Challenges in Attracting Technology Companies to Ho Chi Minh City

Key pointsHo Chi Minh City needs not only preferential policies but also the development of an industrial support ecosystem and domestic supply chains to attract large-scale high-tech projects. Companies are struggling to find high-quality technology suppliers, which poses a barrier to investment.
Business impactJapanese companies considering business expansion in Ho Chi Minh City will need to strengthen collaboration with local suppliers and work towards building an ecosystem, with a particular focus on securing technology suppliers.

Key pointsOn August 29, 2026, CHUNGYONG23 Corp. opened the 'CHUNGYONG23 Global Digital Trade & Investment Hub' in Ho Chi Minh City as part of the 'Vietnam-Korea Trade Promotion Day.' This center, supported by Arobid.com and in collaboration with the Singapore AI Association, aims to expand international business connections in B2B e-commerce. A digital trade exhibition between Vietnam and Korea is also planned for 2026-2027.
Business impactJapanese companies should monitor this development and assess its implications for related transactions, contracts, and local operations.

Key pointsAhead of the September 2 holiday in 2026, four bus companies in Can Tho City have raised their fares, with the highest increase reaching approximately 40%. Mỹ Duyên Company has raised fares by 35% to 38.89%. This significant fare increase is expected to impact users of long-distance buses from Can Tho City.
Business impactJapanese companies need to consider the impact of fare increases on logistics costs and review their transportation planning and cost management. Flexible logistics strategies that respond to demand during the holiday period will be essential.

Key pointsVietnam's Resolution No. 21 aims to make the land price evaluation mechanism public and transparent based on data and scientific methods. This resolution seeks to strengthen the connection between land data and related databases to suppress price manipulation and false price formation. It also indicates a policy to minimize land subdivision and sales in urban areas, which is expected to significantly impact land transactions and development methods.
Business impactFor Japanese companies, the improvement of land price transparency is a crucial factor in investment planning and real estate development. In particular, clearer land evaluation standards may facilitate cost forecasting and risk management, potentially enhancing operational efficiency.

Key pointsOn the first day of the September 2 holiday in 2026, commercial facilities and supermarkets in Ho Chi Minh City were bustling with families, and discounted products were prominent. Emart, in particular, had a plentiful supply of fruits with discounts ranging from 10% to 20%. Many households focused their shopping on groceries, showing a tendency to prioritize discounted items. A significant number of families spent the holiday at home, shopping in preparation for meals.
Business impactJapanese companies should closely monitor consumer trends in Ho Chi Minh City and adjust their inventory management and promotional strategies to align with the increased demand for groceries and daily necessities. Attracting consumer interest through discounts and special campaigns will be crucial.

Key pointsShark Le Phu An's company has commenced construction on three projects totaling approximately 11 trillion VND at the South Tan Binh Industrial Park in Da Nang. This will establish a 346-hectare industrial park, with the first factory expected to be operational by 2027. Da Nang City aims to support the project's progress and create local employment opportunities.
Business impactJapanese companies should monitor this development and assess its implications for related transactions, contracts, and local operations.

Key pointsVietnam is seeking sustainable growth in the face of climate change, resource depletion, energy transition, aging population, and rapid technological changes. At a recent international symposium titled 'Economic Development and Sustainable Transition,' many opinions were expressed that economic growth should not exceed natural limits. There is a particular emphasis on growth based on labor productivity and innovation. Transitioning to a sustainable growth model is urgent for Vietnam, which aims to become a high-income country by 2045.
Business impactJapanese companies need to pay attention to the changes in Vietnam's growth model and develop environmentally conscious business strategies. Adapting to new policies regarding resource management and sustainable development is particularly necessary.

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 pointsDa Nang City has initiated several significant industrial park projects in the south, with a total investment exceeding one trillion dong. On August 29, three projects in the South Tan Binh Industrial Park officially broke ground, with a total investment of 11 trillion dong. This includes 18 hectares of rental factories, 29.5 hectares of infrastructure development, and a wastewater treatment facility with a capacity of 4,200 cubic meters per day. The aim is to promote high-tech investments starting in 2027. Additionally, the Tam An 1 Industrial Park has also commenced with over 15 trillion dong in investment across 167 hectares. These projects are part of Da Nang City's strategy to restructure its economic space, enhancing local job creation and the integration of production and logistics.
Business impactFor Japanese companies, the development of industrial parks in Da Nang City presents new investment opportunities, particularly in high-tech industries. Attention should be paid to future infrastructure improvements and administrative process enhancements, necessitating timely investment decisions.

Key pointsThe Bank for Investment and Development of Vietnam (BIDV) has announced a preferential loan program called 'First Home' for individuals, amounting to 30 trillion VND. This program is designed to meet actual housing needs, particularly targeting young people. It offers three interest rate options: 9.5% for 12 months, 10% for 18 months, and 10.5% for 24 months, which are 2% lower than standard mortgage rates. A repayment period of up to 30 years is available, easing the repayment burden for customers. Conditions are set for obtaining loans to purchase housing.
Business impactThis preferential loan program could be utilized by Japanese companies to support their employees in purchasing homes. Providing housing purchase assistance as part of employee benefits, especially for younger employees, may enhance the attractiveness of companies.