Rising Interest Rates Impacting Vietnam's Economy

Key pointsFamilyMart has simultaneously opened 7 stores in Hanoi, providing a new convenient hub. The opening event featured a music stage and tasting sessions, attracting many visitors. FamilyMart plans to establish 20 stores in Hanoi by 2026 and expand by an additional 300 stores over the next five years.
Business impactThis expansion will enhance competitiveness in the Hanoi market and suggests new business model possibilities within Japan's retail industry. There is a need for rapid responses, especially as services focusing on urban convenience are increasingly demanded.

Key pointsVietnam's average lending rate has risen to 10.7%. This increase is influenced by competition in raising deposit rates, directly affecting corporate financing costs. Rising interest rates are a crucial indicator for economic growth as they directly impact corporate investment willingness and consumer loan burdens.
Business impactJapanese companies need to reconsider their funding plans in light of rising financing costs. Companies borrowing locally must closely monitor interest rate trends and implement appropriate measures.

Key pointsSaigon (Ho Chi Minh City) has a history of over 300 years closely tied to water. From old ports and docks to modern urban spaces, the Saigon River is a crucial element in shaping the city's landscape. Urban planning up to 2040 positions the Saigon River at the center of development, with improvements to public spaces and green areas underway, strengthening the connection between the city and nature.
Business impactJapanese companies have the opportunity to participate in development projects around the Saigon River, contributing to regional infrastructure and tourism growth. Building sustainable business models is essential, especially as environmentally conscious development is increasingly required.

Key pointsOn September 21, 2026, Vietnam's stock market was upgraded from frontier to emerging market status based on FTSE Russell criteria. This upgrade is seen as a significant step to attract international capital and expand funding opportunities to support Vietnam's economic growth. The CEO of FTSE Russell stated that Vietnam is a growth story to watch in Asia.
Business impactThis upgrade provides new investment opportunities for Japanese companies. In particular, it is expected to improve access to funding and the stock market as interest from international investors increases.

Key pointsIn September 2026, Vietnam's President Vo Lam will officially visit France, where a cooperation agreement regarding the LNG Long Son project was established between T&T Energy Group and TotalEnergies. This project aims to construct a large-scale LNG power plant in southern Vietnam, with 22 LNG projects planned between 2025 and 2035. LNG Long Son is expected to contribute to stabilizing power supply and economic development.
Business impactThis project will contribute to stabilizing energy supply for Japanese companies and provide investment opportunities. Companies engaged in energy-related businesses should closely monitor future developments.

Key pointsT&T Energy Group and TotalEnergies have signed a cooperation agreement for the development of the LNG Long Son Project. This project is a strategic initiative to promote Vietnam's energy transition.
Business impactThe project will enhance energy supply stability and provide new business opportunities for Japanese companies, particularly those in the energy sector, which should closely monitor this trend.

Key pointsVietnam's stock market is set to be upgraded to FTSE Russell's emerging market status on September 21, 2026, marking a significant event for the international standing of the Vietnamese economy. However, there are views that the VN-Index is already at a high level, and a rapid influx of foreign investment may not occur immediately. The upgrade will be implemented gradually, expected to continue until September 2027.
Business impactFor Japanese companies, the internationalization of the capital market may lead to an improved fundraising environment. In particular, it is anticipated that options will expand for local subsidiaries considering listing, but careful assessment of short-term market movements will be necessary.

Key pointsAs of the end of August 2026, the outstanding loans for tourism-related real estate in Ho Chi Minh City have reached 30 trillion VND. This financing is directed towards restaurants, hotels, and tourist attractions, accounting for 1.9% of the total real estate loan balance. There has been a 12.5% increase compared to the same period last year, indicating a recovery in the tourism sector. The tourism industry is considered a key driver of economic growth, and its future development is being closely watched.
Business impactThe increase in loans for the tourism sector is expected to facilitate the expansion of Japanese companies' tourism-related businesses. Particularly, the hotel and restaurant industries are in a favorable position for financing, making it essential to seize business opportunities.