Vietnam Urgently Needs Legal Framework for Nuclear Power

Key pointsDeputy Minister of Science and Technology Le Xuan Dinh stated that establishing a legal framework, developing specialized personnel, and advancing supporting industries are urgent for promoting Vietnam's nuclear power program. Nuclear power is considered a crucial energy source for Vietnam, which aims to become a high-income country by 2045, with the resumption of investment in the Ninh Thuan Nuclear Power Plant expected to be decided by the National Assembly by the end of 2024. This is anticipated to revitalize the regional economy and create jobs.
Business impactJapanese companies need to closely monitor trends related to legal frameworks and personnel development in nuclear power projects. In particular, there may be increased opportunities for technical support and personnel dispatch, so relevant sectors should prepare accordingly.

Key pointsVietnam's stock market is experiencing heightened expectations following an upgrade by FTSE, with attention now focused on the VN-Index's future trends. After a correction of about 5% last week, the VN-Index has recovered to 1,815.66 points. Future movements are expected to be significantly influenced by domestic capital inflows and corporate profit forecasts, with inflation, interest rates, and exchange rate fluctuations being key factors.
Business impactJapanese companies need to closely monitor the VN-Index, particularly being sensitive to movements in the domestic market regarding fundraising and investment strategies. An improvement in corporate profit forecasts could lead to increased investment opportunities.

Key pointsOn September 21, 2026, Vietnam's stock market was officially upgraded to 'emerging market' status according to FTSE Russell's assessment, marking a significant milestone after nearly 30 years of development. This upgrade is expected to establish Vietnam as one of the most active markets in ASEAN, attracting interest from foreign investors.
Business impactJapanese companies have the opportunity to leverage the growth of the Vietnamese market and reassess their investment strategies. In particular, it is important to reevaluate risk management and fundraising strategies in light of the increased transparency in the capital market.

Key pointsAs the transition of supply chains progresses, Vietnam is welcoming new investment opportunities. However, domestic companies need to focus on R&D, technological innovation, and human resource development to move beyond being mere subcontractors. Currently, there are over 30,000 foreign-invested enterprises in Vietnam, and domestic companies are required to strengthen their roles within this context.
Business impactJapanese companies need to leverage Vietnam's tax incentives and invest in R&D and technological innovation to enhance their competitiveness within the supply chain. Active efforts are particularly important as there is a demand for improved technological capabilities.

Key pointsAs the global supply chain transitions, Vietnam has the opportunity to enhance its position in the international manufacturing and trade landscape. However, as long as companies remain in low-value-added processes, this opportunity will not drive growth. By August 2026, the total trade volume is expected to reach approximately $770 billion, a 21% increase year-on-year, but the participation rate of domestic companies in the supply chain is declining. This necessitates companies to strengthen their ability to provide higher value-added offerings.
Business impactThis situation presents new business opportunities for Japanese companies as well. In particular, there is a need to reassess roles within the supply chain and develop products or services that offer higher value-added features.

Key pointsOn September 18, renowned American investor Warren Buffett stepped down as chairman of Berkshire Hathaway. This departure serves as a reminder of the importance of long-term investment, particularly in relation to the growth of the Vietnamese economy and investment strategies in emerging market equities. Buffett's investment philosophy emphasizes intrinsic value and an approach that is not swayed by short-term market fluctuations, which is influencing Vietnam's younger investor demographic.
Business impactJapanese companies should reference Buffett's long-term investment philosophy when making investment decisions in the Vietnamese market, particularly focusing on companies in finance, consumer goods, and infrastructure. Maintaining a long-term perspective will help avoid missing investment opportunities in companies with stable revenue bases.

Key pointsMajor central banks have begun to lower interest rates, changing the trend in interest rates. This shift may affect the funding environment and stock market in Vietnam. The actions of central banks, particularly the U.S. Federal Reserve, are being closely watched, with a focus on the pressure on the Vietnamese dong and the behavior of foreign investors. Consequently, there are concerns about the impact on the VN-Index.
Business impactFor Japanese companies, lower interest rates mean reduced funding costs, making it a crucial factor when considering additional investments in Vietnam. Particularly, the manufacturing and service sectors need to monitor this trend and reassess their investment strategies.

Key pointsThe Ministry of Science and Technology of Vietnam has sent a document to the Ministry of Industry and Trade requesting that EVN (Vietnam Electricity) standardize electricity rates for data centers. Electricity costs account for over 50% of the operational expenses of data centers, and in Ho Chi Minh City, businesses are burdened by commercial electricity rates. The Ministry is calling for the application of production electricity rates nationwide to ensure stable power supply, which is expected to stabilize data center operations and contribute to economic development.
Business impactJapanese companies need to be cautious of fluctuations in electricity rates as the operational costs of data centers rise. In particular, businesses based in Ho Chi Minh City must implement measures to ensure the stability of their power supply.