Vietnam Economic News: 8.5 - 15.5.2026
Summary of Vietnam Economic News: 8.5 - 15.5.2026
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Summary of Vietnam Economic News: 8.5 - 15.5.2026 ---
GREEN GSM PARTNERS WITH 75 PHILIPPINE TRANSPORT COMPANIES TO DEPLOY UP TO 18,497 VINFAST ELECTRIC VEHICLES
Dow Jones Newswires – 15 May 2026
Green GSM has signed agreements with 75 transport companies and cooperatives across the Philippines to support the planned rollout of up to 18,497 VinFast electric vehicles, including the VF 5/Herio Green and Limo Green models, for passenger transport and ride-hailing services. The expansion will cover major cities such as Manila, Cebu City, and Davao City, building on an earlier deployment of 2,500 vehicles with Xentro Group. Green GSM said the initiative combines its centralized electric mobility platform and operating standards with locally managed fleet operations and driver networks, aiming to accelerate large-scale adoption of sustainable urban transport across Southeast Asia. Vehicle orders are expected to be finalized with phased operations beginning in 2026.
WORLD BANK FORECASTS VIETNAM 2026 ECONOMIC GROWTH TO SLOW TO 6.8%
Reuters News – 15 May 2026
World Bank said on Friday that Vietnam’s economic growth is expected to slow to 6.8% this year, down from 8% last year, as softer global conditions and rising geopolitical tensions create a more challenging external environment. While the bank said Vietnam’s outlook remains solid, it warned that near-term risks remain elevated, particularly due to inflationary pressures linked to the Iran war, which pushed April inflation above the government’s 4.5% target. World Bank director for Vietnam, Mariam J. Sherman, said the oil shock has added to downside risks. The World Bank forecasts Vietnam’s inflation at 4.2% in 2026 and noted that the country’s banking sector is facing funding strains as credit growth continues to outpace deposit mobilisation. It also warned that a prolonged conflict in the Middle East could weaken Vietnam’s exports and intensify pressure on the banking sector and currency due to high corporate leverage and limited foreign exchange reserves. Despite these challenges, Vietnam continues to target annual GDP growth of at least 10% for this year and throughout the rest of the decade. The World Bank also urged the country to transition from a growth model driven by factor accumulation and bank-led finance toward one focused on productivity gains, deeper capital markets, and higher-quality foreign direct investment.
VIETNAM URGES BUSINESSES, HOUSEHOLDS TO CUT ELECTRICITY USE AS CONSUMPTION REACHES YEAR HIGH
Reuters News – 14 May 2026
The Vietnamese government has called on businesses and households to conserve energy as electricity consumption surges amid hot weather. State utility Vietnam Electricity (EVN) reported that electricity consumption reached its highest level of the year on Wednesday, hitting 1.1 billion kWh. During peak hours, coal- fired power plants accounted for 53.4% of electricity output, while hydropower plants contributed 26%. The government also warned that a new heat wave is expected to hit Vietnam in the final week of May, placing further pressure on the national power grid. In previous years, businesses and households in Vietnam, a major manufacturing hub, have experienced blackouts during periods of extreme heat. Meanwhile, EVN is seeking approval from the Ministry of Industry and Trade to increase retail electricity prices in order to offset accumulated losses, which reportedly stood at 5.6 trillion dong (US$212.4 million) at the end of last year. Elsewhere in the region, the Philippines on Thursday warned of potential power cuts lasting up to seven hours across its two main power grids due to extreme heat and power plant outages. (US$1 = 26,364 dong.)
VIETNAM STATE OIL COMPANY URGES US NAVY TO ALLOW TANKER THROUGH BLOCKADE
Reuters News – 13 May 2026
The trading arm of Petrovietnam Oil Corporation (PVOIL) has urged the U.S. Navy to allow a crude oil tanker carrying 2 million barrels of Iraqi oil to continue its voyage to Vietnam after the vessel was redirected amid the U.S. blockade on Iran. The Maltese-flagged tanker, Agio Fanourios I, had passed through the Strait of Hormuz using Iran’s designated shipping route before being turned back in the Gulf of Oman by U.S. forces enforcing sanctions-related restrictions. In a letter to U.S. military and diplomatic officials, PVOIL warned that the cargo was critically important for Nghi Son Refinery and Petrochemical (NSRP), whose crude inventories were reportedly running dangerously low, raising concerns over potential disruptions to fuel supplies, businesses, and public services in Vietnam. The incident comes amid escalating tensions linked to the U.S.-Israeli conflict with Iran, which has disrupted shipping through the Strait of Hormuz, a key global energy transit route.
FITCH AFFIRMS PETROVIETNAM POWER AT 'BB+'; OUTLOOK STABLE
Dow Jones Newswires - 13 May 2026
Fitch Ratings has affirmed the ‘BB+’ long-term foreigncurrency issuer default rating of PetroVietnam Power Corporation (PV Power) with a stable outlook, citing the company’s strong market position, diversified fuel mix, and long-term power purchase agreements with Vietnam Electricity (EVN), which account for around 85– 90% of its revenue. Fitch highlighted PV Power’s position as Vietnam’s second-largest electricity producer and a major gas-fired power generator, while noting that leverage is expected to remain low following the completion of the Nhon Trach 3 and 4 LNG power projects. The agency also pointed to ongoing risks from domestic gas shortages and exposure to climate transition pressures due to coal-fired generation, although it said the company’s growing LNG capacity and long-term supply agreements should support energy security and operational stability. Fitch added that PV Power’s ratings remain closely tied to those of its parent company, Vietnam National Industry - Energy Group (PVN), and ultimately to Vietnam’s sovereign credit profile.