Vietnam will continue working closely with the US to soon finalise a fair and balanced reciprocal trade agreement, Prime Minister Le Minh Hung said during his reception for Ambassador Rick Switzer, Deputy US Trade Representative, in Ha Noi on May 20, according to VGP,Viet Nam Government Portal.

Hung said the agreement would help further deepen economic, trade and investment cooperation as the main driving force for Vietnam-US relations.

He stressed that Vietnam does not pursue a policy of overcapacity and that Vietnamese enterprises operate under market principles. He noted that the two economies are complementary rather than directly competitive.

Vietnam and the US will continue working towards a fair and balanced reciprocal trade agreement, Prime Minister Le Minh Hung said during talks with Deputy US Trade Representative Rick Switzer.
Both sides said the pact would deepen economic, trade and investment ties, while Vietnam reaffirmed its stance on market principles, forced labour and IP protection.

He also emphasised that Vietnamese law strictly prohibits all forms of forced labour, adding that Vietnam has actively implemented international commitments in this area, including conventions of the International Labor Organisation (ILO) and obligations under various free trade agreements.

He also reiterated that firmly combating and strictly handling violations of intellectual property rights remain a national priority of Vietnam.

Switzer underscored the significance of a reciprocal trade agreement for bilateral economic and trade cooperation. He praised the constructive cooperation and goodwill demonstrated by Vietnamese ministries, agencies, and the government negotiating team throughout the negotiation process.

He affirmed that both the Office of the US Trade Representative and he personally would continue to work closely with Vietnamese counterparts to soon reach the agreement, contributing to further advancing Vietnam-US relations in the years ahead.

Fibre2Fashion News Desk (JP)

The global economy is under stress as the crisis in the Middle East clouds the growth outlook, stokes inflationary pressures and adds to uncertainty across financial markets, according to the United Nations’ World Economic Situation and Prospects 2026: Mid-Year Update.

Global growth is now projected at 2.5 per cent in 2026 and 2.8 per cent in 2027—downward revisions to an already subdued outlook.

The global economy is under stress as the Middle East crisis clouds the growth outlook, stokes inflation and adds to uncertainty across financial markets, the UN ‘World Economic Situation and Prospects 2026: Mid-Year Update’ said.
Global growth is projected at 2.5 per cent in 2026 and 2.8 per cent in 2027—downward revisions to a subdued outlook.
Millions are at risk of being pushed into poverty.

Although these revisions are modest, forecast uncertainty has risen considerably, as outcomes hinge on the conflict’s duration and scale; a faster-than-expected resolution could restore confidence, while a prolonged disruption would deepen the downgrade, says the report.

The closure of the Strait of Hormuz is driving fuel, fertiliser and food prices higher and straining global supply chains. Global inflation is now expected to reach 3.9 per cent in 2026—0.8 percentage points above the January forecast—reversing a disinflationary trend and eroding household purchasing power.

Financial market volatility has increased, with risks of renewed portfolio outflows and tighter external financing conditions if the conflict persists. Central banks are expected to hold rates higher for longer to curb inflation, while governments face rising fiscal pressures from weaker growth alongside necessary expenditures to cushion crisis impacts, the report notes.

Resilient labour markets and artificial intelligence (AI)-driven trade and investment support global activity, but are unlikely to fully offset widespread headwinds.

The outlook is most challenging for fuel- and food-importing developing economies, where surging import costs risk widening fiscal deficits, straining external balances and deepening food insecurity.

Low-income households—which spend the largest share of their budgets on food and energy—bear the heaviest burden, with millions at risk of being pushed into poverty.

Combined with declining aid flows and mounting debt-service costs, these pressures threaten to reverse hard-won development gains and further slow progress toward the UN Sustainable Development Goals, the report adds.

Fibre2Fashion News Desk (DS)

ICE cotton futures witnessed weak sentiments yesterday mainly because of improving rainfall forecasts across major US cotton growing regions. Although, US cotton prices noticed mixed trend where nearby contracts posted losses, but distant contracts were traded higher in the market.

The most traded contract July 2026 settled at 81.60 cents down 0.73 cent or 0.89 per cent. The contract recorded fifth decline in the last 7 sessions, with cumulative losses of 617 points during the period. December 2026 contract posted 0.20 cent drop to settle at 82.96 cent per pound. December contract posted losses of 444 points in last five sessions out of 7 sessions. Other contracts finished mixed ranging from 31 points lower to 29 points higher.

ICE cotton futures remained under pressure as improving rainfall forecasts across major US cotton-growing regions eased crop concerns and weighed on market sentiment.
The July 2026 contract fell 0.89 per cent to 81.60 cents, marking its fifth decline in seven sessions.
Lower crude oil prices, subdued trading activity, and weak speculative participation also added bearish pressure on cotton prices.

Total daily trading volume was 52,977 contracts, marking the lowest volume in the last two and half weeks. Previous session cleared volume stood at 60,785 contracts.

Market sentiment remained weak mainly due to improving rainfall forecasts across major US cotton-growing regions. Drought-monitoring data showed cotton areas experienced historically severe dryness, during the last three months, but forecasts now suggest increased rainfall over the next 2–3 weeks. Weather forecasts specifically indicated better moisture chances across West Texas, the Southern Plains, and southeastern US cotton regions.

Market analysts said that expected rainfall in West Texas and southeastern areas continued to pressure cotton prices. Falling crude oil prices added additional downside pressure on cotton futures.

International crude oil prices dropped to their lowest level in nearly six weeks. Lower crude oil prices reduce polyester production costs, making synthetic fibres cheaper and weakening cotton demand competitiveness.

Traders also monitored geopolitical developments including Russia-Ukraine ceasefire discussions and ongoing Middle East tensions.

ICE certified cotton stocks as of May 19 were reported at 203,403 bales. Previous day ICE certified stocks were 203,491 bales, showing a slight daily decline.

Overall market tone remained cautious to mildly bearish due to improving weather outlook, weak crude oil markets, low speculative participation, and subdued trading activity.

This morning (Indian Standard Time), ICE cotton for July 2026 was traded at 80.91 cents per pound (down 0.69 cent), cash cotton at 78.60 cents (down 0.73 cent), the October 2026 contract at 82.58 cents (down 0.31 cent), the December 2026 at 82.15 cents (down 0.81 cent), the March 2027 contract at 83.01 cents (down 0.76 cent) and the May 2027 contract at 83.51 cents (down 0.71 cent). A few contracts remained at their previous closing levels, with no trading recorded so far today.

Fibre2Fashion News Desk (KUL)