FE CREDIT Faces Profit Decline Amid Intensifying Competition

Key pointsThree ongoing BT projects in Khanh Hoa Province are facing delays due to legal procedures and land issues related to fund recovery. The recovery of funds using land from the former Nha Trang Airport is a significant challenge affecting project progress. The government is introducing new policies to resolve these issues and is engaging in dialogue with stakeholders.
Business impactJapanese companies involved in projects in Khanh Hoa Province need to stay updated on the latest information regarding land use and fund recovery procedures and consider appropriate responses. It is particularly important to monitor the progress of legal procedures and understand factors that may impact project advancement.

Key pointsIn the first half of 2026, profits of six consumer finance companies in Vietnam increased by 37%, but FE CREDIT is struggling due to credit risk provisions and competition with VietCredit. As market competition intensifies, FE CREDIT needs to explore new strategies.
Business impactJapanese companies should closely monitor FE CREDIT's trends and consider revising risk management and strategies in the consumer finance market.

Key pointsFour new regulations and five tax circulars will be announced on June 30, 2026, and will take effect from July 1. Small businesses are struggling to keep up with frequent tax changes and are required to respond appropriately. The rapid changes in tax standards make it difficult for businesses to understand and comply with new regulations.
Business impactJapanese companies need to establish a flexible system to respond to sudden tax changes. It is particularly important to provide advice based on the latest tax regulations when dealing with small businesses.

Key pointsMajor projects in Ho Chi Minh City have a funding plan of 143 trillion VND for 2026, with 58 trillion VND implemented in 8 months. Sun Group achieved 11.9 trillion VND, Vingroup-related projects reached approximately 18 trillion VND, and Masterise reached 4.9 trillion VND. Overall progress remains at 40%.
Business impactThis progress indicates the need for Japanese companies to reassess their project implementation plans, emphasizing the importance of not missing out on infrastructure investment opportunities.

Key pointsIn Dong Nai Province, authorities are considering adjustments to the truck ban hours on Dong Khoi Street in response to requests from multiple companies and associations, including the Dong Nai Import-Export Association and the Logistics Association. They are exploring ways to revise the restricted hours to mitigate the impact on logistics for businesses. A meeting is scheduled for September 7 to discuss specific proposals. Companies have expressed demands for a reduction in the restricted area and the reinstatement of previous ban hours.
Business impactIf these adjustments are implemented, they may affect logistics costs and delivery times for Japanese companies. In particular, businesses located in industrial zones within Dong Nai Province will need to pay close attention to changes in the ban hours.

Key pointsFounders of Vietnamese technology companies are concerned about developing new business models amid lagging laws. Notably, Sky Mavis, successful with the game 'Axie Infinity', is legally registered in Singapore. The reasons for Vietnamese-born companies establishing headquarters abroad include legal uncertainty and easier access to funding. The rapid evolution of new technologies and business models is hindered by regulations that cannot keep pace.
Business impactJapanese companies should consider legal risks when expanding new businesses in Vietnam and contemplate establishing overseas entities as necessary. Additionally, it is crucial to monitor government deregulation trends and prepare to respond flexibly.

Key pointsThe tax authority for e-commerce has issued guidelines for platform administrators on how individual entrepreneurs can temporarily pay personal income tax. This aims to simplify tax declarations and support individual entrepreneurs in continuing their businesses with confidence.
Business impactJapanese companies engaging in sales activities through e-commerce must comply with these new guidelines. It is particularly important to stay updated on the latest information regarding tax processing and declaration procedures.

Key pointsHeineken announced plans to invest an additional $500 million in Vietnam over the next 5 to 10 years to build Asia's largest brewery. CEO Jacques van der Linden from Amsterdam described Vietnam as 'one of the most attractive markets in the world,' with total investments since 1991 reaching approximately $1 billion. The new investment aims to strengthen competitiveness in the high beer consumption market of Vietnam.
Business impactThis investment plan may provide new business opportunities for Japanese companies amid increasing competition in the Vietnamese market. It is particularly important to monitor Heineken's trends in the manufacturing and distribution sectors.