Vietnam to Launch Cryptocurrency Market This Year

Key pointsThe Vietnamese government plans to launch the cryptocurrency market within this year, emphasizing investor protection and anti-money laundering measures. There are indications that the design of the system will reference the experiences of European regulatory authorities, with expectations for improved transparency in the capital market. Specific details regarding the launch date and supervisory framework have not yet been disclosed.
Business impactThe institutionalization of the cryptocurrency market could expand options for Japanese companies operating in Vietnam regarding digital financial services. Particularly in the manufacturing sector, enhanced efficiency in digital payments is anticipated, providing reassurance for investors.

Key pointsThe U.S. Federal Reserve (FRB) has decided to raise interest rates for the first time in three years. This raises concerns about depreciation pressure on the Vietnamese dong and changes in capital flows. The movements of foreign investors are particularly noteworthy, as they may also affect the Vietnamese stock market.
Business impactFor Japanese companies, the rise in U.S. interest rates could impact export competitiveness, while also increasing the cost of importing raw materials. Managing foreign exchange risk will be a key challenge moving forward.

Key pointsForeign capital inflow continues in the Vietnamese stock market, driven by expectations of an FTSE market upgrade. This may serve as a buffer against external headwinds such as the U.S. Federal Reserve's interest rate hike forecasts. The sustainability of this capital inflow is a key focus for the future of the Vietnamese economy.
Business impactFor Japanese companies, the expansion of foreign capital inflow could lead to improvements in the funding environment and stock valuations. In particular, benefits are expected in the manufacturing supply chain due to domestic demand growth and the maturation of capital markets.

Key pointsConstruction of the 'Forest and Sea' expressway, connecting Khanh Hoa Province and Buon Ma Thuot City, is underway with over 600 workers operating around the clock. The expressway will span 117.5 km and aims to begin operations in 2027, with particular attention on the 1.7 km 'Phuong Hoang' tunnel, which is being constructed under complex geological conditions.
Business impactJapanese companies should keep an eye on this development and evaluate its implications for related transactions, contracts, and local operations.

Key pointsJICA and Vietnam National University of Agriculture announced the results of a project that produces power and organic fertilizer using technology to generate methane from solid waste. This project aims to develop a sustainable business model and will be implemented from 2022 to 2026. The project seeks to simultaneously address waste treatment and renewable energy generation.
Business impactJapanese companies need to focus on integrated models of waste treatment and energy production and consider sustainable business strategies. Particularly, as environmental regulations tighten, the adoption of such technologies can enhance competitiveness.

Key pointsThe prices of construction steel in Vietnam have increased by 8-10% year-on-year, while cement prices have risen by 3-4%. Despite strong construction demand, rising raw material costs are squeezing profit margins for contractors. The construction sector faces diverse demands, including housing and infrastructure development, but the cost increases make it difficult to pass on these costs to selling prices. As a result, the profitability of the construction industry becomes a crucial indicator for investment decisions.
Business impactFor Japanese companies, the rise in local procurement costs directly affects project profitability, making it essential to monitor price trends for steel and cement. Additionally, careful analysis is required for investment decisions related to construction-related stocks.

Key pointsVanEck Index, a U.S. asset management company, has selected SeABank (SSB) shares as a new component of the VNM ETF. This ETF has assets under management exceeding $500 million, providing foreign investors with a new investment channel into the Vietnamese stock market. SSB is the only newly added stock, which may increase overall attention on bank stocks.
Business impactFor Japanese companies, the increased presence of local banks in the capital market expands options for selecting financial partners. In particular, the inclusion of mid-sized banks like SSB in international indices is expected to enhance their credibility.

Key pointsAnalysis reveals that stock valuations in major sectors of the Vietnamese stock market are below historical averages. Sectors such as banking, real estate, consumer goods, and industry are particularly undervalued, presenting a buying opportunity for investors during this adjustment phase. The trend of the VN-Index is also under scrutiny.
Business impactFor Japanese companies, the undervalued phase of the stock market may impact fundraising costs and the stock valuation of partner companies. In particular, companies located in industrial parks on the outskirts of Hanoi need to closely monitor future market trends.

Key pointsA proposal has emerged in Venezuela to abolish its currency, the bolivar, and adopt the dollar as legal tender. This move represents a case of a country suffering from hyperinflation relinquishing its currency sovereignty, providing insights for Vietnam's monetary policy. The Vietnamese dong continues to decline, reaching historically low levels against the dollar.
Business impactJapanese companies entering Vietnam may find that the depreciation of the dong lowers local production costs, but it also leads to a reduction in profits and dividend remittances when converted to yen. Establishing a system to hedge against exchange rate risks becomes increasingly important.

Key pointsThe conflict between US Fed Chairman Powell and President Trump has reignited, increasing speculation about rate cuts. This situation is drawing attention to its potential effects on the Vietnamese economy and investment environment, particularly regarding foreign investor inflows into the VN-Index.
Business impactJapanese companies need to be cautious as US interest rate trends can affect currency costs and funding environments. A depreciation of the dong could benefit export-oriented companies, while increasing costs for those with local currency-denominated debts.

Key pointsThe Vietnamese stock market is anticipating an upgrade from FTSE scheduled for September 2026, which could facilitate an influx of investment capital. Changes in market structure are expected, particularly with increased interest from foreign investors. The FTSE upgrade represents a significant milestone for the Vietnamese economy.
Business impactJapanese companies should closely monitor market changes associated with the FTSE upgrade and consider revising their investment strategies. It is crucial to understand the trends of foreign investors to capitalize on opportunities for capital inflow.

Key pointsOn September 14, 2026, Kim Liên Market in Hanoi was closed due to fire safety issues. Merchants are anxious as no temporary market has been established and there is no clear timeline for reopening. Local authorities have been asked to resolve the issues within 135 days, but specific actions remain unclear.
Business impactThe closure of this market poses a significant problem for local merchants who lose their source of income. Japanese companies need to pay attention to changes in the local commercial environment and reassess supply chains and sales strategies that may be affected.