Foreign Firms Returning to China Require Reevaluation of Vietnam Investment Strategy

Key pointsThe VN-Index in Vietnam's stock market has recovered to 1800 points, primarily driven by bank stocks. Foreign investors have shown a clear influx of funds into the financial sector, with 8 out of the top 10 net buying stocks being banks.
Business impactFor Japanese companies, the stability of the banking sector is a crucial indicator of funding costs and business environment stability, potentially positively influencing future capital investments and factory expansions.

Key pointsSome foreign companies are showing signs of returning to China after about a year of relocating production to Vietnam. This trend is attributed to the difficulty of replicating China's long-established parts procurement networks and skilled labor. Structural challenges have emerged in Vietnam's manufacturing attraction strategy, necessitating a reevaluation of future investment strategies.
Business impactFor Japanese companies, a comprehensive assessment considering the maturity of parts procurement networks and logistics infrastructure is essential. Companies with manufacturing bases in Vietnam should consider reviewing their supply chains.

Key pointsThe Department of Agriculture and Rural Development of Ho Chi Minh City has sent a document to relevant agencies requesting opinions on the feasibility study report regarding compensation, support, and resettlement for Metro Line 6 (Tan Son Nhat - Phu Huu). The total investment for this project exceeds 26.33 trillion VND and is scheduled for implementation from 2026 to 2027. Approximately 2,501 households will be affected, with 2,256 households needing to relocate completely. Metro Line 6 plays a crucial role as part of Ho Chi Minh City's urban railway loop.
Business impactThis project may affect Japanese companies in terms of land acquisition and workforce relocation. Special attention is required for legal procedures related to compensation and resettlement.

Key pointsOn September 14, 2026, the Vietnam-Austria Investment Cooperation Forum was held in Vienna, attended by financial institutions and companies from both countries. The forum aims to promote high-quality investment in Vietnam and enhance economic cooperation between the two nations.
Business impactJapanese companies can gain opportunities to enhance their competitiveness in the Vietnamese market through collaboration with Austrian firms. It is particularly important to seek strategic partnerships to promote the inflow of technology and capital.

Key pointsOn September 15, 2026, Deputy Minister Vo Van Hung of the Ministry of Agriculture and Rural Development confirmed the progress of Binh Duong Province's measures against IUU (Illegal, Unreported, and Unregulated) fishing. The province has achieved 15 out of 16 goals, with 98.35% of fishing vessels holding the appropriate permits. Monitoring systems have also been strengthened, with no violations reported.
Business impactJapanese companies need to enhance their efforts to secure sustainable fishing resources in light of the strengthened fisheries management in Binh Duong Province. In particular, increasing supply chain transparency is essential.

Key pointsOn September 15, 2026, the Vietnamese Embassy in Seoul, in collaboration with the Industrial Bank of Korea (IBK) and Viglacera Corporation, held an investment promotion event focusing on manufacturing, energy, electronics, and semiconductors. Approximately 100 investors from South Korean SMEs participated, expressing their intention to create long-term value with Vietnam. Ambassador Vu Ho encouraged South Korean companies to view Vietnam as a strategic production base.
Business impactJapanese companies need to strengthen collaboration with South Korean firms and focus on technology transfer and human resource development to enhance their competitiveness in the Vietnamese market. It is particularly important to explore new business opportunities through joint projects in the manufacturing and electronics sectors.

Key pointsOn September 15, 2026, Vo Tan Duc, Deputy Secretary of Dong Nai Province, instructed the prioritization of resources for the critical transportation project connecting to Long Thanh Airport, emphasizing the need for expedited land clearance.
Business impactThe progress of this project may create new business opportunities for Japanese companies, as improvements in transportation infrastructure will directly impact logistics and supply chains, warranting close attention.

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

Key pointsホーチミン市は、メトロ6号線（タンソンニャット-フー・フー）に関する補償、支援、再定住のために、26兆ドンを支出する計画を発表しました。このプロジェクトは、タンソンニャット空港とロングタン空港を結ぶ重要なインフラであり、2026年に着工し、2030年までに完成する予定です。
Business impactこのプロジェクトは、交通インフラの整備に寄与し、日系企業にとっても物流や移動の効率化が期待されます。特に、建設業や関連サービスに関わる企業は注目すべきです。