Effective Resource Utilization for Economic Development in the New Era

Key pointsIn the era of the digital economy, it was emphasized that advantages for development rely not only on capital, land, and resources but also on the ability to create, absorb, and master knowledge and new technologies. By 2025, the digital economy is expected to account for 14.02% of GDP, with labor productivity also improving, although R&D investment remains at 0.41% of GDP.
Business impactJapanese companies need to focus on human resource development and technological innovation in Vietnam, particularly in securing talent in the IT and digital sectors. Companies should strengthen collaboration with universities and research institutions to advance the commercialization of knowledge.

Key pointsREE Energy and a related company of Xuân Cầu Holdings have proposed a 200MW wind power project in Can Tho. This project aims to expand both companies' presence in the renewable energy sector. The Can Tho City Department of Finance is accepting investment proposals and is expected to consider proposals from other investors as well.
Business impactFor Japanese companies, Vietnam's renewable energy market presents growth opportunities. Companies considering entry into wind power projects should understand local regulations and market trends.

Key pointsBat Trang Village has formed an ecosystem from traditional crafts, creating jobs in production, commerce, services, and tourism, thereby increasing residents' income. This secure local livelihood helps protect traditional crafts and serves as a resource for new rural development. Hanoi aims to improve the quality of vocational training in rural areas by 2030.
Business impactJapanese companies have the opportunity to strengthen collaboration with local traditional crafts and build sustainable business models, particularly focusing on tourism and the utilization of local resources.

Key pointsVietnam's banking sector is projected to see profits exceed 19% year-on-year in the third quarter of 2026, supported by increased lending to large enterprises and FDI-related credit expansion. However, there are still non-performing loan risks in SME and high-interest personal loans, particularly evident in commercial banks with stock trading. This may impact the valuation of bank stocks.
Business impactFor Japanese companies, the expansion of FDI-related lending suggests an improvement in the funding environment, but it is crucial to monitor non-performing loan trends in SME and retail lending. Strengthening relationships with local banks and thorough risk management are necessary.

Key pointsConcerns have been raised by lawmakers in the Vietnamese National Assembly regarding the limitation of corporate tax benefits for small and medium-sized enterprises (SMEs) to three years. It has been pointed out that many companies may see the benefit period end before they can generate profits, questioning the effectiveness of support measures for SMEs.
Business impactFor Japanese companies, a decrease in the effectiveness of tax incentives could impact procurement strategies, as they build supply chains through relationships with SMEs. It is important to assess the growth environment for SMEs.

Key pointsHanoi has announced new regulations encouraging leaders of state-owned enterprises to voluntarily resign if they do not meet job requirements or have lost trust. This regulation applies to management and auditors, clarifying procedures for appointments, resignations, and dismissals. It particularly emphasizes voluntary resignation in cases of lost trust, aiming to enhance transparency and efficiency in corporate operations.
Business impactThis regulation presents an opportunity for Japanese companies to strengthen a culture that values the reliability and accountability of management. Specifically, there is a need to review the criteria for selecting management to improve corporate governance and leadership quality.