AGP Executive Report

Memorial Day travel mood: With flags up and ceremonies underway across the U.S., the holiday weekend is also showing up in travel choices—amid safety worries and higher costs, more travelers are dropping Dubai and Abu Dhabi for trips to Thailand, Vietnam, and Sri Lanka. Vietnam tourism push: Vietnam’s summer travel demand is getting a boost from new connectivity, including Sun PhuQuoc Airways launching a direct Phu Quoc–Hong Kong route (5 flights/week) to strengthen tourism and cultural ties. Investment & culture signals: Sri Lanka is pitching itself to Vietnamese investors with a pipeline of projects after recovery gains, while Vietnam’s film scene scores internationally as “Quan Ky Nam” wins Best Director at the Asian Art Film Festival. Nature finance: Vietnam also highlighted biodiversity funding at Con Son–Kiep Bac, pointing to diversified mechanisms and trillions of VND mobilised for conservation.

Tourism Investment Push: Sri Lanka is pitching itself hard to Vietnamese investors, saying it has rebuilt stability after a deep crisis and is ready with a pipeline of opportunities—growth is projected to keep rising into 2026, with tourism earnings climbing alongside exports. Regional Travel Signals: Singapore is doubling down on MICE and cruise with plans for a downtown hub near Marina Bay, while Thailand has tightened visa-free rules for many countries, cutting stays to 30 days after concerns about overstays and disorder. Vietnam Momentum: In southern Vietnam, Meliá is expanding Ho Tram with a new Indochine residences project and more suites, targeting a 2028 opening. Sustainability & Resilience: Tokyo is coordinating a network of 55 cities to boost climate and disaster resilience, from emissions cuts to coastal protection. Practical Travel Note: Emirates is rolling out its accessible travel “Travel Rehearsal” program in Ghana to reduce anxiety for passengers with autism.

Memorial Day Focus: Run for the Wall riders rolled through Bedford County, stopping at Montvale Elementary on their way to the Vietnam Veterans Memorial in Washington, D.C., keeping the POW/MIA mission front and center. Vietnam Travel & Tourism: Vietnam’s tourism story is getting a fresh push—Hanoi is leaning toward sustainable, high-value markets, while Da Nang keeps expanding airport capacity and international terminal plans. Aviation & Routes: VietJet is preparing a long-haul leap with Hanoi–Almaty–Prague flights from 10 October 2026, signaling more Europe-bound options for travelers. Travel Deals & Comfort: Airlines are still experimenting with low-cost “bid for an upgrade” business-class offers, with prices sometimes far below standard fares. Tech in Travel: Marriott Bonvoy says loyalty in Asia-Pacific is driven more by food and in-trip experiences than one-size-fits-all trends, with Vietnam flagged among experience-seeking markets.

Aviation Boost for Central Vietnam: Da Nang International Airport has started expanding Terminal 2 with a nearly VND 1.5 trillion project, aiming to lift international capacity as passenger numbers have surged far beyond the terminal’s original 4 million design. Travel Costs Watch: Ahead of summer demand, Vietjet and Bamboo Airways have raised checked baggage fees by about 15–25%, adding pressure to already tight travel budgets. New Route to Phu Quoc: Sun PhuQuoc Airways will launch the first full-service direct flights between Singapore and Phu Quoc, with tickets on sale now and inaugural service set for July 25. Tourism Experiences: Hoi An’s Merchant River Cruise is set to sail in May 2026 on the Thu Bon River, adding a new luxury dinner-and-culture option for visitors. Industry & Culture: Da Nang Asian Film Festival announces DANAFF Industry Days, bringing studios and international buyers together in late June/early July.

Middle East Shockwaves: The US-Iran conflict is still reshaping travel and regional security, with Gulf states facing mounting pressure as attacks on infrastructure and bases force rethink of “security umbrellas” and energy planning. Memorial Day Travel Mood: As Memorial Day nears, US communities are filling calendars with parades and cemetery tributes—an emotional reminder that Vietnam-era service remains part of the story. Japan Inbound Softening: Japan saw foreign visitors dip 5.5% in April to 3.69 million, blamed on Middle East-linked flight disruptions and a China diplomatic row—though Vietnam still hit record highs for April. Vietnam Travel Angle: Can Tho is pushing for new international routes (South Korea, Malaysia, Thailand, Japan, China) as passenger growth shifts demand beyond Hanoi/Ho Chi Minh. Deals & Disruption: Some airlines are cutting routes and raising costs, but discount hotel offers are emerging in nearby markets for travelers hunting a “sweet spot.”

