delegation to Shangri-La for the second straight year, while analysts say any Xi trip to North Korea would carry major symbolic weight amid deeper Russia–North Korea links. Capital Markets: Vietnam’s private capital rebounded strongly in 2025, with private capital deployment doubling to about US$4.5 billion, but the report flags a key gap: no VC/PE-backed exits via IPO in recent years. Health Tech Investment: Mevion Medical Systems signed an agreement with Tam Anh General Hospital to supply a proton therapy system, expected to become Vietnam’s first proton therapy setup and start operations in late 2027. Innovation & AI Cooperation: Vietnam and Thailand are expanding cooperation in digital economy, AI, and innovation through a fresh science-technology and innovation cooperation step. Business & Trade Links: Vietjet and Muang Thai Insurance signed a strategic cooperation deal during To Lam’s Thailand visit, targeting insurance, sports, culture and community development.

Vietnam-Linked Travel & Tourism: Agoda says Vietnamese travellers are shifting to “fresh” beach, mountain and cultural spots for summer, with Lý Sơn in Quảng Ngãi Province leading emerging interest. Vietnam in Global Business: Samsung plans a $1.5 billion semiconductor testing plant in Vietnam, with documents pointing to operations by 2027. EV Update: VinFast has unveiled the second-generation VF 8, with deliveries expected to start in July for Vietnam buyers first. Health & Community: A volunteer-led Seafarer’s Medical Clinic in Honolulu marks 10 years of free care for immigrant fishermen, reflecting how Vietnam-linked maritime communities keep getting support. Ebola Watch: WHO reports a fast-moving Ebola outbreak in DR Congo, raising risk to “very high” as Bundibugyo strain spreads and health systems struggle. Regional Security: Pacific Partnership 2026 begins with stops including Vietnam, as the U.S. Navy and partners run humanitarian and disaster-prep missions across the Indo-Pacific. Immigration Enforcement: ICE arrested a Vietnamese national in Houston after 15 years in the community despite a removal order.

State Visit & Diplomacy: Vietnam’s President Tô Lâm will make a two-day state visit to the Philippines on May 31–June 1, with talks expected to cover trade and investment, food security, defense and maritime cooperation, education, tourism, and people-to-people exchanges—marking the 50th anniversary of diplomatic ties and a decade of strategic partnership. Energy & Climate Impact: Vietnam’s industry ministry warns a heatwave is already straining the national power grid, with power cuts reported in Hanoi and risks of worse conditions from July as El Niño returns. Semiconductors Push: Samsung plans to invest about $1.5 billion (39 trillion dong) in Vietnam to build its first semiconductor testing plant near Hanoi, targeting operations in November 2027 to help ease global memory-chip shortages. Retail Expansion: Pharmacity secured growth capital from LeapFrog Investments to expand its pharmacy network beyond 1,100 stores, including more Tier II–III cities, while also growing healthcare services. Tourism Recovery: Vietnam is seeing a strong rebound in Russian tourism, with direct air links expanding as Russian visitors drive renewed growth. Public Health & Safety: A Catholic charity in central Vietnam is handing over new toilets to low-income rural families to improve sanitation, safety, and dignity. Business & Tech: Vietnam’s power demand and grid management, plus growing digital and industrial initiatives, remain in focus as the country prepares for broader 2026–2035 development plans.

Everlane Fallout: Everlane co-founder Michael Preysman says he’ll launch a new brand built on the company’s transparency and sustainability values after Everlane’s sale to Shein sparked backlash. Memorial Day Focus: Across the U.S., communities marked Memorial Day with ceremonies honoring Vietnam-era sacrifice and Gold Star families, including tributes in Pasadena and other towns where veterans’ stories remain the centerpiece. Diesel Shock: Fuel costs stayed elevated after the Memorial Day weekend, with record-high diesel prices linked to supply disruptions tied to the Iran conflict and the Strait of Hormuz risk. Vietnam Legacy in the Spotlight: The week also carried major Vietnam-linked remembrances—Clarence B. Jones, a key adviser to Martin Luther King Jr. and a major voice on “Beyond Vietnam,” died at 95, while Vietnam veterans and families continued to push for lasting recognition through memorials and public events. Beauty Pageant Ripples: Thailand’s Miss Grand International said it’s cutting ties with Miss Eco International over unresolved controversy around contestant treatment and fees.

VinFast Leadership Shake-Up: VinFast has named founder Pham Nhat Quan Anh as chairman, signaling a recalibration of its global expansion as the EV maker navigates heavy losses and a tougher financial phase. Aviation Expansion: Vietjet is set to launch its first long-haul budget flights into Europe, starting October 10 with twice-weekly Hanoi–Prague services. Crime Crackdown: Vietnam police arrested two Samoan suspects linked to the killing of Sydney underworld figure Lorenzo Lemalu, with authorities alleging the attack was directed from abroad. Energy & Industry Push: The government approved a 2026-2035 supporting industries program, targeting higher localization rates across electronics, energy equipment, railways, autos, and automation. Travel Safety: Vietnam-linked coverage also echoes a wider aviation warning: airlines are tightening rules on power banks after incidents, urging passengers to keep chargers in carry-on only. Regional Context: Vietnam’s ties with Singapore and Thailand continue to deepen, while heat and climate risks remain a recurring backdrop for the region.