VN-Index Plummets, Approaching 1800 Points

Key pointsThe VN-Index has dropped by over 15 points, nearing the 1800-point mark. There is increasing uncertainty regarding the future of the Vietnamese economy, leading to a cautious investor sentiment. Notably, the trading behavior of foreign investors is impacting the market.
Business impactJapanese companies need to closely monitor stock market trends and consider how fluctuations in funding costs and local partners' stock prices may affect their operations. The financial sector, in particular, is sensitive to market changes, necessitating enhanced risk management.

Key pointsThe total assets managed by a Vietnamese asset management company have reached 846 trillion VND (approximately $32.5 billion). This expansion indicates the maturity of the Vietnamese economy and reflects the growing interest of domestic and international institutional investors.
Business impactFor Japanese companies, the growth of asset management firms means diversified funding options and increased opportunities for capital partnerships through the stock market. Access to funds via local management companies will become a crucial strategy.

Key pointsOn September 22, 2026, Vietstar Airlines received its first Airbus A330 at Phu Quoc International Airport. The introduction of this aircraft aims to expand international routes and is seen as a significant event symbolizing the growth of Vietnam's tourism industry. Future development of long-haul routes is anticipated.
Business impactFor Japanese companies, the expansion of tourism infrastructure on Phu Quoc Island presents new business opportunities. In particular, there may be an increase in investment opportunities in aviation-related services and the development of tourism facilities.

Key pointsA new industrial park, 'Que Vo III Industrial Park - Phase 2', covering 208.54 hectares, has been developed in Bac Ninh Province with a total investment of approximately 2.779 trillion VND (about 168.4 million USD). This industrial park is positioned as part of the growth triangle connecting Hanoi, Hai Phong, and Quang Ninh.
Business impactThe development of the new industrial park may provide Japanese companies with opportunities for supply chain efficiency and new business prospects. Manufacturing firms, in particular, are expected to optimize procurement and logistics in the vicinity.

Key pointsAs of the end of August 2026, the credit balance in Ho Chi Minh City and Dong Nai Province reached 6,390 trillion VND, accounting for approximately 30.4% of the total. This increase indicates a rising willingness among local residents to save, with banks directing these funds towards the production sector, particularly in manufacturing.
Business impactFor Japanese companies, the focus of bank lending on production expands funding options. Companies involved in manufacturing should leverage the increased availability of funds to explore business expansion opportunities.

Key pointsAn electronics company known for its famous slogan 'Wherever there is electricity, there is electric light' has seen its net profit decrease by approximately 60% after audits in 2025 due to recent management changes. This decline is particularly influenced by a subsidiary's unrecognized tax provisions for investments, leading to additional tax expenses. The company's stock will be under management starting April 2026, having fallen to one-fifth of its value over the past decade.
Business impactThis case highlights the importance of investment decisions and transparency in financial reporting, indicating that Japanese companies need to reassess investment risks in the Vietnamese market and implement appropriate risk management strategies.

Key pointsBy 2036, it is projected that approximately 20% of Vietnam's population will be aged 60 and over, which is expected to have long-term impacts on the insurance and financial markets. With structural changes in the economy, it is necessary to consider aging risks in investment decisions. The insurance industry, in particular, should expedite the development of products and services for the elderly.
Business impactJapanese companies need to reassess their product offerings and marketing strategies in preparation for the increasing demand for elderly services in the Vietnamese market.

Key pointsVingroup plans to hold a meeting on October 16, 2026, to increase the ratio of domestic procurement. This is a significant move directly linked to strengthening Vietnam's supporting industries and its localization strategy, with a focus on discovering domestic suppliers and increasing the localization rate of components. Specific localization rate targets have not yet been disclosed.
Business impactThis initiative may present business opportunities for Japanese companies entering the Vietnamese market. In particular, Japanese suppliers aiming to collaborate with Vingroup are expected to contribute to strengthening the domestic supply chain.

Key pointsWith the Chinese real estate market stagnating for an extended period, state funds are reassessing their capital allocations from China and showing interest in investing in Vietnam's economy. As capital continues to concentrate in the US market, Vietnam is emerging as an alternative within Southeast Asia. This positioning of Vietnam for investment is becoming a significant factor.
Business impactFor Japanese companies, reassessing reliance on China may facilitate the restructuring of supply chains. Companies with manufacturing bases in Vietnam should view this capital shift as a business opportunity and reconsider their strategies.

Key pointsVingroup and VinFast will hold a meeting on October 16 to increase domestic suppliers and improve product localization rates. Participating companies will have the opportunity to join Vingroup's global supply chain. The meeting will explore cooperation in manufacturing, machinery, and software, aiming to build a supply network for advanced technology industries. VinFast is seeking partners to enhance localization rates in domestic automobile and electric bike manufacturing.
Business impactThis meeting offers Japanese companies opportunities for manufacturing expansion and localization in the Vietnamese market. In particular, companies with automotive parts and related technologies can discover new business opportunities through collaboration with Vingroup.

Key pointsVietnam's stock market is experiencing heightened expectations following an upgrade by FTSE, with attention now focused on the VN-Index's future trends. After a correction of about 5% last week, the VN-Index has recovered to 1,815.66 points. Future movements are expected to be significantly influenced by domestic capital inflows and corporate profit forecasts, with inflation, interest rates, and exchange rate fluctuations being key factors.
Business impactJapanese companies need to closely monitor the VN-Index, particularly being sensitive to movements in the domestic market regarding fundraising and investment strategies. An improvement in corporate profit forecasts could lead to increased investment opportunities.

Key pointsFamilyMart has simultaneously opened 7 stores in Hanoi, providing a new convenient hub. The opening event featured a music stage and tasting sessions, attracting many visitors. FamilyMart plans to establish 20 stores in Hanoi by 2026 and expand by an additional 300 stores over the next five years.
Business impactThis expansion will enhance competitiveness in the Hanoi market and suggests new business model possibilities within Japan's retail industry. There is a need for rapid responses, especially as services focusing on urban convenience are increasingly demanded.