Development of National Budget Management Policies for Local Government Dual-Model

Key pointsIn the first seven months of 2026, Vietnam's textile product exports reached $27 billion, marking a 2.7% increase compared to the same period last year. The textile industry is seeking new growth drivers and is adapting flexibly to market fluctuations. A restructuring of the industry is underway, with expectations for sustainable growth.
Business impactThe growth of the textile industry offers new business opportunities for Japanese companies. In particular, the manufacturing sector will need to reassess strategies to respond quickly to market changes and maintain competitiveness.

Key pointsVietnam's national budget management agency is developing budget management policies suitable for the dual-model of local government, promoting the decentralization of authority and simplification of procedures to facilitate rapid disbursement of public investment funds. As a result, the disbursement rate of public investment funds has reached 38.1%, and the payment time has been reduced from two business days to one. Additionally, the introduction of electronic services has enabled all budget expenditures to be processed online.
Business impactThis policy means faster participation and funding for Japanese companies in public investment projects. In particular, the accounting departments will need to adapt to new procedures and establish systems to ensure smooth cash flow.

Key pointsAt the 2026 Vietnam Private Economic Forum, businesses in Lai Chau raised issues regarding access to land and the need for expedited investment procedures. They expressed that difficulties in land acquisition are impacting their operations and are seeking solutions from local government.
Business impactJapanese companies should monitor this situation and assess its potential impact on related transactions, contracts, and local operations.

Key pointsOn August 14, 2026, Be Group and Hanoi Metro announced an 'integrated transportation solution' in Hanoi, Vietnam. This will allow Hanoi residents to easily book combined travel using the BE app and Metro. This initiative is a significant step towards realizing the Mobility as a Service (MaaS) model.
Business impactThis integration will promote the efficiency of transportation infrastructure, prompting companies to reassess their employees' commuting options.

Key pointsThe Vietnam Real Estate Market Research Institute (VARS IRE) emphasizes that issues in real estate financing go beyond mere tightening or easing; the allocation of funds is crucial. It is necessary to review lending policies based on project progress and risk. Specifically, classifying projects and allocating funds according to risk is required. This approach allows prioritization of funding for viable projects and helps mitigate risks.
Business impactJapanese companies should closely monitor this trend and assess its impact on related transactions, contracts, and local practices.

Key pointsThe president of Franking Company in Bac Ninh Province has been charged with selling counterfeit stainless steel products. He misled consumers by marking the products as 'SUS 304'. The police are strengthening measures to prevent the distribution of counterfeit goods.
Business impactJapanese companies should closely monitor this situation and assess its impact on related transactions, contracts, and local operations.

Key pointsAt the seminar 'LNG Power Development: Energy Security for Double-Digit Growth' held in Da Nang on August 14, 2026, LNG power development was positioned as part of the national energy security strategy. A plan was announced to enhance LNG import capacity and establish 22 LNG power plants nationwide by 2030 to support economic growth.
Business impactThe development of LNG power is expected to enhance the stability of energy supply and may impact energy costs for Japanese companies. There may be a need to reassess energy-related investment strategies.

Key pointsThe Vietnam Leather, Footwear and Handbag Association (Lefaso) reports that exporters are facing delays in the issuance of Certificates of Origin (C/O), particularly for the U.S. market, leading to increased costs and delayed delivery times. The issuance of C/O is crucial in export procedures, especially in markets without Free Trade Agreements (FTAs).
Business impactDelays in C/O issuance can increase tax burdens and disrupt logistics for exporters, necessitating close attention from the export sector and prompt action.