EVN Eliminates 45 Trillion Dong Cumulative Loss in Under Two Years

Key pointsThe Vietnam Electricity Corporation (EVN) recorded a post-tax profit of 8.63 trillion dong in the first half of 2026, a 26% increase compared to the same period last year. This profit averages about 48 billion dong per day. EVN's achievement in eliminating a cumulative loss of 45 trillion dong in a short period is noteworthy.
Business impactJapanese companies can expect improved stability in electricity supply due to EVN's performance enhancement. In particular, a review of energy costs is necessary.

Key pointsDong Nai Province is implementing a special 500-day competition to establish its status as a centrally governed city and a key growth hub for the nation. Based on the Politburo's resolution for the province's development until 2035, it aims to maximize support from the central government and focus on regional infrastructure development, aspiring to serve as a 'magnet' for domestic investment.
Business impactThis initiative may present new investment opportunities for Japanese companies. Firms involved in infrastructure-related projects should be vigilant to capitalize on business opportunities arising from Dong Nai Province's growth.

Key pointsHo Chi Minh City is undergoing significant transportation infrastructure projects, notably the Ben Luc - Long Thanh Expressway, which spans 57.8 km and connects the city with Dong Nai Province, expected to greatly improve traffic flow. Additionally, the Bien Hoa - Vung Tau Expressway has opened, playing a crucial role in linking Ho Chi Minh City with Ba Ria - Vung Tau, significantly reducing travel time and contributing to lower logistics costs.
Business impactThese infrastructure developments may enhance logistics efficiency for Japanese companies, potentially aiding business expansion. Particularly, the manufacturing and logistics sectors could increase their competitiveness by utilizing these new transport routes.

Key pointsIn the first eight months of 2026, foreign direct investment (FDI) in Vietnam reached $40.63 billion, a 55.4% increase compared to the same period last year. Notably, LG Innotek has launched a $1 billion semiconductor manufacturing project in Hai Phong, and Samsung is planning an additional $1.5 billion investment. This enhances Vietnam's attractiveness as an international investment destination.
Business impactJapanese companies need to consider new investment strategies to maintain competitiveness in response to the increase in FDI. Particularly in manufacturing and distribution, there is a demand for restructuring supply chains.

Key pointsA truck ban has been implemented in Dong Nai Province, with exceptions being considered for company vehicles. Specifically, companies with headquarters or factories in the area may be allowed to operate during restricted hours with proper permits. While local traffic conditions are improving, there are impacts on corporate logistics.
Business impactFor Japanese companies, the efficiency of logistics is crucial, and they may be affected by the truck ban. In particular, procedures for obtaining permits and reviewing transportation schedules for raw materials and products will be necessary.

Key pointsVietnam and Russia have committed to removing barriers for businesses and enhancing financial cooperation. Vietnam's Minister of Finance, Ho Duc Phoc, met with Russia's Minister of Finance, Anton Siluanov, expressing intentions to strengthen economic cooperation between the two countries. Over the first eight months of 2026, Vietnam's economy has maintained a recovery trend, with FDI reaching $40.63 billion. Trade between the two countries has reached $3.24 billion, marking a 12% increase compared to the same period last year.
Business impactJapanese companies should monitor this development and assess its impact on relevant transactions, contracts, and local operations.

Key pointsThe People's Committee of Ho Chi Minh City has approved a change in land use for a housing project in Tan Phu District, adding 2,141m². This land will be converted from agricultural to urban residential use for the construction of commercial housing and transportation facilities. The land use period extends until December 2026, bringing the total project area to 70,113m².
Business impactJapanese companies should monitor this development and assess its implications for related transactions, contracts, and local operations.

Key pointsLee & Man Chemical has invested approximately $236 million to establish a chemical products factory in Ho Chi Minh City. This project is one of the large-scale FDI projects that received investment approval by the end of 2025.
Business impactThis move indicates an influx of foreign direct investment into the Vietnamese market, potentially introducing new competitors for Japanese companies.

Key pointsThe VN-Index, a key index of the Vietnamese stock market, has sharply declined, primarily due to the drop in major stocks VIC (Vingroup) and VHM (Vinhomes). Selling pressure has intensified compared to the morning session, with other stocks unable to provide support. This trend is likely to impact the overall market, particularly increasing caution in the real estate sector.
Business impactFor Japanese companies, the direct impact is considered limited; however, fluctuations in the real estate market may affect industrial park development and logistics costs, necessitating careful attention.

Key pointsHo Chi Minh City has approved an investment of approximately $980 million (about ¥1 trillion) for the Swift Logistics project by Singapore's Tokgistic. This project is set to operate for 50 years and will engage in logistics, postal services, and market research. TikTok plans to expand its service offerings in Ho Chi Minh City as an international financial center.
Business impactFor Japanese companies, TikTok's entry presents new business opportunities. Particularly in the logistics sector, there is a growing need to establish efficient supply chains amid increasing competition.

Key pointsCan Tho City has decided to recover approximately 3.4 hectares of land from Thuy Son - HG Company due to improper land use. The land was acquired by the company in 2011 for establishing a luxury wood factory, but progress has been insufficient.
Business impactThe recovery of land serves as a reminder for Japanese companies about the importance of proper land use and project progress management. Compliance with land use regulations is particularly emphasized.

Key pointsIn Vietnam, a recall has been announced for Chinese-made Cooluli refrigerators and Anthelios sunscreen. The U.S. Consumer Product Safety Commission (CPSC) is recalling 250,000 Cooluli refrigerators due to a fire hazard from a short circuit in the power switch, with 19 reports of smoke or fire incidents. Additionally, Anthelios sunscreen has been flagged for having actual SPF values lower than advertised, potentially impacting user health. These products were sold on Amazon and Cooluli's online store.
Business impactJapanese companies need to be cautious in handling recalled products. Particularly, businesses dealing with imports must quickly grasp recall information and implement notifications and responses to customers. Appropriate measures are necessary to ensure consumer safety.