Putin-Xi Summit: Putin arrived in Beijing on May 19 and met Xi in the Great Hall of the People, underscoring a tighter anti-West axis as Russia leans on China for energy and markets. Aviation Rules for Half-Term: UK-bound travellers face stricter power-bank rules ahead of the May holiday rush, with airlines tightening how lithium devices can be carried. Ebola Watch in Asia: Governments across Asia are stepping up border screening and quarantine readiness after WHO’s Ebola alert, including new monitoring in Vietnam and neighbouring countries. Hanoi Mega Project: Hanoi broke ground on a 90m-wide National Highway 1A spatial axis corridor (about 36km) with an estimated $6.4bn investment, aiming to speed urban renewal. Travel Costs Pressure: Rising fuel and energy prices are starting to weigh on Asia’s peak-season tourism, with airlines feeling the squeeze. Vietnam Tourism Upscale: Vietnam’s luxury hotel race keeps heating up, with new openings and plans signaling higher-end demand.

Peso Pressure: MUFG says the Philippine peso is Asia’s weakest currency, sliding 6.6% since late February as US-Iran tensions and oil volatility keep investors cautious. Thailand Visa Shift: Thailand has ended its 60-day visa-free program, with plans to revert to shorter stays (expected 30 days) and tighten screening. Port Profit Boom: Cambodia’s PPAP reports Q1 net profit up nearly 40% on stronger container throughput and port services. Vietnam Defence Links: India’s Rajnath Singh met Vietnam’s President To Lam and Defence Minister Phan Van Giang, reaffirming deeper defence and maritime cooperation. Vietnam City Momentum: Dong Nai’s upgrade to Vietnam’s 7th centrally-run city (from April 30) is framed as a push toward services, tourism and innovation, with Long Thanh Airport seen as a key catalyst. Travel & Culture: KKday launches early 2026 Yi Peng Lantern Festival packages in Chiang Mai.

India–Vietnam Defence Talks: India’s Defence Minister Rajnath Singh met Vietnam’s Phan Van Giang in Hanoi, reviewing defence partnership and pushing deeper cooperation on maritime security, defence industry, training and regional stability, while also inaugurating a language lab at the Vietnam Air Force Officer College and signing MoUs on AI and quantum tech. Culture & Tourism: Nghe An kicked off the 2026 Sen Village Festival, with Kim Lien designated a national tourism area—another boost for Ho Chi Minh’s late homeland tourism; and Khanh Hoa is gearing up for a summer festival run from June to August, spotlighting the Cham Cultural Festival and the Khanh Hoa Sea Festival (July 17–19). Travel & Community: Hostelz launched a community-driven Backpacker Budget Planner aimed at ending “guesswork” for hostel-based trips, while Agoda’s survey puts Vietnam among the top family-travel markets in Asia. Local Planning: Vietnam’s special mechanisms for delayed projects look set to clear legal bottlenecks tied to land and investment issues.

Memorial Day spotlight: Across the U.S., communities are rolling out ceremonies and tributes for the 250th anniversary—Jacksonville’s Veterans Memorial Wall event is set for May 25, while Lakeside Chautauqua will host the Vietnam Traveling Memorial Wall from May 28 to June 1 in Ohio. Vietnam–Israel ties: In Jerusalem, Israel’s President Herzog welcomed Vietnam’s ambassador, calling Vietnam a dynamic Southeast Asia partner and highlighting cooperation in trade, high-tech agriculture, education, and people-to-people links. Defense diplomacy: India’s Defence Minister Rajnath Singh begins a four-day Vietnam visit focused on defence industry partnerships and maritime cooperation, with talks expected to cover South China Sea issues. Tourism & safety: A “vulnerable” British tourist has been missing in Vietnam for over a month, prompting an urgent family appeal. Local development: Dong Nai is pushing a new growth model beyond traditional industrial expansion, as it repositions after its status elevation and the Long Thanh airport push.

Ebola Watch at Borders: Vietnam has tightened Ebola screening and surveillance at border gates and medical facilities after WHO flagged outbreaks in Congo and Uganda, urging travelers to monitor symptoms for 21 days and avoid contact with suspected cases. Tourism Push Meets Execution Gaps: Vietnam’s tourism is entering a “new growth era” with fresh Party and Government resolutions, but bottlenecks at local and corporate levels still slow progress—especially as the industry shifts toward smarter, data-driven experiences. Mega-City Planning: Ho Chi Minh City approved a 2025–2050 master plan with a 100-year vision to become a sustainable, innovative mega-city, targeting at least 10% GRDP growth annually to 2050. Luxury Hotels Race: Ritz-Carlton announced plans to open its first Vietnam hotel, adding pressure on the luxury market as global brands expand. Weather Disruption: Severe storms and flooding hit multiple regions, including HCMC and northern provinces, damaging infrastructure and disrupting major transport routes. Sea Festival Countdown: Khanh Hoa set July 17–19 for its 2026 Sea Festival in Nha Trang, with cultural, sports and tourism events.

Scam crackdown ripple: Sri Lanka is seeing a surge in arrests of suspected foreign cyber scammers, with officials warning many networks pushed out of Cambodia and Myanmar are shifting to the island—helped by relaxed visas and fast internet—after more than 1,000 foreigners were detained since the start of 2026, including people from China, Vietnam and India. Vietnam travel policy: Vietnam’s Ministry of Public Security says it will tighten management of foreigners while keeping relatively open visa rules, citing record arrivals (22.8 million in 2025; 9 million already in 2026) and warning some visitors have exploited easier entry for alleged illegal activity. Culture & heritage tourism: Da Lat will host Vesak 2026 with 15 experiential activities (May 23–25), blending Buddhist rituals with public cultural programs. Food diplomacy: A “Pho” Cultural Roadshow Europe 2026 is set to take Vietnam’s signature dish across Europe, using overseas Vietnamese networks to boost cultural pride and community links.

