Vietnam to Transform FDI Acceptance Model

Key pointsEconomic experts indicate that Vietnam needs to shift from a traditional acceptance model of foreign direct investment (FDI) to one that focuses on absorbing technology and leading production capabilities. The new generation of FDI requires improvements in the environment and strategic capacity development. A policy announced in June 2026 emphasizes the quality of investments and aims to enhance the competitiveness of domestic companies, raising questions about Vietnam's ability to escape the middle-income trap.
Business impactJapanese companies must strengthen technology transfer and collaboration with local firms to adapt to the new policy that prioritizes the quality of FDI. Particularly, manufacturing and technology companies should reassess their strategies to meet local needs.

Key pointsOn August 21, 2026, the Young Entrepreneurs Association of Ho Chi Minh City held its first congress, marking an important milestone for the association with over 30 years of history. The event was attended by Mayor Nguyen Van Duc, a member of the Central Committee of the Party, who emphasized the importance of supporting young enterprises and co-creating policies.
Business impactSupporting the growth of young enterprises presents new partnership opportunities for Japanese companies, particularly in collaboration with startups.

Key pointsAs of August 15, 2026, Vietnam's national budget revenue has surpassed 1,900 trillion dong, reaching 76.2% of the budget plan. Expenditures are approaching 1,500 trillion dong, showing 47.4% progress. Notably, Ho Chi Minh City's tax revenue has reached 466 trillion dong, indicating advancements in digitalization.
Business impactThe status of national budget revenue and expenditures will impact corporate tax planning and financing strategies, prompting Japanese companies to consider this in their financial strategies.

Key pointsOn August 21, 2026, a forum on 'Smart Port City Development' was held in Tan Phuoc, Ho Chi Minh City, gathering experts. Tan Phuoc is considered a crucial connection point in the economic corridor, featuring a deep-water port and a free trade zone. The city plans to enhance its digital infrastructure and establish a smart operations center to improve the investment environment. This aims to strengthen its role as a regional logistics center and become a core of new growth.
Business impactJapanese companies have the opportunity to participate in the smart city development in Tan Phuoc, improving efficiency in logistics and manufacturing. In particular, involvement in the development of digital infrastructure is expected to enhance competitiveness.

Key pointsOn August 21, 2026, Vietnam Railways Group held an event at the Gia Lam Railway Factory in Hanoi, bringing together historical witnesses and railway workers from four generations. This event commemorated the 145th anniversary of Vietnamese railways, allowing participants to reflect on past hardships and achievements. The significance of the railway industry and its historical context were emphasized, with participants sharing heartfelt sentiments.
Business impactUnderstanding the history of the railway industry is crucial for Japanese companies, especially those engaged in railway-related businesses, as they need to develop strategies that consider the industry's evolution.

Key pointsOn August 21, 2026, a forum on the Global Value Chain of Vietnam and ASEAN was held in Ho Chi Minh City, discussing new opportunities in international logistics and the development of sustainable agriculture. The forum emphasized the importance of addressing challenges in ASEAN's economic growth and trade, particularly the need for data and regulatory harmonization. ASEAN's trade accounts for only 22% of the total, which is low compared to the EU's 67%.
Business impactJapanese companies need to develop strategies that consider data and regulatory consistency to enhance their competitiveness in the ASEAN market. There is a particular demand for transparency and sustainability in supply chains.

Key pointsOn August 21, 2026, a press conference was held in Da Nang for the 'GBA Oktoberfest Vietnam 2026,' the largest German beer festival in Southeast Asia. Da Nang City announced its 'Green Tourism Accommodation Standards' as part of efforts to promote the tourism industry and aim for environmentally friendly tourist destinations. Additionally, an international trade, tourism, and investment fair will be held, with expectations for economic development in Da Nang.
Business impactThis event presents business opportunities in the tourism sector, offering Japanese companies a chance to explore new markets, particularly for those in the hospitality and food service industries.