Keppel's Profit Drops 59%, Over 10,100 Unsold Homes in Vietnam

Key pointsThe construction department of Ho Chi Minh City has sent documents to Dong Nai, Tay Ninh, and Lam Dong provinces seeking opinions on plans for circular roads and highways. This plan includes the addition of Circular Road No. 4 and No. 5, with two proposed routes for Circular Road No. 5, which is 487km long. This is expected to enhance urban development and inter-regional connectivity.
Business impactThe expansion of this circular road is likely to contribute to the efficiency of logistics and transportation, potentially reducing transportation costs and improving operational efficiency for Japanese companies. Particularly, the construction and logistics industries should closely monitor this trend.

Key pointsKeppel's net profit for the first half of 2026 decreased by approximately 60%, falling below 155 million SGD. This decline is primarily due to a loss of 375 million SGD in its non-core investment portfolio. In Vietnam, the company has over 10,100 unsold homes and plans to launch three projects in the market over the next six months. Revenue reached 3.8 billion SGD, a 25% increase compared to the same period last year, but profits have significantly decreased, particularly due to the decline in asset value of aging drilling equipment.
Business impactFor Japanese companies, Keppel's profit decline indicates risks associated with real estate investment in the Vietnamese market. The high number of unsold homes may impact future sales strategies and cash flow. The investment sector needs to closely monitor market trends and consider appropriate responses.

Key pointsMasang Consumer has penetrated approximately 98% of households in Vietnam through brands like CHIN-SU and Nam Ngư. Recently, the company was listed on HOSE and joined the VN30 index. It was also added to FTSE Russell's FTSE Global All Cap, increasing its connections with domestic and international investors.
Business impactMasang Consumer's growth suggests investment opportunities for Japanese companies. Particularly, as competition intensifies in the consumer goods market, related businesses need to monitor market trends and reassess their strategies.

Key pointsVietnam's printing and packaging industry is facing intense competition from FDI companies and stringent technical barriers in the US and EU markets, necessitating a strategic shift. Domestic companies have production costs approximately 15% higher than FDI firms, with 80% using traditional technologies, leading to decreased profit margins. The 'VietnamPrintPack 2026' event, scheduled from September 16 to 19, 2026, in Ho Chi Minh City, will showcase the latest automation technologies, aiming to enhance corporate competitiveness.
Business impactJapanese companies need to consider adopting the latest technologies to maintain competitiveness in the Vietnamese market. Particularly, investment in technology is crucial for reducing manufacturing costs and complying with environmental standards.

Key pointsVietnam aims for net-zero emissions by 2050, necessitating high-tech production efforts in the agricultural sector. Consequently, the promotion of green finance is emphasized, with domestic financial institutions expanding loans for environmentally friendly agricultural projects. Notably, banks such as BIDV and VCB have introduced green loan programs to support sustainable agricultural development.
Business impactJapanese companies are required to establish environmentally conscious production systems through the utilization of green finance. Particularly, businesses engaged in agriculture need to reassess loan conditions and project selection criteria.

Key pointsHo Chi Minh City proposes to expand the scope of the direct power sales mechanism to include customers from power plants using liquefied natural gas (LNG) and industrial zones. This proposal aims to broaden opportunities for companies to access clean energy. Particularly, as the use of renewable energy advances, companies may achieve cost reductions and sustainable energy supply through direct power sales.
Business impactThis new mechanism could contribute to energy cost reductions and the securing of sustainable energy for Japanese companies. Especially in manufacturing and export sectors, improving energy efficiency is directly linked to competitiveness.