Minister Luong Tam Quan Meets Mastercard Executive

Key pointsOn September 14, 2026, Minister Luong Tam Quan met with Mastercard Vice President John Mead Huntsman Jr., expressing hopes for the company to bridge the public and private sectors in Vietnam. The minister emphasized Mastercard's crucial role in digitalization and cybersecurity, indicating a desire to promote long-term cooperation with international firms. Mastercard is projected to record approximately 32.8 trillion yen in sales by 2025, with a current market capitalization of about 500 trillion yen.
Business impactThis meeting suggests new business opportunities for Japanese companies in advancing digitalization and enhancing cybersecurity. In particular, sectors such as financial services and IT should explore new market opportunities through collaboration with Mastercard.

Key pointsThe logistics industry is rapidly changing due to the explosive growth of e-commerce and multi-channel retail. Logistics networks need to be reorganized based on product distribution, connecting production areas with consumption areas. It is particularly important for each stage to function in coordination to enhance logistics efficiency.
Business impactJapanese companies need to closely monitor changes in logistics within the Vietnamese market and optimize their supply chains. With the expansion of e-commerce, there is a need to improve last-mile delivery efficiency, necessitating a review of logistics strategies.

Key pointsIt has been revealed that drivers working for ride-hailing apps in Vietnam are forced to work long hours of 13 to 15 hours a day. The absence of a holiday system and social security, along with a penalty system for declining ride requests, drives drivers into long working hours. This situation highlights vulnerabilities in the labor structure of the Vietnamese economy and is an important issue for potential investors.
Business impactFor Japanese companies, ride-hailing and logistics services are closely related to daily operations, and labor environment issues may impact service quality and supply chain stability. It is essential to pay attention to this issue in supply chain management.

Key pointsVietnam is deepening its integration into the global economy by leveraging 17 free trade agreements (FTAs). There is an improvement in manufacturing capabilities, corporate vitality, and access to international markets. By 2026, electronics are expected to become the main export, with total exports projected to exceed $475 billion.
Business impactJapanese companies need to capitalize on the growth of Vietnam's manufacturing sector to strengthen their supply chains. It is particularly important to reassess strategies to meet increasing demands for environmental standards and traceability.

Key pointsThe Vietnam Tax Consulting Association has proposed applying a deduction of 10 trillion dong in tax calculations. Currently, businesses with revenue below 10 trillion dong are exempt from both personal income tax and value-added tax (VAT), but those exceeding this threshold are subject to VAT. This proposal would require businesses to collect VAT from the outset, leading to potential tax liabilities on past revenues once they surpass the 10 trillion dong mark, raising concerns about increased economic burdens. The Ministry of Finance has indicated the need for consistency in VAT application and has shown a cautious stance towards the proposal.
Business impactIf implemented, this proposal could complicate tax calculations and increase financial burdens, particularly for small businesses. Japanese companies operating in the Vietnamese market may need to reassess their tax strategies.

Key pointsVietnam has amended its land expropriation compensation system, mandating the calculation of income loss. This institutionalizes support for the livelihoods of farmers and small businesses, marking a significant change for the Vietnamese economy, which continues to expropriate agricultural and industrial land.
Business impactThe transparency of the land expropriation system may enhance predictability in land acquisition, but the increased compensation could raise initial land acquisition costs. Japanese companies need to monitor this change and reflect it in their business plans.

Key pointsA proposal has emerged in Venezuela to abolish its currency, the bolivar, and adopt the dollar as legal tender. This move represents a case of a country suffering from hyperinflation relinquishing its currency sovereignty, providing insights for Vietnam's monetary policy. The Vietnamese dong continues to decline, reaching historically low levels against the dollar.
Business impactJapanese companies entering Vietnam may find that the depreciation of the dong lowers local production costs, but it also leads to a reduction in profits and dividend remittances when converted to yen. Establishing a system to hedge against exchange rate risks becomes increasingly important.

Key pointsThe conflict between US Fed Chairman Powell and President Trump has reignited, increasing speculation about rate cuts. This situation is drawing attention to its potential effects on the Vietnamese economy and investment environment, particularly regarding foreign investor inflows into the VN-Index.
Business impactJapanese companies need to be cautious as US interest rate trends can affect currency costs and funding environments. A depreciation of the dong could benefit export-oriented companies, while increasing costs for those with local currency-denominated debts.