Vietnam Flag and Congratulations at New York Stock Exchange

Key pointsThe Vietnam Small and Medium Enterprises Association has proposed the establishment of a specialized digital bank for small and medium enterprises (SMEs) and individual business owners. This initiative aims to address credit provision challenges and facilitate funding for SMEs, which currently make up 98% of all businesses and play a crucial role in the economy, yet face significant barriers to financing.
Business impactThe establishment of this digital bank will provide new funding options for SMEs, and Japanese companies should pay attention to this development.

Key pointsAt the New York Stock Exchange (NYSE), a message celebrating Vietnam's upgrade from frontier to emerging market was displayed alongside the red star flag. This event symbolizes the enhancement of Vietnam's position in the international capital market, with NYSE's Alex Hong praising the efforts of the Vietnamese people, government, and businesses. Vietnam is expected to strengthen its connections with international markets and expand opportunities for capital inflow.
Business impactJapanese companies should monitor this development and assess its impact on relevant transactions, contracts, and local operations.

Key pointsVietnam's textile industry has announced a goal of approximately $48 billion in exports by 2026. The industry aims to improve the quality of growth and optimize manufacturing costs while flexibly responding to market changes, thereby enhancing its competitiveness in the international market.
Business impactJapanese companies need to consider reviewing their supply chains and exploring new business partners in response to the growth of Vietnam's textile industry. Efforts towards quality improvement and cost reduction will be particularly important.

Key pointsPhu Quoc Construction Company was fined for issuing bonds despite having a debt-to-equity (D/E) ratio exceeding 5 times. As of June 30, 2026, the D/E ratio is over 7 times, but it decreases to 4.4 times when excluding advance payments.
Business impactThis case indicates that monitoring of corporate financial health in Vietnam is being strengthened. Japanese companies need to rigorously manage financial ratios and enhance regulatory compliance.

Key pointsThe Federal Reserve's announcement of a rate hike is expected to have a limited impact on the Vietnam stock market. The market had already priced in this decision, particularly influenced by the market upgrade event on September 21. Historical data shows that the VN-Index tends to decline before the Fed's rate hike announcement but stabilizes afterward. Experts indicate that future market trends will depend on domestic interest rates and currency movements.
Business impactJapanese companies are unlikely to be directly affected by the Fed's policy changes, but they should pay attention to domestic interest rate trends. This is particularly important as it may impact funding and investment plans, so the finance department should closely monitor future developments.

Key pointsSince Siam Brothers Vietnam went public in 2016, there have been no new listings of FDI companies on Vietnam's securities market. FDI companies account for only about 0.15% of total capital, facing barriers such as obligations tied to government incentives and the demand for high transparency in management. The decision for FDI companies to go public depends on their growth strategies and market approaches.
Business impactJapanese companies need to understand the reasons behind the lack of FDI company listings and reassess their investment strategies. It is particularly important to strengthen collaboration with companies aiming for public listing.

Key pointsThomas Nguyen from SSI Securities stated that Vietnam could see up to $10 billion in investment inflows due to its upgrade to the FTSE emerging markets. The weight of Vietnam in the FTSE Emerging All Cap Index is expected to rise to approximately 0.49-0.50%, increasing the presence of foreign investors.
Business impactFor Japanese companies, the FTSE upgrade may enhance market transparency and activate trading, potentially improving the fundraising environment. There is an expectation of broader foreign investor participation, particularly in the manufacturing and service sectors.