CEO of Hoa Phat Agriculture Discusses Future of Vietnam's Pork Market

Key pointsThe CEO of Hoa Phat Agriculture provided insights on pork prices for late 2026 and 2027, mentioning the possibility of Vietnam repeating a supply surplus scenario similar to China. He also discussed reasons for not rapidly increasing pig farming numbers and changes in the company's dividend policy. This information was presented during a meeting with investors.
Business impactJapanese companies need to closely monitor trends in Vietnam's pork market. Particularly, due to potential price fluctuations, a review of related supply chains and sales strategies may be necessary.

Key pointsCTCP Chung Goc Saigon - Hanoi (SHS) has officially launched the corporate bond 'SH Bond', featuring fixed yields and diverse terms ranging from 1 to 12 months. This new product provides investors with additional options and is positioned as part of a one-stop shop for asset management. SH Bond plays a crucial role in helping investors allocate funds efficiently, especially during periods of significant market volatility, with yields unaffected by market fluctuations and fixed at the time of purchase for the selected term.
Business impactJapanese companies should monitor this development and assess its impact on related transactions, contracts, and local operations.

Key pointsThe CEO of Dragon Capital stated that high interest rates are affecting the overall flow of funds, putting pressure on real estate liquidity, and significantly differentiating corporate profits. Due to good management of inflation and exchange rates, the current interest rate levels are approaching a balance point.
Business impactHigh interest rates may increase financing costs for Japanese companies, necessitating a review of investment strategies, particularly in real estate.

Key pointsThe Mayor of Hanoi has instructed to enhance audits for companies involved in the gold and silver business. The tax authorities aim to conduct audits on at least one company to uncover accounting and tax violations, which is expected to improve transparency in the gold and silver market.
Business impactJapanese companies operating in Hanoi will need to ensure compliance with tax and accounting regulations. The strengthening of audits necessitates the establishment of appropriate management systems.

Key pointsThe Vietnam International Financial Center (VIFC), established in Ho Chi Minh City, aims to meet a funding demand of $1.5 to $16 billion over the next decade. By implementing a flexible legal framework based on international standards and a 0% tax rate until 2030, it seeks to rank within the top 75 on the global financial map by 2035, which is expected to attract foreign investment.
Business impactJapanese companies should pay attention to the establishment of VIFC, as it will increase funding and investment opportunities, particularly in the financial services and investment sectors.

Key pointsThe Vietnam Investment Development Bank (BIDV) will implement a preferential loan program for businesses, offering up to 50 trillion dong from August 2026 to December 2028. This program targets especially small and medium-sized enterprises and companies in growth sectors, with interest rates set at least 1% lower than the market average. BIDV is enhancing financial support in line with government guidance to promote economic growth.
Business impactJapanese companies can reduce financing costs and gain opportunities for business expansion by utilizing this loan program. The preferential terms are particularly attractive for companies engaged in technological innovation and environmentally friendly projects.

Key pointsVietnam's comprehensive defense industry company, Song Tu, has commenced the construction of a new multi-purpose anti-submarine escort ship. This vessel is designed and built domestically, equipped with modern weapon systems. This project marks a significant event in the development of Vietnam's defense industry and is being carried out under the strict guidance of the Ministry of Defense.
Business impactJapanese companies engaged in defense-related businesses should closely monitor the growth of Vietnam's defense industry and explore collaboration opportunities, particularly in technology provision and joint development.

Key pointsThe State Bank of Vietnam (NHNN) has instructed commercial banks to reduce lending rates for small and medium-sized enterprises (SMEs) by at least 1% effective August 7, 2026. This measure aims to promote economic growth and support financing for SMEs.
Business impactJapanese companies can take advantage of the reduced financing costs to reassess their investment plans. In particular, companies dealing with SMEs are expected to enhance their competitiveness by utilizing this interest rate reduction.

Key pointsThe Vietnamese Ministry of Finance has proposed adding a special mechanism for maritime city development projects. This mechanism will initially apply to Da Nang City and aims to attract strategic investors for projects exceeding 100 trillion dong in capital. Investors will be allowed to transfer up to 50% of the project.
Business impactJapanese companies should closely monitor this development and assess its impact on related transactions, contracts, and local operations.

Key pointsHo Chi Minh City has reclaimed land for a $1.5 billion project that was initiated in 2016 but had seen no progress for 11 years, effectively rendering it a 'pipe dream'.
Business impactThis land recovery may impact the future investment environment, particularly prompting Japanese companies to closely monitor the project's progress and reassess their investment decisions.

Key pointsAEON has decided to withdraw from the Thai market by transferring all shares to Central Food Retail due to long-term losses. AEON Thailand operated around 30 MaxValu stores but will now concentrate 60% of its capital on the Vietnamese market. AEON positions Vietnam as a key growth market in its mid-term plan from 2026 to 2030.
Business impactFor Japanese companies, AEON's exit highlights the growth potential of the Vietnamese market and serves as an important indicator when considering future investment opportunities. Particularly, as competition intensifies in the retail sector, a shift towards the Vietnamese market is necessary.

Key pointsVietnam's Ministry of Construction has instructed the urgent development of electric charging infrastructure at highway rest areas nationwide. This directive is based on the government's energy conservation enhancement directive issued on March 19, 2026. Currently, charging systems are partially operational at 4 out of 21 rest areas, with 8 under construction, while the remaining 9 have not been installed. The development of charging infrastructure is crucial for promoting the adoption of electric vehicles.
Business impactJapanese companies should monitor this trend and assess its impact on relevant transactions, contracts, and local operations.