Vietnam's Banking Sector Sees Bond Yields Reach 10.5%

Key pointsThe yield on bonds issued by Vietnam's banking sector has reached 10.5%, marking the highest level in recent years. This increase, particularly noted in the first-year rate of a 10-year bond issued by PVcomBank, indicates a shift in the funding environment for banks. The rise in rates may impact the overall cost of capital in Vietnam.
Business impactFor Japanese companies, the increase in local banks' funding costs could affect lending conditions and transaction interest rates. Companies managing supply chains will need to exercise caution in selecting funding sources.

Key pointsSiemens Mobility and VinSpeed announced contracts for two high-speed rail projects in Vietnam, including ten Velaro Novo trains capable of reaching speeds of 350 km/h. This positions Vietnam as a potential global leader in the introduction of new high-speed rail technology. The Velaro Novo is designed to be lightweight, energy-efficient, and enhance passenger comfort.
Business impactJapanese companies should closely monitor the advancements in Vietnam's railway infrastructure and explore opportunities to provide related technologies and services. In particular, companies supplying railway-related technologies should consider entering the Vietnamese market.

Key pointsStarbucks announced the transfer of over 1,100 stores in seven Asian markets to DFI Retail Group. This transaction is part of Jardine Matheson's business restructuring and is expected to be completed by the end of March 2027. DFI anticipates sales of approximately $600 to $650 million between April and December 2027, aiming for about $900 million in 2028. Additionally, DFI plans to expand its store presence in emerging markets, intending to increase the number of stores in Vietnam to 150.
Business impactJapanese companies should closely monitor this development and assess its implications for related transactions, contracts, and local operations.

Key pointsOn October 1, 2026, the first phase of Vietnam's high-speed rail project 'Ben Thanh – Can Gio' was completed with the construction of a 750-ton beam. This beam, measuring 32.6 meters in length and 12.6 meters in width, utilized a new technology that allowed for six continuous hours of concrete pouring for the first time. The project has a total investment of 102.43 trillion VND (approximately 4.6 billion yen) and aims to commence operations in 2028. The project is being executed by Coteccons, which plans to continue focusing on large-scale infrastructure projects.
Business impactThis project presents new business opportunities for Japanese companies. Construction and infrastructure-related firms need to closely monitor upcoming bidding opportunities.

Key pointsVietnamese billionaire Nguyen Dang Quang's Masan's MSR stock surged due to a partnership with a US company, reaching a market value of nearly 69 trillion VND. This stock price increase is attributed to a $2 billion contract from the US Department of Defense.
Business impactThis move indicates an influx of foreign investment in the Vietnamese market, and Japanese companies need to closely monitor new business opportunities.

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

Key pointsベトナムのダナンにある国際金融センター（VIFC-DN）が、Global Financial Centres Index（GFCI）に初めてランクインしました。2026年10月1日のデータによると、VIFC-DNは117の金融センター中71位に位置しています。このランキングは、ビジネス環境、人材、インフラ、金融発展度、国際的な評判の5つの基準に基づいています。VIFC-DNは、フィンテックやグリーンファイナンスなどの新しいモデルに基づいて発展を目指しています。
Business impactこのランクインは、ダナンの投資環境を向上させ、国際的な資金調達の機会を増加させる可能性があります。日本企業は、特にインフラやエネルギー分野での投資機会を見逃さないようにするべきです。

Key pointsHo Chi Minh City has risen 81 places in the Global City Index from 286th to 205th by 2026. However, indicators for quality of life, environment, and governance remain low, with serious issues in traffic congestion and environmental problems affecting daily life.
Business impactJapanese companies need to consider the impact of urban infrastructure and environmental issues on their business and aim for sustainable operations. In particular, reviewing logistics strategies is crucial as improvements in traffic infrastructure are required.

Key pointsOn September 28, 2026, Dong Nai Province approved land prices for eight plots related to the Aqua City project, with seven of these plots exempt from additional land use fees. This decision alleviates financing pressure and promotes project progress. Novaland plans to secure approximately 20 trillion VND and accelerate housing construction and handover while advancing legal procedures.
Business impactThe exemption from land use fees reduces financing burdens for Novaland and contributes to the early completion of the project. Japanese companies need to monitor changes in land use policies and reflect them in future investment plans.

Key pointsIn Ho Chi Minh City, flooding and land subsidence issues are worsening, with experts citing increased subsidence rates and rising sea levels as causes. Between 2015 and 2025, some urban areas have experienced subsidence of 2-5 cm per year, with certain regions reaching 7-8 cm. This has heightened the risk of flooding, particularly in planned development areas where flood mitigation measures are proving effective. Experts emphasize the importance of data-driven risk management.
Business impactJapanese companies need to consider the flooding risks in Ho Chi Minh City, as they may impact business operations and logistics. It is essential to review infrastructure planning and risk management strategies, enhance data collection and analysis, and implement appropriate measures.

Key pointsThe Vietnam Civil Aviation Authority is advancing plans to promote the use of Sustainable Aviation Fuel (SAF), aligning with the country's commitment to achieve net-zero greenhouse gas emissions by 2050. Specifically, it is developing the SAF supply chain and formulating usage plans suitable for domestic conditions, aiming to reduce the environmental impact of the aviation industry. Additionally, domestic energy companies are also conducting research towards SAF production.
Business impactJapanese companies need to pay attention to new regulations and market opportunities arising from the introduction of SAF. In particular, companies involved in the aviation industry are required to reassess their strategies to adapt to changes in environmental standards.

Key pointsThe bidding for the Vietnamese medical investment company in Haiphong is being reviewed due to an ongoing investigation involving the company. Haiphong's Friendship Hospital is providing documents related to past bids and cooperating with the investigation, revealing details about the bids the company was involved in.
Business impactThis situation highlights the necessity for Japanese companies to ensure compliance with regulations during the bidding process. Particularly in medical-related contracts, it is crucial to strengthen risk management due to the demand for transparency and ethical standards.

Key points39 solar and wind power projects, totaling approximately 2,200MW of generation capacity, have not engaged in pricing negotiations with Vietnam Electricity (EVN). These projects could not utilize the previous feed-in tariff (FIT) system and now require new pricing arrangements. According to the latest information, 7 projects have halted negotiations, while 32 projects have yet to initiate discussions, causing delays in project operations.
Business impactFor Japanese companies, pricing in renewable energy is a critical factor, necessitating an understanding of contracts with EVN. Delays in the progress of pricing negotiations may impact investment plans and operational costs, prompting relevant sectors to closely monitor the situation.