Vietnam Aims to Master 500kV Reactor Technology

Key pointsVietnam aims to master the design and manufacturing technology for 500kV reactors. Currently, all equipment is reliant on imports, and domestic production is urgent due to the expansion of the national power grid. The project is led by the East Asia Electric Equipment Corporation (EEMC) in collaboration with Hanoi University of Science and Technology.
Business impactJapanese companies need to consider technological partnerships and investments to seize new business opportunities arising from the localization of Vietnam's power infrastructure.

Key pointsOn September 28, 2026, a workshop on tax policies for FDI companies was held in Hanoi, emphasizing the importance of transparency and compliance. Discussions included expanding exports and diversifying markets using CPTPP, as well as reviewing tax exemption provisions for SMEs.
Business impactJapanese companies will be able to establish clearer tax planning due to improved transparency in tax policies. It is essential to pay attention to tax reforms for FDI companies and consider appropriate responses.

Key pointsOil prices have begun to rise again following the U.S. rejection of Iran's peace proposal. Tensions in the Strait of Hormuz have reignited concerns in international markets, and Vietnam's economy, due to its dependence on energy imports, is particularly susceptible to price fluctuations. The increase in gasoline prices is expected to immediately affect citizens' lives and could impact prices and corporate performance.
Business impactFor Japanese companies, rising oil prices will lead to increased transportation and manufacturing costs, which could pressure profit margins, especially within the manufacturing supply chain. While interest in the energy sector is growing, attention must also be paid to trends in industries that are vulnerable to these changes.

Key pointsVietnam has launched a project to manufacture 500kV horizontal compensation coils for the national power grid, contributing to enhanced energy security and reduced import dependency. The project is led by Eastern Electric Equipment Manufacturing Corporation (EEMC) with support from the Ministry of Science and Technology. The goal is to produce coils that comply with international standard IEC 60076, specifically 120 MVAr/500 kV, improving the stability and efficiency of the power grid.
Business impactThis project promotes self-sufficiency in Vietnam's power equipment and presents new business opportunities for Japanese companies. In particular, companies providing power-related technologies and products will need to reassess their strategies in anticipation of increased demand.

Key pointsViettel IDC was the only company listed among the 57 sovereign cloud service providers announced by Broadcom at VMware Explore 2026 in Las Vegas. This strengthens Viettel IDC's position in the cloud infrastructure market in Southeast Asia.
Business impactJapanese companies should closely monitor Viettel IDC's developments and consider collaboration with the company for cloud service implementation and digital transformation.

Key pointsThe Vietnamese government has decided to relax the Economic Needs Test (ENT) requirements for foreign retailers. This will facilitate the opening of new stores by Japanese brands such as Aeon, FamilyMart, FujiMart, and Uniqlo. The new regulations will take effect on October 18, 2026, and will particularly benefit Japanese companies as they will enjoy advantages as CPTPP member states. Aeon aims to open 300 stores by February 2031, and the exemption from the ENT is expected to significantly shorten the time required for store openings.
Business impactJapanese companies should closely monitor this development and assess its impact on related transactions, contracts, and local operations.

Key pointsBy the first half of 2026, Vietnam's online shopping market is expected to reach 292 trillion VND (approximately 13.5 billion USD), with consumers increasingly purchasing high-value items. Notably, the average purchase price on Shopee has risen by 43%, leading to the exit of many small shops from the market. This shift indicates an improvement in consumer purchasing power and will influence future market trends.
Business impactJapanese companies need to reassess their online sales strategies and consider measures to capture the growing demand for high-value products.