Vietnam to Transform FDI Acceptance Model

Key pointsEconomic experts indicate that Vietnam needs to shift from a traditional acceptance model of foreign direct investment (FDI) to one that focuses on absorbing technology and leading production capabilities. The new generation of FDI requires improvements in the environment and strategic capacity development. A policy announced in June 2026 emphasizes the quality of investments and aims to enhance the competitiveness of domestic companies, raising questions about Vietnam's ability to escape the middle-income trap.
Business impactJapanese companies must strengthen technology transfer and collaboration with local firms to adapt to the new policy that prioritizes the quality of FDI. Particularly, manufacturing and technology companies should reassess their strategies to meet local needs.

Key pointsOn August 21, 2026, the Young Entrepreneurs Association of Ho Chi Minh City held its first congress, marking an important milestone for the association with over 30 years of history. The event was attended by Mayor Nguyen Van Duc, a member of the Central Committee of the Party, who emphasized the importance of supporting young enterprises and co-creating policies.
Business impactSupporting the growth of young enterprises presents new partnership opportunities for Japanese companies, particularly in collaboration with startups.

Key pointsAs of August 15, 2026, Vietnam's national budget revenue has surpassed 1,900 trillion dong, reaching 76.2% of the budget plan. Expenditures are approaching 1,500 trillion dong, showing 47.4% progress. Notably, Ho Chi Minh City's tax revenue has reached 466 trillion dong, indicating advancements in digitalization.
Business impactThe status of national budget revenue and expenditures will impact corporate tax planning and financing strategies, prompting Japanese companies to consider this in their financial strategies.

Key pointsOn August 21, 2026, a press conference was held in Da Nang for the 'GBA Oktoberfest Vietnam 2026,' the largest German beer festival in Southeast Asia. Da Nang City announced its 'Green Tourism Accommodation Standards' as part of efforts to promote the tourism industry and aim for environmentally friendly tourist destinations. Additionally, an international trade, tourism, and investment fair will be held, with expectations for economic development in Da Nang.
Business impactThis event presents business opportunities in the tourism sector, offering Japanese companies a chance to explore new markets, particularly for those in the hospitality and food service industries.

Key pointsOn August 21, 2026, the Ho Chi Minh City Construction Department announced that the Lancaster Lincoln project, invested by Trung Thủy Group, has met the conditions to commence operations. The city aims to resolve numerous investment-related challenges and implement special mechanisms to advance unresolved projects by 2025.
Business impactThe commencement of this project marks a significant advancement for the real estate market in Ho Chi Minh City. Japanese companies need to closely monitor local real estate trends to identify future investment opportunities.

Key pointsThe Vietnamese railway industry has announced increased services on major routes in preparation for the National Day in 2026. From August 28 to September 2, operations will be strengthened on high-demand routes, and a new tourist train 'Ancient Capital Hue-Phong Nha' will be introduced. A total of 64,000 tickets have already been sold, ensuring a system is in place to meet the public's travel needs.
Business impactJapanese companies need to review employee travel plans during the National Day period. It is particularly recommended to purchase tickets early if travel or business trips are planned.

Key pointsOn August 21, 2026, the Da Nang Department of Culture, Sports and Tourism, in collaboration with the Swiss Embassy, announced the 'Da Nang Green Stay' standards at the Ariyana International Conference Center. This initiative aims to promote the development of environmentally friendly tourist destinations. Da Nang is strengthening its efforts to promote sustainable tourism and contribute to the growth of the tourism industry.
Business impactJapanese companies should pay attention to the introduction of environmental standards in Da Nang's tourism sector and consider building sustainable business models. In particular, there may be a demand for environmental considerations in tourism-related investments and service offerings.

Key pointsAt the seminar 'Dong Nai – Southern Industrial, Logistics, and Strategic Investment Center' held in Dong Nai Province, new developments regarding high-tech investment policies, infrastructure, finance, logistics, and human resources were discussed. KN Industrial City (KNIC) participated as a key partner and provided the venue for the program. The new high-tech policy will be implemented from July 1, 2026, focusing on enhancing project research and development capabilities and technical human resources. Dong Nai Province is increasing its attractiveness as a key hub for high-tech investment.
Business impactFor Japanese companies, the development of the high-tech investment environment in Dong Nai Province will be a crucial factor in future investment strategies. Companies considering investments in the high-tech sector need to assess the quality of local infrastructure and human resources to establish conditions that enable rapid project implementation.

Key pointsConstruction of the Dong Nai Province section of Ho Chi Minh City's Ring Road 3 is accelerating, aiming for completion by October 2026. The project management bureau is enhancing efforts to monitor progress and resolve issues.
Business impactThe completion of this road will contribute to the efficiency of logistics and transportation, positively impacting the business activities of Japanese companies. It will be particularly important infrastructure for the manufacturing and import-export sectors.

Key pointsThe plan for a new connection route to the TP.HCM - Trung Luong Expressway is being reevaluated. The Vietnam Road Administration has rejected the connection proposal, prompting investors to seek alternative connection methods. This project is expected to facilitate traffic flow and contribute to regional economic development.
Business impactJapanese companies need to monitor the progress of infrastructure development to optimize logistics and supply chains.

Key pointsThe Vietnam National Tourism Administration has announced a new policy aiming for 45 to 50 million tourists by 2030. This shift will move the tourism industry from merely increasing visitor numbers to promoting tourist spending. As the industry grows, there is a demand for high-quality service provision.
Business impactJapanese companies need to develop new services and products to enhance tourist spending. It is particularly important for businesses related to tourism to reassess their strategies according to customer needs.

Key pointsAt the international symposium on the innovation of Vietnam's development model held on August 20, 2026, Professor Go Tan Loi emphasized the necessity of technological innovation and digitalization to promote new growth in Vietnam. He stated that improving the quality of foreign direct investment (FDI) is crucial, particularly as a driving force for new growth. Strategic transformations are required for Vietnam to aim for high-income status by 2045.
Business impactJapanese companies should pay attention to the progress of digitalization in Vietnam and enhance their competitiveness through technological innovation. Specifically, the IT and R&D sectors should seek new investment opportunities.