Vietnamese Consumers Prefer American Products but Seek Lower Prices

Key pointsAmerican products are gaining presence in the Vietnamese market, but consumers are expressing a desire for lower prices. At a recent event, 'Exploring American Agricultural Products,' American food and clothing were showcased, attracting significant consumer interest. While American fruits and meats are highly regarded for their quality, many consumers hesitate to purchase due to higher prices. The American Consul General emphasized the importance of increasing consumer engagement through events.
Business impactJapanese companies need to reconsider their pricing strategies in light of the price competitiveness of American products. Companies importing American goods are particularly encouraged to explore strategies to reduce prices.

Key pointsThe People's Council of Ho Chi Minh City has announced a policy to provide interest subsidies of up to 50% for parking construction and operation projects. This subsidy will apply to the full amount of borrowing contracts and will be available for a maximum period of five years. Public consultations will be held until October 1, 2026, aiming to develop specific policies under the Urban Development Law. Projects eligible for subsidies are expected to contribute to smoother traffic and improved logistics.
Business impactThis policy may reduce the financial burden for Japanese companies investing in parking and logistics-related infrastructure. Given the ongoing issue of parking shortages in urban areas, relevant sectors should closely monitor this trend to seize investment opportunities.

Key pointsVietnam's state-owned enterprise TKV (Vietnam National Coal and Mineral Industries Group) is collaborating with American company Caterpillar to enhance service in the Vietnamese market. Both companies have committed to improving product quality and providing comprehensive customer support utilizing the latest technology. TKV has proposed policy revisions to ensure Caterpillar's products remain competitive. Caterpillar executives plan to visit TKV in October 2026 to explore further cooperation opportunities.
Business impactThis collaboration may contribute to TKV's productivity improvement and competitiveness enhancement. Japanese companies should seek new business opportunities leveraging Caterpillar's technology, particularly considering partnerships in the mining and construction sectors.

Key pointsHo Chi Minh City is formulating funding policies for the development and maintenance of transportation infrastructure. The city is soliciting opinions from various agencies and individuals, with plans to complete 255 km of urban rail by 2030. This policy aims to promote regional logistics and development. Currently, Ho Chi Minh City is also focusing on attracting FDI, with infrastructure development seen as key.
Business impactJapanese companies may find increased opportunities to engage in infrastructure development projects in Ho Chi Minh City, making it worthwhile to consider participation in related projects, especially for those in construction and logistics.

Key pointsIn Vietnam, 63% of consumers use Facebook for purchases, and 58% connect with businesses via Messenger, significantly higher than the global averages of 33% and 30%, respectively. Vietnamese purchasing behavior intensifies during the year-end shopping season and Tet, with 85% of consumers participating in Tet.
Business impactJapanese companies need to strengthen their digital marketing strategies in the Vietnamese market and increase customer engagement through social media. The demand for personalized information suggests that implementing AI-driven marketing techniques would be effective.

Key pointsPVTrans plans to expand its fleet to 65 vessels by the end of 2025, capitalizing on rising ship purchase prices in the international market. The tensions in the Strait of Hormuz are expected to drive up liquid cargo freight rates, allowing for negotiations at higher prices during contract renewals.
Business impactFor Japanese companies, PVTrans's developments serve as a key indicator of changes in the shipping industry, necessitating close attention to the impact of rising liquid cargo freight rates on their business. Companies should reassess their strategies regarding contract renewal timing and pricing.

Key pointsThe Vietnamese government has indicated plans to convert the State Capital Investment Corporation (SCIC) into a national investment fund. This transition is expected to facilitate investment operations based on flexible market principles and potentially enhance the efficiency of state-owned enterprises. The specific timeline for this transition remains undecided, but it will fundamentally reconsider the management of state assets.
Business impactFor Japanese companies, the SCIC reform directly impacts the operational efficiency of their partners and joint venture collaborators, necessitating close monitoring of changes in capital structure and decision-making processes. Companies collaborating with SCIC-involved enterprises are likely to be significantly affected.

Key pointsVietnam's durian exports are expected to reach approximately $2 billion over the next eight months, primarily driven by revenue from the Chinese market. Meanwhile, Thailand has proposed a tax of $0.06 per kilogram on durian exports, which may reduce the competitiveness of Thai exporters.
Business impactFor Japanese companies, the increase in Vietnam's durian exports could impact agricultural supply chains and market strategies, necessitating a review of strategies to strengthen access to the Chinese market.

Key pointsVinhomes Ha Tinh has added 9.5 trillion VND in capital to construct the 965ha Vinhomes Vung Ang Industrial Park in Ha Tinh Province. This project will be managed by a subsidiary of Vingroup established in 2024, with an expected social investment of approximately 38.5 trillion VND between 2026 and 2030.
Business impactJapanese companies should pay attention to Vingroup's industrial park development and seek to optimize their supply chains and explore new business opportunities.

Key pointsHo Chi Minh City has announced a policy to provide interest subsidies for up to five years to investors involved in the construction and operation of public parking facilities, aiming to address the shortage of parking spaces. This initiative is intended to promote the development of transportation infrastructure under the Urban Development Law. Investors can receive a 50% interest subsidy through the city's financial investment company, and temporary use of certain roads and public land as parking spaces is also permitted. Additionally, there will be streamlined procedures and prioritized funding for public infrastructure development, which is expected to alleviate urban traffic congestion.
Business impactThis policy presents new investment opportunities for expatriates and Japanese companies regarding parking space acquisition and transportation infrastructure development. Companies engaged in parking-related businesses can leverage the interest subsidy to reduce initial investments and enhance the profitability of their operations.

Key pointsThe Hanoi People's Committee has allocated 273ha of land to CTCP Tapgrang Thuan Lai Son Hong for a mixed-use urban development project. This project includes commercial housing, resettlement housing, social housing, commercial service facilities, and infrastructure development, with a total of 429ha of land allocated. The company has increased its capital more than 26 times within just 9 months of establishment, showing rapid growth.
Business impactThis project is significant for Japanese companies to understand trends in the real estate market. It is particularly important to pay attention to changes in regulations regarding land use and development plans.

Key pointsVietnam Airlines signed a cooperation agreement with Canada's CAE Group on September 25 to enhance flight simulation technology. This partnership aims to strengthen the training system for pilots and maintenance personnel in preparation for the introduction of new aircraft. With the recovery of air travel demand, the industry faces a significant shortage of skilled personnel, making this collaboration crucial. Specific investment amounts and the number of training aircraft have not been disclosed, but further announcements are anticipated.
Business impactFor Japanese companies, the expansion of aviation infrastructure directly impacts the movement of personnel and transportation of goods. Particularly in manufacturing, the frequent exchange of parts and technicians makes the recovery of air travel demand essential for business stability, warranting close attention.