Hanoi Accelerates Infrastructure Development to Alleviate Urban Bottlenecks

Key pointsHanoi is accelerating the development of transportation infrastructure in celebration of the 72nd anniversary of its liberation. Notably, construction on Ring Road 2.5 is progressing, aimed at improving traffic flow and expanding urban development space. Citizens are hopeful for the completion of the new road, anticipating an improvement in quality of life.
Business impactJapanese companies are expected to benefit from enhanced logistics and commuting efficiency due to the progress in infrastructure development. Improved transportation infrastructure will be a crucial factor for both manufacturing and service industries.

Key pointsThe Land Registration Office of Ho Chi Minh City has partnered with Military Commercial Joint Stock Bank (MBBank) to implement electronic notarization and online applications for secured registrations. This system allows customers to complete procedures from home and receive results the next day. During a trial period of about two months, MBBank successfully processed nearly 400 online applications across 30 land registration offices. There are plans to expand this service to other banks in the future. The electronic notarization aims to enhance customer convenience, reduce processing time, and optimize costs.
Business impactThis new electronic notarization system is significant for Japanese companies, especially those involved in real estate transactions, as it enables faster procedures and cost reductions, thereby improving operational efficiency. It is worth monitoring future developments and considering a review of related business processes.

Key pointsThe Gen Z generation in Vietnam plays a significant role in the financial market, with changing usage patterns for consumer loans. Recent surveys indicate that Gen Z is increasingly utilizing credit and opting for installment payments at the time of purchase. As a result, financial institutions need to offer new services, particularly emphasizing collaboration with digital platforms.
Business impactJapanese companies should understand the consumption behaviors of Gen Z and advance the development of financial products and services tailored to this target market.

Key pointsDanish jewelry brand Pandora has transitioned production from Thailand to Vietnam, establishing a new factory in Ho Chi Minh City. This factory aims to utilize skilled Vietnamese artisans and adopt sustainable production methods. Pandora anticipates a 50% increase in production capacity in Vietnam, planning to produce 60 million pieces of jewelry annually. The factory will operate on 100% renewable energy and manufacture products using recycled materials.
Business impactFor Japanese companies, the increase in manufacturing bases in Vietnam presents opportunities for cost reduction and supply chain diversification. In particular, jewelry and fashion-related businesses can expect improvements in quality and production efficiency by leveraging local skilled labor.

Key pointsIn Vietnam, deposit rates have reached up to 9%, offering higher rates than regular savings accounts. Notably, VPBank has set a rate of 9%, while Techcombank offers 8.8%. Meanwhile, lending rates have also increased, averaging over 10%. This rise may lead to higher financing costs, impacting business operations.
Business impactJapanese companies need to reassess their financing strategies. With rising interest rates increasing borrowing costs, it is essential to reevaluate financial planning and seek efficient capital management.

Key pointsUS Trade Representative Jamison Greer stated that negotiations for a trade agreement with Vietnam have made significant progress and are very close to a final outcome. On September 21, he met with President To Lam in New York, expressing intentions to strengthen economic, trade, and investment relations between the two countries. If the agreement is concluded, it is expected to expand cooperation opportunities between the two nations.
Business impactThis agreement could present new business opportunities for Japanese companies, particularly in the trade sector, which will need to pay attention to future developments.

Key pointsAs of mid-September 2026, there were 4,685 registered stalled projects nationwide, with 3,407 (72.7%) resolved. In Ho Chi Minh City, 650 projects have overcome legal obstacles and are showing progress. This is expected to positively impact the city's real estate market, with 37 real estate projects meeting funding conditions and an anticipated supply of 27,374 housing units. This is expected to facilitate resource mobilization towards achieving GDP growth targets.
Business impactFor Japanese companies, the resolution of projects in Ho Chi Minh City signifies revitalization of the real estate market, leading to increased investment opportunities. Particularly, real estate-related sectors need to closely monitor future market trends and develop appropriate strategies.

Key pointsVingroup will hold a meeting on October 16 in Hanoi to seek domestic partners and increase the local production ratio. In particular, VinFast needs to expand its network of domestic suppliers for automobile and motorcycle production.
Business impactJapanese companies should explore manufacturing and parts supply opportunities through collaboration with Vingroup, particularly focusing on meeting quality standards.

Key pointsVietnam's economic relationship with the United States is expanding from traditional trade to areas such as high technology, digital economy, semiconductors, and artificial intelligence. In the first seven months of 2026, exports from the U.S. to Vietnam reached approximately $10.8 billion, while imports from Vietnam to the U.S. totaled about $149.6 billion, indicating continued growth in trade between the two countries. Due to changes in U.S. trade policy, Vietnamese companies need to adapt quickly and enhance their value-added offerings, especially as demand for Vietnamese products in the U.S. market is increasing.
Business impactJapanese companies need to enhance their competitiveness in the Vietnamese market to strengthen trade relations with the U.S. This includes reinforcing collaboration with U.S. companies to facilitate technology transfer and improve production capacity.

Key pointsThe Ministry of Science and Technology of Vietnam has sent a document to the Ministry of Industry and Trade requesting that EVN (Vietnam Electricity) standardize electricity rates for data centers. Electricity costs account for over 50% of the operational expenses of data centers, and in Ho Chi Minh City, businesses are burdened by commercial electricity rates. The Ministry is calling for the application of production electricity rates nationwide to ensure stable power supply, which is expected to stabilize data center operations and contribute to economic development.
Business impactJapanese companies need to be cautious of fluctuations in electricity rates as the operational costs of data centers rise. In particular, businesses based in Ho Chi Minh City must implement measures to ensure the stability of their power supply.

Key pointsVietnam is seeking high-quality funding from Austria and Europe following its securities market upgrade. The GDP growth rate for the first half of 2026 is projected at 8.18%, necessitating significant investments to achieve high-income status by 2045. Plans include establishing international financial centers in Ho Chi Minh City and Da Nang, promoting fintech and green finance. Additionally, Vietnamese stocks are set to be included in the FTSE Russell Global Index starting September 21, increasing the demand for transparency and security for international investors.
Business impactFor Japanese companies, the enhanced international recognition of the Vietnamese market signifies expanded investment opportunities. Relevant sectors, particularly in finance and technology, need to closely monitor market trends to capitalize on new business opportunities.

Key pointsA subsidiary of PetroVietnam has successfully completed and transported four offshore substations for the Baltica 2 project off the coast of Poland. This marks the first export of Vietnamese-made offshore wind power products to Europe. The project has a total capacity of 1.5GW and includes 107 wind turbines.
Business impactThis export demonstrates the international competitiveness of Vietnam's renewable energy industry, prompting related companies to consider participation in future international projects.