FE CREDIT Faces Profit Decline Amid Intensifying Competition

Key pointsIn the first half of 2026, profits of six consumer finance companies in Vietnam increased by 37%, but FE CREDIT is struggling due to credit risk provisions and competition with VietCredit. As market competition intensifies, FE CREDIT needs to explore new strategies.
Business impactJapanese companies should closely monitor FE CREDIT's trends and consider revising risk management and strategies in the consumer finance market.

Key pointsFour new regulations and five tax circulars will be announced on June 30, 2026, and will take effect from July 1. Small businesses are struggling to keep up with frequent tax changes and are required to respond appropriately. The rapid changes in tax standards make it difficult for businesses to understand and comply with new regulations.
Business impactJapanese companies need to establish a flexible system to respond to sudden tax changes. It is particularly important to provide advice based on the latest tax regulations when dealing with small businesses.

Key pointsFounders of Vietnamese technology companies are concerned about developing new business models amid lagging laws. Notably, Sky Mavis, successful with the game 'Axie Infinity', is legally registered in Singapore. The reasons for Vietnamese-born companies establishing headquarters abroad include legal uncertainty and easier access to funding. The rapid evolution of new technologies and business models is hindered by regulations that cannot keep pace.
Business impactJapanese companies should consider legal risks when expanding new businesses in Vietnam and contemplate establishing overseas entities as necessary. Additionally, it is crucial to monitor government deregulation trends and prepare to respond flexibly.

Key pointsVingroup's high-speed rail project between Hanoi and Quang Ninh is scheduled to open by the end of 2028, with plans announced for the procurement of construction materials and power supply. Construction materials such as concrete and steel will be sourced from Hanoi, Bac Ninh, Hai Phong, and Quang Ninh, with an average transportation distance of 20 km. Additionally, over 85% of construction machinery is required to be new, and stability in power supply is emphasized.
Business impactThis project may promote efficiency in material procurement and supply chains within the construction industry. Japanese companies should consider opportunities for supplying related materials and providing technology.

Key pointsThe Netherlands, while a small market within the EU, serves as a crucial hub for the distribution of Vietnamese shrimp across Europe due to its strong logistics system utilizing Rotterdam Port. The Dutch seafood industry comprises approximately 206 companies with sales of 800 million euros. By 2025, the Netherlands is expected to import around 125,000 tons of shrimp, with 27,000 tons sourced from Vietnam.
Business impactVietnamese seafood companies can expect to expand into Northern and Western European markets by strengthening access to the Dutch market. There is a growing demand for processed shrimp products and convenient items, necessitating product diversification.

Key pointsStarting September 2026, Vietnam's railway industry will implement a policy to reduce fares by up to 40%. Notably, sleeper train fares will see significant discounts, and round-trip tickets and early purchase benefits will also be offered. This aims to meet travel demand and improve transportation efficiency. Additionally, ticket sales will begin at Saigon Station in preparation for Tet (Lunar New Year) in 2027.
Business impactJapanese companies should monitor this development and assess its impact on related transactions, contracts, and local operations.