Closure of Tac Ke Iron Mine Marks Turning Point for Vietnam's Economy

Key pointsThe Tac Ke iron mine in Ha Tinh Province, Central Vietnam, has been closed, and land handover for new projects is underway. This closure is drawing attention as a reassessment of resource policy and a new focus on regional development. The Tac Ke iron mine had seen stagnant development for many years, but this decision may create new investment opportunities.
Business impactFor Japanese companies, the procurement environment for steel raw materials may change, and if new projects progress in the construction industry, a reassessment of supply chain strategies will be necessary.

Key pointsTasco Auto has acquired shares in VinFast Motors, which assembles EV trucks and vans. This move aims to expand from imported vehicle sales to domestic assembly and electrification, marking an important step in Vietnam's electrification strategy. Specific acquisition ratios and amounts have not yet been disclosed, but it is seen as part of industry restructuring amid the expansion of the commercial EV market.
Business impactFor Japanese companies, Tasco Auto's actions may prompt a restructuring in the commercial EV sector, necessitating a reevaluation of logistics and supply chain strategies. In particular, automotive companies like Toyota and Isuzu will need to explore collaboration opportunities with local firms.

Key pointsFTSE Russell has proposed to Vietnamese authorities the expansion of liquidity for overseas derivatives linked to the FTSE Vietnam Index. This proposal aims to facilitate foreign investment inflows in anticipation of the FTSE's upgrade to the Secondary Emerging Market scheduled for September 2026. While specific institutional designs and implementation timelines are yet to be determined, an increase in liquidity is expected.
Business impactIf this proposal is realized, Japanese companies may have broader options for fundraising and could choose from a more diverse range of investment methods. In particular, the increase in risk hedging options could improve the investment environment.

Key pointsShinhan Bank Vietnam has appointed Ryu Jae-woon as the new CEO. He brings over 25 years of financial experience and aims to enhance the role of foreign banks in the Vietnamese market. This appointment is seen as a move to strengthen the financial sector that supports Vietnam's economic growth.
Business impactThe new CEO's appointment signifies an expansion of options for Japanese companies in terms of fundraising and financial services. Particularly, the enhancement of financial services for small and medium-sized enterprises could improve the efficiency of fundraising in business operations.

Key pointsJapanese retail company Saeki Selva Holdings has announced plans to enter the Vietnamese market by training Vietnamese employees in Japan. Trainees will learn basic operations for over three years in Japan and acquire skills in store management and product development upon returning home. Saeki plans to open approximately 100 stores in Vietnam over the next three years.
Business impactThis strategy presents an opportunity for Japanese companies to enhance their competitiveness in the Vietnamese market. In particular, developing local talent is expected to improve store operations and responsiveness to customer needs.

Key pointsUS and Chinese trade and financial authorities will discuss AI, tariffs, and rare earths this weekend, which may impact Vietnam's economy and investment environment. Vietnam plays a crucial role as an intermediary hub in the US-China supply chain.
Business impactJapanese companies need to closely monitor the outcomes of the US-China trade talks and may need to revise their supply chains and adjust investment strategies. Changes in tariffs and export regulations will have direct effects, requiring a sensitive response.

Japanese business summary. Read the original source for the source language.

Key pointsTân Hiệp Phátの創業者トラン・クイ・タン氏は、最近新たに不動産会社を設立し、800ヘクタールの工業団地の開発を提案しています。これにより、家族は不動産市場に再び注目し、特に工業用地の開発に焦点を当てています。
Business impactこの動きは、ベトナムの不動産市場における新たな競争を示唆しており、日系企業は市場の動向を注視し、戦略を見直す必要があります。

Key pointsIn the second quarter of 2025, the net profit of listed companies in Vietnam increased by 48% year-on-year. As a result, following the market upgrade by FTSE, foreign investment inflows could reach between $1.5 billion and $2 billion. The expansion of public investment and the recovery of domestic demand are supporting the improvement in corporate earnings.
Business impactFor Japanese companies, the increase in profits among listed firms indicates investment opportunities, particularly in public investment-related projects. This serves as a crucial indicator when considering supply chain restructuring and the expansion of local production.

Key pointsConcerns are rising regarding the impact of the Federal Reserve Board's (FRB) anticipated rate hikes on Vietnam's economy and foreign exchange market. An increase in FRB rates may enhance the appeal of the US dollar, potentially leading to capital outflows from emerging market currencies. This could increase downward pressure on the Vietnamese dong, raising import costs and the burden of external debt.
Business impactFor Japanese companies, the FRB's rate hike will affect the costs of importing raw materials and labor, necessitating a review of supply chain procurement costs. Additionally, there is a need to consider asset allocation in light of foreign exchange risks.