BlackRock and Vanguard Manage Trillions Ahead of Vietnam Market Upgrade

Key pointsMajor international investment firms such as BlackRock and Vanguard will participate in a meeting on September 18 regarding the upgrade of the Vietnam market by FTSE Russell. The Vietnamese securities market is set to be upgraded to emerging market status on September 21, which is expected to attract international capital inflows. The meeting will also discuss improvements to the legal framework and trading infrastructure.
Business impactJapanese companies need to closely monitor the trends of international investment institutions and maximize opportunities for capital inflows. Particularly, efforts to maintain market standards post-upgrade will be essential, making strategies aimed at enhancing transparency and liquidity crucial.

Key pointsTensions in the Middle East are impacting the energy market, creating new export opportunities for Vietnamese fertilizer manufacturers. Mirae Asset, a South Korean securities firm, analyzes that fluctuations in natural gas and crude oil prices, essential for fertilizer production, could affect cost competitiveness, allowing Vietnamese companies to expand their share in international markets. While specific production costs have not been disclosed, attention is focused on companies with competitive cost structures.
Business impactFor Japanese companies, fluctuations in energy prices may indirectly affect dealings with Vietnamese fertilizer manufacturers or local production bases as part of their supply chain. Particularly, trends in the fertilizer sector will be an important factor in investment decisions.

Key pointsAmong the 27 stocks included in FTSE All-Cap, HPG is held by 69 investment funds, making it the most supported stock. FPT follows with 62 funds holding it, and it has the highest ownership ratio at 5.44%. This indicates a growing international interest in Vietnamese stocks.
Business impactJapanese companies should closely monitor the trends of Vietnamese stocks in FTSE All-Cap, particularly considering investment opportunities in popular stocks like HPG and FPT. Understanding the trends of international investment funds will enable strategic investment decisions.

Key pointsSamsung is expanding its investment in Vietnam, aiming to increase manufacturing scale while also focusing on industrial support, talent development, and innovation promotion. By the end of 2025, the total investment in Vietnam is expected to exceed $24 billion, with the company operating six manufacturing plants and one research and development center. Samsung is strengthening collaboration with domestic companies and contributing to Vietnam's economic growth through industrial support. Additionally, it is launching educational programs for youth to enhance the development of technicians.
Business impactSamsung's expanded investment presents new business opportunities for Japanese companies. In particular, initiatives related to supply chain enhancement and talent development will serve as important references for related enterprises. Future collaboration with Samsung is expected to enhance competitiveness.

Key pointsTP.HCM and the Southeast region are experiencing an increasing need for large-scale projects. In response, urban development laws have been revised to allow local governments to jointly fund and invest in public works. The enhancement of transportation infrastructure is particularly emphasized, and new mechanisms are sought to strengthen inter-regional collaboration, aiming for tangible results by 2030.
Business impactFor Japanese companies, strengthening inter-regional collaboration may create new business opportunities. It is crucial to deepen partnerships with local governments, especially in infrastructure investment and logistics-related businesses. Companies need to pay attention to upcoming regional development plans and formulate appropriate strategies.

Key pointsDisruptions in oil supply from Saudi Arabia have led to record-high oil prices in China. This situation may impact Vietnam's economy, which relies heavily on energy imports, raising concerns about increasing energy costs.
Business impactFor Japanese companies, rising oil prices could lead to increased production and logistics costs. Particularly in the manufacturing supply chain, higher fuel costs may pressure profit margins, necessitating caution.

Key pointsVietnam's textile industry may be affected by an increase in the export tax rate to 12.5% in the US starting in the second half of 2026. Although many textile companies recorded double-digit growth in the second quarter, concerns arise over Vietnam's competitiveness due to competing countries having a tax rate of 10%. The tax rate difference is expected to significantly impact Vietnam's textile sector, which heavily relies on the US market.
Business impactJapanese companies need to consider the increased costs associated with the tax rate change and review their pricing strategies and supply chains. Cost management will be crucial, especially as price competition intensifies with rival countries.

Key pointsMBS Securities has analyzed that Vietnam's economy may face heightened inflation pressure in the remaining four months until the end of 2025. Factors such as rising oil prices, increased construction material costs, currency fluctuations, and expanding credit growth rates are expected to influence prices, raising concerns about upward pressure on the Consumer Price Index (CPI) and potential impacts on investment decisions.
Business impactFor Japanese companies, rising construction material and fuel costs could contribute to increased manufacturing and logistics expenses. Companies building supply chains within Vietnam need to be vigilant about fluctuations in raw material procurement costs.