Inflow of Cheap Chinese Vegetables Raises Concerns for Southern Farmers

Key pointsR3 Lithium, a US company, hopes to collaborate on battery technology development and critical mineral processing in Vietnam. During a meeting on September 21, the CEO praised Vietnam's progress in electric transportation and proposed a partnership for green transition. R3 Lithium aims to establish a battery recycling and critical mineral ecosystem.
Business impactThis move indicates new business opportunities for Japanese companies in the Vietnamese market. In particular, companies with environmental and recycling technologies can achieve sustainable growth through collaboration with R3 Lithium.

Key pointsOn September 21, selling pressure on large-cap stocks increased, causing the VN-Index to drop by 15.99 points (-0.88%) to 1,799.67 points. Real estate stocks were particularly affected, with VHM, VIC, and VRE experiencing significant declines.
Business impactFor Japanese companies, the movement of the VN-Index impacts investment strategies, necessitating close attention to developments in the real estate sector. A flexible response to market fluctuations is required.

Key pointsVietnam has exported 16,000 tons of steel structures necessary for the Baltika 2 wind power project in Poland. This project has a total investment of $7.8 billion and includes components manufactured by the Vietnamese company PTSC M&C. The components have passed 720 tests and have been confirmed to withstand Poland's harsh marine environment. The project will collect power from 107 wind turbines and supply it to Poland's power grid.
Business impactThis export demonstrates the international competitiveness of Vietnam's manufacturing sector and provides new business opportunities for Japanese companies, particularly in the renewable energy sector.

Key pointsOn September 21, 2026, a large influx of Chinese vegetables into Ho Chi Minh City, Vietnam, has caused prices to drop to half of domestic levels. Carrots and potatoes are being sold at particularly low prices, putting pressure on domestic farmers' profits. Southern farmers are worried about price declines due to reduced domestic vegetable supply caused by weather conditions.
Business impactJapanese companies need to reassess their agricultural procurement strategies, taking into account the competitiveness of Chinese products. Strengthening collaboration with domestic farmers to ensure stable supply is also crucial.

Key pointsThe tax authority has instructed not to refuse value-added tax refunds solely based on risk warnings from sales agents. This aims to prevent unjust delays in eligible refunds. The authority emphasizes the need to verify actual transactions when reviewing refunds based on risk information.
Business impactJapanese companies need to understand that the criteria for risk assessment in tax filings and refund processes are changing, and they must prepare appropriate documentation.