Hanoi: Gulf War is slowing the economy and driving up inflation

Today’s headlines: US and Iranian forces continue the search for the American pilot who went missing after his aircraft was shot down; Tokyo wants to ease restrictions on defence exports, opening the door to lethal weapons; At least eight people have died in Afghanistan following a 5.9-magnitude earthquake; The Phnom Penh Parliament approves first legislation to combat online scam centres.

VIETNAM

Vietnam’s economy slowed in the first quarter compared to the previous quarter, due to heavy exposure to oil imports from the Middle East, which are driving inflation and putting annual growth targets at risk. GDP rose by 7.83% between January and March compared to last year, but this is below the 8.46% recorded in the fourth quarter of 2025. Consumer prices rose by 4.65% in March, driven by a 10.81% increase in transport costs, which saw a further surge from 3.35% in February.

IRAN - USA - GULF

US and Iranian forces are continuing the search for a missing American crew member after the F-15 fighter jet he was aboard was shot down. His fate remains unknown at present, whilst his colleague on board the aircraft was rescued. Iranian officials are urging citizens to find him ‘alive’ and have offered a reward for his capture, claiming they have also shot down a second military aircraft – an A-10 Warthog – engaged in a search-and-rescue mission. Tehran has also carried out the death sentence on two men for “links” to an opposition group, the Mojahedin, and for carrying out armed attacks. A drone strike by the Islamic Republic has triggered a fire at a refinery in Basra.

JAPAN

Tokyo intends to ease restrictions on defence equipment exports by the end of April. This is according to a government draft presented yesterday, which opens the door to the overseas sale of weapons, including those with lethal capabilities. Parliament will only be informed once the process has been completed, a move likely to provoke criticism and concern from the opposition, which is opposed to the arms race. The current rules, which limit exports to five non-combat categories – rescue, transport, warning, surveillance and mine clearance – will be scrapped.

AFGHANISTAN - PAKISTAN

At least eight people have died in the earthquake that struck Afghanistan yesterday, causing a house in Kabul to collapse. A child is among the injured, according to the National Disaster Management Authority. The epicentre of the 5.9-magnitude quake was in the Hindu Kush region, at a depth of 177 km. Strong tremors were also felt in Islamabad, Pakistan, and New Delhi, India.

CAMBODIA

Parliament yesterday approved the first law aimed at cracking down on online fraud centres, accused of defrauding victims in various countries around the world to the tune of billions of dollars, as pressure mounts on governments to crack down on illegal activities.

Justice Minister Keut Rith said he aims to improve ‘clean-up operations’ across the country, as well as preventing the reopening of such businesses. In reality, despite the crackdown announced by Phnom Penh in recent months, new licences have been issued to casinos with clear links to online fraud hubs.

SRI LANKA

Sri Lanka is struggling to prevent a repeat of the economic collapse of four years ago, facing already evident repercussions and challenges linked to the protracted war in the Middle East, compounded by the aftermath of last November’s devastating cyclone. President Anura Kumara Dissanayake has rationed fuel, increasing its price by a third, and raised electricity costs by up to 40% since the conflict began disrupting global supplies.

RUSSIA - INDIA

The proportion of workers from India on construction sites across Russia continues to rise, as they are gradually replacing migrant workers from other foreign countries. This was stated by the president of the National Association of Builders, Anton Gluškov, fulfilling the aims of the new migration laws which seek not to reduce but to replace migrant workers, although the vast majority still come from Central Asia.

TAJIKISTAN

Citing “expert analysis”, President Emomali Rakhmon stated during a visit to the Sogd region that production costs will rise at an unprecedented rate this year. Among the causes are “recent global events” and “climate change with its unpleasant consequences”. He urges farmers to make use of “every favourable spring day and every patch of land” for the development of the economy and the “dignified life of the people”.

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