FE CREDIT Faces Profit Decline Amid Intensifying Competition

Key pointsIn the first half of 2026, profits of six consumer finance companies in Vietnam increased by 37%, but FE CREDIT is struggling due to credit risk provisions and competition with VietCredit. As market competition intensifies, FE CREDIT needs to explore new strategies.
Business impactJapanese companies should closely monitor FE CREDIT's trends and consider revising risk management and strategies in the consumer finance market.

Key pointsFour new regulations and five tax circulars will be announced on June 30, 2026, and will take effect from July 1. Small businesses are struggling to keep up with frequent tax changes and are required to respond appropriately. The rapid changes in tax standards make it difficult for businesses to understand and comply with new regulations.
Business impactJapanese companies need to establish a flexible system to respond to sudden tax changes. It is particularly important to provide advice based on the latest tax regulations when dealing with small businesses.

Key pointsHeineken announced plans to invest an additional $500 million in Vietnam over the next 5 to 10 years to build Asia's largest brewery. CEO Jacques van der Linden from Amsterdam described Vietnam as 'one of the most attractive markets in the world,' with total investments since 1991 reaching approximately $1 billion. The new investment aims to strengthen competitiveness in the high beer consumption market of Vietnam.
Business impactThis investment plan may provide new business opportunities for Japanese companies amid increasing competition in the Vietnamese market. It is particularly important to monitor Heineken's trends in the manufacturing and distribution sectors.

Key pointsStarting September 2026, Vietnam's railway industry will implement a policy to reduce fares by up to 40%. Notably, sleeper train fares will see significant discounts, and round-trip tickets and early purchase benefits will also be offered. This aims to meet travel demand and improve transportation efficiency. Additionally, ticket sales will begin at Saigon Station in preparation for Tet (Lunar New Year) in 2027.
Business impactJapanese companies should monitor this development and assess its impact on related transactions, contracts, and local operations.

Key pointsVietnam's tax authorities have announced a method for verifying whether companies are in an 'inactive at registered address' status. Citizens can input their tax number and check on the tax office's website. This status applies when a tax investigation determines that a company is not operating at its registered address. Over 95,000 companies completed tax number closure procedures in the eight months of 2026.
Business impactJapanese companies that neglect to verify their tax status may face unexpected tax issues. Special attention is needed for procedures following changes to registered addresses or cessation of activities.

Key pointsThe Vietnamese government has announced Decree 342/2026/NĐ-CP, which establishes new regulations for the commercial activities of foreign investors and foreign-capitalized economic organizations. This decree outlines specific conditions for foreign investors to engage in buying and selling goods in Vietnam, emphasizing the need for environmentally sustainable business models and stronger connections with international supply chains.
Business impactWhile this new regulation lowers barriers for foreign companies entering the Vietnamese market, it also requires compliance with environmental standards, necessitating Japanese companies to enhance their environmental measures and prepare to obtain the necessary permits.

Key pointsThe Vietnamese tax authority warns that tax obligations do not cease even if a business is actually suspended. Taxpayers must follow proper procedures when temporarily halting or closing their business. It is particularly important to ensure that tax number information is accurate and to check for any unpaid taxes or penalties. There may still be obligations for tax declarations and invoice issuance during the suspension period, so caution is required.
Business impactJapanese companies risk incurring unpaid taxes if they neglect tax procedures during business suspension in Vietnam. It is crucial for the finance department to thoroughly verify tax number management and declaration obligations and to carry out the appropriate procedures.

Key pointsSaigon Station has started selling tickets for the 2027 Tet Nguyen Dan, with approximately 300,000 tickets available. Sales began on August 30, and ticket sales are also ongoing after the summer peak.
Business impactTransportation arrangements during Tet are crucial, and Japanese companies need to plan employee travel well in advance.

Key pointsAgriS has nearly severed economic transactions with Toàn Hải Vân, the major shareholder of TTC Phu Quoc, and is withdrawing its funds. TTC Phu Quoc is planning new fundraising efforts, but AgriS will not participate and is focusing on recovering funds from past transactions. This indicates a shift in AgriS's investment strategy, drawing attention to future developments.
Business impactJapanese companies should closely monitor AgriS's movements and reassess the risks associated with their investments. Companies engaged with AgriS may need to be cautious as this could impact future fundraising and project progress.

Key pointsBac Ninh Province is enhancing connections in supply chain, logistics, import-export, and e-commerce by leveraging its geographical advantages and industrial capabilities. This aims to boost local companies' competitiveness and facilitate entry into global value chains. Additionally, it is expanding cooperation through trade promotion activities.
Business impactFor Japanese companies, the strengthening of the supply chain in Bac Ninh Province may lead to reduced logistics costs and the creation of new business opportunities. Particularly, the manufacturing and trade sectors need to closely monitor regional trends.

Key pointsVietnam Railways will start selling approximately 300,000 tickets from September 5, 2026, for Tet (Lunar New Year) 2027. A total of 57 trains will operate, with over 800 carriages prepared. Discounts for passengers will also be implemented, aiming to facilitate smoother travel during the Tet period.
Business impactDue to expected congestion in transportation during Tet, Japanese companies need to plan employee vacation schedules early. Particularly, adjustments in logistics and business trip schedules are crucial.

Key pointsThe Vietnamese railway industry has officially begun selling over 300,000 tickets across all sales channels for Tet Nguyen Dan (Lunar New Year) 2027, starting from 8 AM on September 5, 2026, in response to rising demand.
Business impactWith increased travel demand during Tet, Japanese companies need to adjust employee travel plans and logistics. It is particularly important for businesses affected by Tet to implement measures early.