Vietnam's Banking Sector Seeks Balance in Funding and Interest Rates by Late 2026

Key pointsAs Vietnam's banking system approaches late 2026, it faces strategic challenges with credit growth significantly outpacing funding, leading to a high loan-to-deposit ratio (LDR). This situation intensifies competition for deposit acquisition. Banks need to balance the inflow and outflow of funds.
Business impactFor Japanese companies, there may be an increase in funding costs, necessitating close attention to interest rate trends, particularly in the financial sector. A review of funding management strategies will be required.

Key pointsHai Phong City achieved a GRDP growth rate of 11.81% and a total import-export value of 91.72 billion USD, making it one of the top five regions in the country for outstanding results in the implementation of FTAs by 2025. This led to recognition from the Prime Minister.
Business impactJapanese companies should consider investing and conducting business in Hai Phong City, as there are increased opportunities to leverage FTAs.

Key pointsVietnam imported approximately $800 million worth of rice over seven months in 2026, primarily to balance food processing and supply, indicating that domestic rice production is not meeting demand. Despite being one of the world's leading rice exporters, Vietnam finds itself in a situation where imports are necessary.
Business impactThis increase in imports may impact the food industry and distributors. In particular, Japanese companies dealing with rice will need to reassess their supply chains and strengthen cost management.

Key pointsSaigon-Hanoi Bank (SHB) announced plans to provide 45 trillion VND in preferential loans for small and medium-sized enterprises and individuals starting in early 2026, with interest rates reduced by up to 2% per year. This initiative aligns with government and central bank policies aimed at revitalizing economic production and business activities.
Business impactThis interest rate reduction may lead to lower financing costs for Japanese companies, potentially benefiting transactions with small and medium-sized enterprises. It is worth considering a review of funding plans.

Key pointsVietjet plans to open a route connecting Ho Chi Minh City and Western Sydney International Airport (WSI) starting January 10, 2027, initially operating two flights per week, increasing to three flights per week from March 2027. This new airport is set to function as Sydney's second aviation gateway and will operate 24 hours a day. Vietjet will be one of the first airlines to enter this airport, alongside Singapore Airlines and Air New Zealand.
Business impactThe launch of this new route provides Japanese companies with an opportunity to expand access to the Australian market. In particular, the increase in direct flights from Ho Chi Minh City is expected to enhance business efficiency and potentially boost trade and investment with Australia.

Key pointsIn Vietnam, significant projects such as Lô B - Ô Môn, Lạc Đà Vàng, Sư Tử Trắng 2B, Khánh Mỹ - Đầm Dơi, and Ca Voi Zan are accelerating. This is expected to create continuous employment opportunities from 2026 to 2030.
Business impactThese projects present new business opportunities for Japanese companies. In particular, construction and infrastructure-related firms can aim for growth by participating in these initiatives.

Key pointsNura's Chairman, Nguyen Huy Tuan, emphasized that Fujifilm has chosen Vietnam as its first market in Southeast Asia. Nura plans to launch health check-up models in 2024 and introduce AI-powered diagnostic equipment. Currently, they serve over 33,000 customers across three facilities and have detected more than 160 abnormalities. Mr. Nguyen stresses the importance of health check-ups based on his experience and aims to promote the habit of regular health checks.
Business impactJapanese companies should reference Nura's success to assess the demand for health management services in the Vietnamese market. In particular, the introduction of AI technology in medical services could present future business opportunities.

Key pointsThe real estate market in Ho Chi Minh City and its surroundings is showing new movements with the recovery of supply, infrastructure development, and the resolution of legal obstacles. Notably, Novaland has announced partnerships with about 50 sales agents nationwide to launch new products post-restructuring. The market is recovering from previous stagnation by addressing legal issues and funding challenges, with increased supply and consumers prioritizing legal transparency and construction progress. This enhances the competitiveness of high-quality projects in the market.
Business impactFor Japanese companies, the recovery of Ho Chi Minh City's real estate market signifies increased investment opportunities. It is important to consider investments in projects that meet the emphasized criteria of legal transparency and project progress.

Key pointsIn the first seven months of 2026, Vietnam's textile product exports reached $27 billion, marking a 2.7% increase compared to the same period last year. The textile industry is seeking new growth drivers and is adapting flexibly to market fluctuations. A restructuring of the industry is underway, with expectations for sustainable growth.
Business impactThe growth of the textile industry offers new business opportunities for Japanese companies. In particular, the manufacturing sector will need to reassess strategies to respond quickly to market changes and maintain competitiveness.

Key pointsT&T Group signed a memorandum of strategic partnership with Chinese fintech company Yusys Technologies on August 12. This partnership aims to enhance cooperation in financial technology, digital transformation, and financial services in the Vietnamese and Southeast Asian markets. The two companies plan to jointly establish a fintech company and create a comprehensive digital platform.
Business impactJapanese companies need to closely monitor the advancements in financial technology through the partnership between T&T Group and Yusys. As digitalization progresses, there is a demand for increased efficiency in financial services and the introduction of new business models, making it essential for relevant sectors to be aware of these trends.

Key pointsAccording to data from the second quarter of 2026, 1,067 companies were surveyed, showing an overall profit increase of 49.4% year-on-year. Notably, the non-financial sector recorded a 73% profit growth. Even excluding Vingroup-related companies, total profits increased by 34.6%, indicating a broad recovery, particularly driven by real estate and banking.
Business impactJapanese companies should closely monitor these trends and assess their impact on relevant transactions, contracts, and local operations.

Key pointsVietnam aims to achieve $100 billion in exports of agricultural, forestry, and fishery products, with the livestock sector expected to be a new growth engine. Johan van den Ban, CEO of De Heus, emphasizes the need for a shift from quantity to value.
Business impactJapanese companies should monitor this trend and assess its impact on related transactions, contracts, and local operations.