Vietnam and Russia Strengthen Cooperation for Business Support

Key pointsVietnam and Russia have committed to removing barriers for businesses and enhancing financial cooperation. Vietnam's Minister of Finance, Ho Duc Phoc, met with Russia's Minister of Finance, Anton Siluanov, expressing intentions to strengthen economic cooperation between the two countries. Over the first eight months of 2026, Vietnam's economy has maintained a recovery trend, with FDI reaching $40.63 billion. Trade between the two countries has reached $3.24 billion, marking a 12% increase compared to the same period last year.
Business impactJapanese companies should monitor this development and assess its impact on relevant transactions, contracts, and local operations.

Key pointsThe People's Committee of Ho Chi Minh City has approved a change in land use for a housing project in Tan Phu District, adding 2,141m². This land will be converted from agricultural to urban residential use for the construction of commercial housing and transportation facilities. The land use period extends until December 2026, bringing the total project area to 70,113m².
Business impactJapanese companies should monitor this development and assess its implications for related transactions, contracts, and local operations.

Key pointsHo Chi Minh City has decided to lease 44,591.2 square meters of land to Starmason for the data center 'Tổ hợp Trung tâm Dữ liệu Siêu lớn STARMASON'. The land lease is valid until 2076, with conditions for exemption from upfront rental payments. The total investment for the project is $480.26 million, aimed at enhancing data processing capacity and attracting ICT service providers.
Business impactThis project will promote growth in the data center market and provide new business opportunities for Japanese companies. In particular, as IT infrastructure strengthens, the demand for data management and cloud services will increase, making it essential for related businesses to pay attention.

Key pointsResearch by the U.S. Federal Reserve Board (FRB) indicates that the recent surge in gold prices is driven by increased demand from the private sector rather than a shift from dollars to gold by central banks. Many countries holding public gold reserves have not added to their gold holdings in over 50 years, which may prompt a reevaluation of international capital flows. This analysis could have indirect effects on the Vietnamese economy.
Business impactFor Japanese companies, the exchange rate trends of the dong and the dollar are directly linked to raw material procurement and cash flow, and international discussions surrounding gold prices are recognized as risk factors. It is important to verify the presence of currency hedges and the ratio of local currency-denominated assets.

Key pointsLee & Man Chemical has invested approximately $236 million to establish a chemical products factory in Ho Chi Minh City. This project is one of the large-scale FDI projects that received investment approval by the end of 2025.
Business impactThis move indicates an influx of foreign direct investment into the Vietnamese market, potentially introducing new competitors for Japanese companies.

Key pointsThe VN-Index, a key index of the Vietnamese stock market, has sharply declined, primarily due to the drop in major stocks VIC (Vingroup) and VHM (Vinhomes). Selling pressure has intensified compared to the morning session, with other stocks unable to provide support. This trend is likely to impact the overall market, particularly increasing caution in the real estate sector.
Business impactFor Japanese companies, the direct impact is considered limited; however, fluctuations in the real estate market may affect industrial park development and logistics costs, necessitating careful attention.

Key pointsRussian companies and investment funds are expressing intentions to expand investments in high technology, energy, and digital infrastructure in Vietnam. Notably, AFK Sistema plans long-term investments in information technology, AI, and smart cities. Additionally, Zarubezhneft is considering investments in renewable energy and offshore wind power. This is expected to further strengthen economic cooperation between the two countries.
Business impactJapanese companies should explore opportunities to leverage Russian technology and capital, particularly in joint projects in the energy and IT sectors.