Foreigners Watch: Vietnam says foreign arrivals hit record highs in 2025 and are surging in 2026, but it’s tightening management as some visa-friendly rules are allegedly being exploited for illegal activity—so expect more scrutiny at entry and during stays. Halal Push: Vietnam launched the HalalViet Promotion and Experience Centre in Hanoi to help firms meet global halal standards and access markets, with an e-commerce platform planned to speed up connections. Tourism & Heritage: Phuoc Tich village near Hue is drawing visitors with 500-year-old wooden houses and heritage tourism, while Hoi An’s banh dap keeps local Quang culinary traditions alive. Regional Safety: Cambodia rescued two South Koreans from scam-related captivity, highlighting how recruitment scams keep shifting across Southeast Asia. Travel Retail Charity: Singapore’s Moodie Davitt Report will host SwanSong Smiles in 2027 for Smile Train, tying travel retail to real-world impact.

Summer Beach Push: Vietnam’s coastal tourism is ramping up early for the 2026 peak season, with Da Nang leading (over 1.46 million visitors from Apr 25–May 3, up 35% year-on-year) as families and short-break travellers book ahead. Cruise & Holiday Travel: Oceania Cruises has rolled out global holiday sailings for 2026–27 and 2027–28, including itineraries that feature Vietnam among other destinations. Regional Links: A “Meet Guangxi (Baise)” tea-and-culture event in Hanoi is using tourism as a bridge to deepen China–Vietnam people-to-people ties. Naval Diplomacy: A Royal Canadian Navy ship has started a visit to Da Nang, with exchanges and sports activities plus stops tied to local culture and tourism. Safety & Travel Disruption Watch: Jet fuel shortages are still looming, but airlines are cutting schedules—easing cancellations in some markets. Hotel Spotlight: Sofitel Legend Metropole Hanoi has been named among Travel + Leisure’s 2026 world’s 500 best hotels.

Hotel Spotlight: Sofitel Legend Metropole Hanoi makes Travel + Leisure’s 2026 “world’s 500 best hotels” list for the sixth straight year, adding to its Michelin Key and other global accolades. Urban Planning: A HCM City forum is pushing sustainable high-rise development, with speakers focusing on transit-linked growth, affordable housing, and greener city design. Tourism & Development: Phu Quy special zone is leaning on marine eco-tourism and fisheries to lift livelihoods, reporting 155,000 visitors in 2025 and tourism revenue above 200 billion VND. Travel Policy: Vietnam’s Ministry of Construction proposes higher advance compensation for delayed/cancelled flights (plus vouchers and frequent-flyer points) and longer payout timelines. Regional Security: Malaysia says visa-exemption rules are being exploited by scam rings after US$14.7m raids, while GOF Kelantan detained 360 illegal immigrants since January. Culture & Food: A food-and-drink festival with 70 stalls returns to town, and Sriracha’s Vietnam-linked origin story keeps trending.

Digital Push: Vietnam has approved a plan to make all citizen–state transactions fully digital by 2035, with population data and e-identification at the core and personalized services across healthcare, education, transport and more. Tourism Momentum: River cruising is surging “closer to home,” with Mekong bookings up sharply as Australians pivot from Europe and better flight links boost demand. Connectivity & Travel: Vietnam–New Zealand ties got a boost at the 33rd ASEAN–New Zealand Dialogue in Christchurch, with both sides urging faster air services and deeper cooperation. Security & Mobility: A US case highlights how Vietnamese nationals are being smuggled into the country via Washington’s Point Roberts, while Vietnam’s broader regional focus remains on smarter borders and digital governance. Health Watch: An Andes hantavirus cruise outbreak is raising fresh pandemic-readiness questions, even as experts stress it’s unlikely to spread like COVID.

Tourism & Transport: Can Tho is pushing to bring back direct international flights as foreign arrivals increasingly route via other gateways, with ACV saying international passenger numbers still haven’t fully bounced back. Urban Growth: In HCMC, experts warn Vietnam’s high-rise boom needs greener, people-centered planning tied to public transport and climate resilience. Infrastructure Push: Ho Chi Minh City is urging agencies to start the Thu Thiem–Long Thanh railway before July 2, aiming to tighten links between the airport and the city core. Digital Government: Vietnam targets fully digital public services by 2035 under “Project 06,” building population data, digital ID and online administration. Culture & Travel: Khanh Hoa is betting on a wider tourism ecosystem—heritage, immersive experiences, and new cultural products—to lift its international appeal. Security & Travel Risk: HCMC continues a counterfeit crackdown, while Indonesia is reviewing its visa-waiver policy after foreign-linked scam abuses.