Ho Chi Minh City Digitizes Four Administrative Procedures

Key pointsIn HCMC, many infrastructure projects have commenced simultaneously in line with the National Day, leading to expected improvements in transportation. Notably, the expansion of National Route 13 has begun, with a 60-meter wide road expected to be completed by 2029. This movement is revitalizing the real estate market, causing prices to surge by 20-25% compared to a few years ago, with properties near the city center anticipated to increase by 60-80%.
Business impactThis infrastructure development may create new business opportunities for Japanese companies. Real estate-related businesses, in particular, need to reassess their investment strategies in light of rising prices. Additionally, improved transportation will enhance logistics and commuting efficiency, positively impacting business operations.

Key pointsHo Chi Minh City has digitized four administrative procedures, including birth registration, permanent residence registration, issuance of health insurance cards, and identity cards for children under six years old. This allows for online processing, which is expected to expedite the procedures.
Business impactJapanese companies can utilize the digitized procedures to enhance the efficiency of administrative tasks, leading to faster business operations.

Key pointsHo Chi Minh City has reviewed the conditions for land division and announced a new minimum division area of 36 square meters. This new land policy, effective from January 1, 2026, aims to meet the actual needs of social security, including significant changes related to land recovery, resettlement, and urban development. Improved efficiency in land use is expected as a result.
Business impactJapanese companies need to understand the new regulations regarding land use and consider appropriate responses, especially in real estate development and investment planning. It is crucial to reassess strategies for land acquisition and use before the new policies take effect.

Key pointsOn National Day 2026, 15,500 technicians and workers celebrated at the APEC construction site in Phu Quoc in a special manner. They sang the national anthem and continued working despite the holiday. The site expressed patriotism through sweat, responsibility, and anticipation for APEC 2027.
Business impactSuch celebrations on National Day can boost worker morale and positively impact project progress. Japanese companies should also respect local culture and holidays while striving to improve the working environment.

Key pointsAirstrikes have resumed between the United States and Iran, causing a sharp increase in oil prices. This has led to a decline in the US stock market and heightened geopolitical risks. As Vietnam imports oil, there are concerns about rising prices and impacts on growth rates, particularly with potential increased investment in energy-related sectors.
Business impactFor Japanese companies, rising oil prices mean increased energy costs and logistics expenses, which could affect manufacturing supply chains. It is essential to monitor market trends and consider appropriate responses.

Key pointsInternational gold prices have fallen to a two-week low due to concerns over rising interest rates. In August, gold prices rose by 10%, marking the largest monthly increase of the year, but short-term expectations of interest rate hikes are diminishing gold's appeal. In the Vietnamese economy, fluctuations in gold prices affect personal asset allocation and investment sentiment. Notably, the decline in gold prices may encourage capital inflows into the stock market; however, rising interest rate concerns could pose headwinds for the stock market.
Business impactFor Japanese companies, fluctuations in exchange rates and financing costs due to interest rate expectations may have indirect effects. Particularly when considering investments in the Vietnamese stock market, it is important to balance gold and dong-denominated assets in asset allocation.

Key pointsAs Vietnam approaches its National Day on September 2, 2026, major transportation infrastructure projects are seeing thousands of engineers and workers on-site, operating in three shifts to expedite construction. The government has made new decisions to ensure the swift implementation of projects leading up to APEC 2027, securing progress and aiming for timely completion.
Business impactFor Japanese companies, the advancement of infrastructure projects directly impacts logistics and supply chains. Careful attention is needed for scheduling and material procurement, especially in areas where construction is taking place.