Concerns Over Limited Corporate Tax Benefits for SMEs

Key pointsConcerns have been raised by lawmakers in the Vietnamese National Assembly regarding the limitation of corporate tax benefits for small and medium-sized enterprises (SMEs) to three years. It has been pointed out that many companies may see the benefit period end before they can generate profits, questioning the effectiveness of support measures for SMEs.
Business impactFor Japanese companies, a decrease in the effectiveness of tax incentives could impact procurement strategies, as they build supply chains through relationships with SMEs. It is important to assess the growth environment for SMEs.

Key pointsThe Dutch development finance institution FMO has provided an unsecured loan of $60 million (approximately 9.3 billion yen) to Nam A Bank. This loan is set for a five-year term and will be allocated to green projects and funding for small and medium-sized enterprises (SMEs). It is expected to enhance the sustainability of the Vietnamese economy and improve the investment environment.
Business impactFor Japanese companies, Nam A Bank's fundraising contributes to strengthening local green finance capabilities, making it a useful option for advancing decarbonization across the entire supply chain.

Key pointsVietnam's Vikki Digital Bank introduced a multifunctional student ID card and a 'Digital Citizen Station' at Victoria Hoa Binh University on September 25, 2026. This card offers a credit limit of up to 40 million VND (approximately 242,400 yen), expanding digital financial services for students. Amid the government's cashless policy and the rise of digital banking, financial inclusion for the youth is accelerating.
Business impactFor Japanese companies, the development of digital financial infrastructure for the youth will broaden options for local employee salary payments and benefits services. Particularly, the proliferation of digital payments will become a crucial factor in future business operations.

Key pointsHo Chi Minh City has announced a draft policy to subsidize 50% of the interest on loans for parking construction and operation businesses. This policy aims to address the shortage of parking spaces in urban areas and is seen as a significant step in Vietnam's infrastructure development. The high subsidy rate may create new opportunities for private investment. Specific eligibility conditions have not yet been disclosed, but future developments are being closely monitored.
Business impactIf this policy is implemented, it will benefit real estate and construction-related companies and impact the operations of Japanese companies. In particular, the development of parking facilities is expected to enhance commuting and logistics efficiency, leading to improvements in business operations.

Key pointsIn the first week following the upgrade of Vietnam's economy, foreign investors sold a net $100 million. This movement is primarily attributed to profit-taking by active funds, and there is a strong belief that it does not reflect concerns about the fundamentals of the Vietnamese economy. Market participants point out that the inflow of passive funds in the future will be noteworthy.
Business impactThis selling may particularly impact large-cap stocks and the financial sector, which have a high foreign ownership ratio. Japanese companies need to reassess their medium to long-term investment strategies, unaffected by short-term market trends.

Key pointsThe case of Roland Garros Airport in Réunion Island, which utilizes natural ventilation to reduce CO2 emissions, is gaining attention. Vietnam, with its similar tropical monsoon climate, may consider this design philosophy in its airport expansion plans. Energy-efficient infrastructure will become a crucial factor in future investment evaluations in Vietnam.
Business impactFor Japanese companies, the adoption of environmentally friendly designs presents new business opportunities. Particularly, construction and materials-related firms may secure a competitive advantage by incorporating such design philosophies.

Key pointsFollowing FTSE's upgrade of Vietnam's market to emerging status, the VN-Index fell by 1.68% in the first trading week, with foreign investors selling over 276.5 billion VND (approximately 16.75 million USD). This movement highlights the gap between market expectations and reality, leading to a cautious stance among investors. The total trading value across the three exchanges decreased by 21% compared to the previous week. The impact of upcoming macroeconomic indicators for the third quarter on the market is being closely watched.
Business impactFor Japanese companies, short-term fluctuations in the stock market may have limited direct impact, but they could influence funding costs and the investment mindset of local partners. It is essential to avoid overreacting to short-term price movements and to make decisions with a medium to long-term perspective.

Key pointsChanges in US-China economic relations may present new investment opportunities for Vietnam. The low attendance of Chinese CEOs at a White House dinner suggests a structural shift in the economic relationship between the two countries, potentially accelerating the relocation of production bases to Vietnam.
Business impactJapanese companies are encouraged to leverage the diversification of production bases amid US-China tensions to expand business opportunities in Vietnam, particularly in industrial parks and logistics-related sectors.

Key pointsVingroup signed a memorandum of cooperation with the National Academy of Science and Technology in Hanoi on September 25, 2026. This collaboration includes research in areas such as renewable energy, cybersecurity, new materials, and space technology. Vingroup also announced plans to train between 10,000 and 20,000 AI specialists.
Business impactThis partnership will enhance Vingroup's technological capabilities and promote Vietnam's technological independence. Japanese companies may find new business opportunities by seeking partnerships in these fields.

Key pointsAtkins Realis from Canada has proposed comprehensive cooperation with Vietnam in the field of nuclear power, including technology transfer, localization, and human resource development. Vietnamese President Vo Lam is seeking a long-term partnership for the entire nuclear program, prioritizing safety. The selection of partners will be based on technology maturity, economic efficiency, and financial capability.
Business impactFor Japanese companies, entering the nuclear power sector in Vietnam presents new business opportunities, particularly through involvement in technology transfer and human resource development, which may yield long-term benefits.

Key pointsInternational gold prices have sharply declined amid expectations of prolonged high interest rates in the US. This has led to a shift to net selling in the world's largest gold ETF, SPDR Gold Trust, resulting in continued capital outflows. This trend may impact the Vietnamese economy and stock market, particularly concerning investor sentiment and exchange rates. The drop in gold prices could encourage a shift of funds towards risk assets.
Business impactFor Japanese companies, US interest rate trends will affect supply chain costs and the valuation of local currency-denominated assets. A depreciation of the dong could positively impact yen-converted earnings from local production bases, but it may also lead to increased costs for imported raw materials, necessitating caution.

Key pointsOn September 23, 2026, Vietnam's Ministry of Science and Technology granted permission to Amazon Kuiper, a US company, to establish a satellite communication network. This network is intended for testing devices and quality assessment within Vietnam. Amazon Kuiper aims to provide high-speed internet connectivity using over 3,200 low Earth orbit satellites.
Business impactThis authorization will promote the development of Vietnam's communication infrastructure and offer new business opportunities for Japanese companies. In particular, companies in the telecommunications sector will need to pay attention to future market trends and consider strategic partnerships.