Yen Depreciation Affects Vietnam's Economy and Dong Exchange Rate

Key pointsThe U.S. Treasury Secretary's denial of further intervention in the yen's depreciation may lead to a continued decline in the yen, impacting Asian currencies. The Vietnamese dong is currently at a historic low against the dollar, drawing attention from export companies and foreign investors.
Business impactAs the yen depreciates, remittance costs from Japanese headquarters to their subsidiaries in Vietnam may rise, affecting local investment decisions. While this trend may benefit export-related companies, it will increase cost pressures on industries with high import dependence.

Key pointsBond yields in G7 countries have surged, leading to an expected increase in interest payments by billions of dollars. This situation is driven by escalating tensions between the U.S. and Iran, raising concerns about the global cost of capital affecting Vietnam's economy. There is a heightened risk of capital outflows from foreign investors.
Business impactFor Japanese companies, the global rise in interest rates may impact borrowing costs for local subsidiaries and the entire supply chain. Companies that rely on dollar-denominated financing will face a dual risk management challenge involving both currency and interest rates.

Key pointsAnalysts indicate that speculation regarding a Fed rate cut could lead to significant fluctuations in gold prices. The U.S. public debt issue is seen as a factor driving gold price increases, which may also affect the Vietnamese economy and stock investments. The price of gold could vary by several dozen dollars within a week.
Business impactFor Japanese companies, the Fed's monetary policy can impact exchange rates and supply chain costs, making it crucial for sectors involved in manufacturing and import/export to remain vigilant. Fluctuations in gold prices may influence investment decisions and funding strategies.

Key pointsShark Le Phu An's company has commenced construction on three projects totaling approximately 11 trillion VND at the South Tan Binh Industrial Park in Da Nang. This will establish a 346-hectare industrial park, with the first factory expected to be operational by 2027. Da Nang City aims to support the project's progress and create local employment opportunities.
Business impactJapanese companies should monitor this development and assess its implications for related transactions, contracts, and local operations.

Key pointsViettel Global has acquired frequency usage rights to provide telecommunications services in the Dominican Republic, marking its entry into the 11th country. The company aims to build advanced technological infrastructure in this new market to meet local digital service demands.
Business impactJapanese companies should monitor this development and assess its impact on related transactions, contracts, and local operations.

Key pointsStatements from U.S. Federal Reserve officials indicating prolonged inflation and the possibility of resuming interest rate hikes may affect capital inflows into Vietnam's economy and stock market. The VN-Index is expected to react sensitively to foreign investor trends.
Business impactFor Japanese companies, U.S. interest rate trends directly impact the cost structure of supply chains, particularly for export-oriented firms that need to consider exchange rate risks.

Key pointsS&P DJI, a major U.S. rating agency, has highly evaluated the progress of reforms in Vietnam's securities market, with attention on movements towards FTSE upgrade. S&P DJI has requested the Vietnam State Securities Commission to continue providing data on the implementation status of these reforms, which is seen as an important collaboration to enhance market evaluation accuracy.
Business impactFor Japanese companies, the improvement in securities market transparency could lead to a better fundraising environment, particularly benefiting those considering public listings or bond issuances.

Key pointsDuring the week of August 24 to 28, 2026, the VN-Index rose by 3.6% to reach 1,832.12 points. The market showed positive breadth, liquidity improved, and trading volume increased by 27.4%. Foreign investment turned net buyers again, strengthening confidence in the economic outlook. Short-term movements are expected to target 1,850-1,900 points.
Business impactFor Japanese companies, the rise in the VN-Index suggests expanded investment opportunities. Particularly, with increased foreign inflows, there is a need to reassess entry into the capital market and investment strategies.

Key pointsThe Vietnamese Ministry of Finance announced that domestic cryptocurrency transactions could reach approximately $8.1 billion, making them subject to taxation. This figure indicates the scale of taxable transactions rather than actual tax revenue. Future legal developments are expected to impact the Vietnamese economy and investment environment.
Business impactFor Japanese companies expanding digital finance operations in Vietnam, the clarification of tax rules will enhance legal predictability, making it a crucial factor in investment decisions.

Key pointsOn the Ho Chi Minh Stock Exchange (HOSE), the stock price of SSB (a SHB Finance-related bank) surged to its price limit, leading to an influx of funds into the entire banking sector. This movement reflects the liquidity of the Vietnamese economy and indicates a growing interest from investors in the banking sector. In afternoon trading, the trading volume increased by 79% compared to the morning.
Business impactFor Japanese companies, the activity in banking stocks serves as an important indicator for assessing funding costs and the financial status of business partners. It is essential to monitor whether the circulation of funds into banking stocks continues.

Key pointsThe Thu Thiem-Long Thanh railway in Ho Chi Minh City is planned to be approximately 46.5 km long with 18 stations. The railway will operate at a maximum speed of 120 km/h and has the capacity to transport about 47,000 passengers per hour. The project is expected to adopt automated driving technology and serve as a crucial transport route connecting downtown Ho Chi Minh City and Long Thanh International Airport, with completion aimed for 2026 and a total investment of approximately 134 trillion VND.
Business impactThe opening of this railway will significantly improve transportation infrastructure in Ho Chi Minh City, positively impacting logistics and employee commuting for Japanese companies. Improved access to the airport may also expand business opportunities.

Japanese business summary. Read the original source for the source language.

Key pointsQualcommは、ベトナムをグローバルなAI研究開発の第3の中心にすることを目指しています。
Business impactこの動向は、ベトナムの技術産業の成長を示しており、日本企業にとっても新たなビジネスチャンスを提供します。