Impact of Fed Rate Hike on Vietnam Stock Market

Key pointsVietnam's textile industry has announced a goal of approximately $48 billion in exports by 2026. The industry aims to improve the quality of growth and optimize manufacturing costs while flexibly responding to market changes, thereby enhancing its competitiveness in the international market.
Business impactJapanese companies need to consider reviewing their supply chains and exploring new business partners in response to the growth of Vietnam's textile industry. Efforts towards quality improvement and cost reduction will be particularly important.

Key pointsPhu Quoc Construction Company was fined for issuing bonds despite having a debt-to-equity (D/E) ratio exceeding 5 times. As of June 30, 2026, the D/E ratio is over 7 times, but it decreases to 4.4 times when excluding advance payments.
Business impactThis case indicates that monitoring of corporate financial health in Vietnam is being strengthened. Japanese companies need to rigorously manage financial ratios and enhance regulatory compliance.

Key pointsThe Federal Reserve's announcement of a rate hike is expected to have a limited impact on the Vietnam stock market. The market had already priced in this decision, particularly influenced by the market upgrade event on September 21. Historical data shows that the VN-Index tends to decline before the Fed's rate hike announcement but stabilizes afterward. Experts indicate that future market trends will depend on domestic interest rates and currency movements.
Business impactJapanese companies are unlikely to be directly affected by the Fed's policy changes, but they should pay attention to domestic interest rate trends. This is particularly important as it may impact funding and investment plans, so the finance department should closely monitor future developments.

Key pointsSince Siam Brothers Vietnam went public in 2016, there have been no new listings of FDI companies on Vietnam's securities market. FDI companies account for only about 0.15% of total capital, facing barriers such as obligations tied to government incentives and the demand for high transparency in management. The decision for FDI companies to go public depends on their growth strategies and market approaches.
Business impactJapanese companies need to understand the reasons behind the lack of FDI company listings and reassess their investment strategies. It is particularly important to strengthen collaboration with companies aiming for public listing.

Key pointsThomas Nguyen from SSI Securities stated that Vietnam could see up to $10 billion in investment inflows due to its upgrade to the FTSE emerging markets. The weight of Vietnam in the FTSE Emerging All Cap Index is expected to rise to approximately 0.49-0.50%, increasing the presence of foreign investors.
Business impactFor Japanese companies, the FTSE upgrade may enhance market transparency and activate trading, potentially improving the fundraising environment. There is an expectation of broader foreign investor participation, particularly in the manufacturing and service sectors.

Key pointsFTSE Russell has expressed support for Vietnam's capital market, with Vanguard funds set to start incorporating Vietnamese stocks from September 21. This is anticipated to lead to capital inflows as Vietnam is upgraded to the FTSE secondary emerging market. The upgrade is expected to enhance Vietnam's international economic standing and attract passive investment. This could increase foreign investor interest and promote investment in the Vietnamese market.
Business impactFor Japanese companies, the upgrade of the capital market is likely to improve the stability of the business environment. Many Japanese firms are building supply chains in Vietnam, particularly in manufacturing, and an increase in investment opportunities is expected. Improved transparency in the securities market may facilitate investments in Vietnamese stocks by Japanese institutional and individual investors.

Key pointsThe 'Urban Development Law' effective from October 1, 2026, will open new development spaces in Ho Chi Minh City. SATRA intends to strengthen its efforts to promote economic growth and drive innovation in response to this legal change.
Business impactThis legal amendment could significantly impact SATRA's business strategy, and Japanese companies need to closely monitor regulatory trends to identify new business opportunities.

Key pointsA new development space will open in Ho Chi Minh City due to the Urban Development Law No. 18, effective from October 1, 2026. The Saigon Trading Corporation (SATRA) is required to reassess its investment, management, and resource utilization methods, alongside expanding its authority and preferential policies. This is expected to enable SATRA to play a more strategic role.
Business impactFor Japanese companies, collaborating with SATRA and formulating new investment strategies will be crucial to leverage the new development opportunities in Ho Chi Minh City. It is particularly important to consider participation in urban development-related projects.