Completion of Power Infrastructure for APEC 2027

Key pointsThe Southern Power Corporation (EVNSPC) has completed a significant power infrastructure project for APEC 2027, activating three major power facilities in August. This has improved the power supply capacity of Phu Quoc Special Economic Zone, laying the groundwork for the APEC Summit. These projects were expedited under a special mechanism approved by the National Assembly.
Business impactThe infrastructure development for APEC 2027 presents new business opportunities for Japanese companies, particularly for those in the energy sector considering operations in Phu Quoc.

Key pointsBond yields in G7 countries have surged, leading to an expected increase in interest payments by billions of dollars. This situation is driven by escalating tensions between the U.S. and Iran, raising concerns about the global cost of capital affecting Vietnam's economy. There is a heightened risk of capital outflows from foreign investors.
Business impactFor Japanese companies, the global rise in interest rates may impact borrowing costs for local subsidiaries and the entire supply chain. Companies that rely on dollar-denominated financing will face a dual risk management challenge involving both currency and interest rates.

Key pointsIn the Vietnamese stock market, individual investors sold a net 2,006.5 billion VND (approximately 12.16 million USD) before the holidays, contributing to a total net sell-off of 3,600 billion VND (approximately 21.8 million USD). This trend is seen as a position adjustment ahead of the holiday, particularly marked by significant selling from individual investors. The self-trading sector also contributed to the sell-off, increasing market pressure. The skew in capital flow among market participants is an important indicator for the outlook of the Vietnamese economy.
Business impactFor Japanese companies, while the short-term skew in capital flow may have limited direct impact, it indirectly relates to the funding environment for local subsidiaries and capital policies through the stock market. In periods of low liquidity, price movements can be amplified, necessitating caution.

Key pointsThe Ho Chi Minh City People's Committee announced Decision No. 67 on March 11, 2026, which establishes conditions for land division and integration, as well as minimum area requirements. Notably, the verification of common access routes necessary for land division is emphasized to be delegated to local authorities. Experts are calling for simplification of procedures and increased transparency, suggesting that local authorities centralize the processes to help residents avoid unnecessary steps.
Business impactThis new regulation may streamline land acquisition and development procedures for Japanese companies. In particular, the real estate sector will need to review its processes based on the new regulations and respond swiftly.

Key pointsAnalysts indicate that speculation regarding a Fed rate cut could lead to significant fluctuations in gold prices. The U.S. public debt issue is seen as a factor driving gold price increases, which may also affect the Vietnamese economy and stock investments. The price of gold could vary by several dozen dollars within a week.
Business impactFor Japanese companies, the Fed's monetary policy can impact exchange rates and supply chain costs, making it crucial for sectors involved in manufacturing and import/export to remain vigilant. Fluctuations in gold prices may influence investment decisions and funding strategies.

Key pointsConsul General Ho An Tuan has been working to invite technology leaders from Silicon Valley to Vietnam during his 3.5-year tenure in San Francisco. He has met with notable figures such as Sam Altman, CEO of OpenAI, and Jensen Huang, CEO of Nvidia, focusing particularly on building relationships with Saeed Amidi, founder of Plug and Play Tech Center. Amidi has successfully supported many startups and raised awareness of Vietnam's technological potential. Diplomatic efforts to enhance the development of Vietnam's technology sector are expected to strengthen in the future.
Business impactJapanese companies should monitor this trend and assess its implications for related transactions, contracts, and local operations.