Vietnam Central Bank Raises Dong Exchange Rate to Record High

Key pointsThe State Bank of Vietnam has raised the USD/VND exchange rate to a record high of 25,617 dong. This decision reflects market tensions ahead of the Federal Reserve's policy meeting. The increase in the exchange rate may impact import costs and companies with foreign currency-denominated debt.
Business impactJapanese companies need to strengthen their foreign exchange risk management as currency fluctuations directly affect costs and profits. In particular, import-dependent companies are required to reassess their strategies in preparation for rising costs.

Key pointsThe likelihood of an interest rate hike by the FRB is increasing, leading to a sharp decline in gold prices. The market estimates a nearly 90% chance of the FRB raising rates for the first time in over three years. Rising interest rates may diminish the appeal of gold and also affect the USD/VND exchange rate. Particularly, if U.S. interest rates rise, it is expected to impact Vietnam's interest rates as well.
Business impactIf the FRB implements an interest rate hike, ripple effects are anticipated in Vietnam's financial markets. It is crucial for businesses to take measures against exchange rate risks and interest rate fluctuations, and the finance department should conduct simulations in preparation.

Key pointsHo Chi Minh City has announced a decision regarding the approval and coordination of positions within public agencies. This allows heads of each agency to have the authority to approve positions within their respective organizations. Additionally, new policies concerning housing supply are being considered, particularly the development of affordable rental housing. The city aims to collect and manage data on the housing market to formulate appropriate policies.
Business impactThis new framework for position approval may impact Japanese companies in terms of human resource and labor management. Companies that need to collaborate with public agencies will be required to understand the position approval process and respond appropriately.

Key pointsIn Vietnam's stock market, the VN-Index is stabilizing at a new price range with low trading volume, leading to a scarcity of short-term trading opportunities. Market participants are finding it difficult to motivate buyers and sellers to engage actively, with investors waiting for a clear trigger. The prolonged low trading volume may compel a reassessment of future investment strategies.
Business impactFor Japanese companies, the short-term stagnation in the stock market is considered to have minimal direct impact; however, trends in the manufacturing supply chain and FDI should be evaluated from a medium to long-term perspective, necessitating caution. Individual investors should be particularly careful in making investment decisions in a low liquidity environment.

Key pointsA cafe in Ho Chi Minh City has opened as a 'Signing Store' employing approximately 50% hearing-impaired staff. Customers can place orders using tablets and check their order status on digital screens. This model originated from a suggestion by staff in Malaysia and is now being implemented in many countries. Starbucks aims to create a workplace environment for the hearing-impaired.
Business impactThis initiative contributes to promoting employment for the hearing-impaired and strengthens corporate social responsibility. Japanese companies also need to reassess their hiring strategies to emphasize diversity.

Key pointsHo Chi Minh City proposes to expand the scope of the direct power sales mechanism to include customers from power plants using liquefied natural gas (LNG) and industrial zones. This proposal aims to broaden opportunities for companies to access clean energy. Particularly, as the use of renewable energy advances, companies may achieve cost reductions and sustainable energy supply through direct power sales.
Business impactThis new mechanism could contribute to energy cost reductions and the securing of sustainable energy for Japanese companies. Especially in manufacturing and export sectors, improving energy efficiency is directly linked to competitiveness.

Key pointsReal estate development company CTCP Phat trien Bat dong san Phat Dat (PDR) is planning to transfer its remaining stake in the new urban development company CTCP Khu Do thi moi Dong Nai Riverside to a Burnaby-based real estate development firm. This transfer is positioned as part of PDR's financial strategy.
Business impactTransfers in the real estate industry can enhance capital liquidity and contribute to corporate growth strategies. Japanese companies need to monitor these trends and identify investment opportunities.

Key pointsTrung Nguyên Legend is strengthening its store expansion in the U.S. and China, enhancing the cultural status of Vietnamese coffee after 30 years of creation and service. By August 2026, it plans to open two Trung Nguyên E-Coffee stores in Texas, bringing the total number of stores in the U.S. to 20, while operating over 30 stores in China. This contributes to the spread of international coffee culture.
Business impactTrung Nguyên Legend's international expansion indicates business opportunities in Vietnam's coffee industry. Japanese companies should seize the chance to promote Vietnamese culture globally through coffee-related businesses and franchise development.

Key pointsAt construction sites in Ho Chi Minh City, a program has been implemented to promote labor safety by rewarding employees with rice. This project introduced a system where workers earn rewards for adhering to safety standards, achieving 266,164 hours of safe labor.
Business impactSuch labor safety initiatives contribute to companies' ESG (Environmental, Social, Governance) strategies and can enhance employee motivation through improved working conditions. Japanese companies may find it valuable to consider similar new approaches to raise awareness of labor safety.

Key pointsVietnam is a major producer of Robusta coffee, but its quality and value are not fully recognized in the Korean market. On August 28, 2026, Vietnamese coffee-related organizations signed a memorandum of cooperation with the Korean Coffee Association to strengthen the exchange of technology and human resources. By 2025, Korea is expected to import about 200,000 tons of coffee, with 18% or 36,000 tons supplied from Vietnam. Efforts are underway to improve the quality of Fine Robusta through farmer education and the establishment of quality standards, which is expected to enhance recognition in the Korean market.
Business impactJapanese companies need to leverage the growth of Vietnam's coffee market and consider entering the Korean market. It is particularly important to focus on improving the quality of Fine Robusta and developing products that meet the needs of Korean consumers.

Key pointsThe Ho Chi Minh City Tourism Bureau has requested online travel agencies (OTAs) to strictly verify and standardize information about accommodations. This request comes in response to an increase in illegal activities during the tourist season, requiring confirmation of star ratings, service quality, and actual operational status of accommodations. OTAs are responsible for listing only those accommodations that meet legal operating conditions.
Business impactThis initiative will ensure reliable information for Japanese companies utilizing accommodations through OTAs. Providing accurate information is crucial for enhancing customer satisfaction.

Key pointsThe People's Council of Dong Nai Province held a special meeting to address issues related to land bidding. Since the beginning of 2026, there have been no successful land bids in the province, making revenue enhancement urgent. The government plans to quickly utilize public investment funds to promote land release.
Business impactThe lack of progress in land bidding may impact investment plans of Japanese companies. Companies planning real estate development or infrastructure projects need to closely monitor land acquisition conditions and consider flexible strategies.