Impact of Rising Oil Prices on Vietnam's Economy

Key pointsRising oil prices due to the US-Iran situation are raising concerns about their impact on Vietnam's economy, particularly regarding increased energy costs affecting investment decisions. The rise in oil prices directly influences prices and cost structures, heightening investor caution.
Business impactFor Japanese companies, higher oil prices may lead to increased manufacturing and logistics costs, necessitating a review of supply chains. It is essential to monitor energy cost trends.

Key pointsVingroup has paid 26.36 trillion VND (approximately 1.02 billion USD) in land use fees for the mega urban development project called Hạ Long Xanh. This project has a total investment of approximately 456 trillion VND and is expected to accommodate 380,000 residents.
Business impactJapanese companies need to monitor regional trends to seize business opportunities related to Vingroup's project.

Key pointsThe Vietnamese tax authorities have announced 10 tax number statuses that taxpayers should be aware of. This includes whether the tax number is valid, business activity suspension, changes in tax offices, and more. Taxpayers need to understand these statuses and take appropriate actions.
Business impactJapanese companies should regularly check the status of their tax numbers in Vietnam and establish management systems to avoid legal risks.

Key pointsSCIC will auction 79,228,000 shares of Seaprodex starting at a price of 8,509 billion VND. Seaprodex manages valuable land located in central Ho Chi Minh City (2-4-6 Đồng Khởi), which currently cannot proceed with projects due to the lack of a land use rights certificate. Seaprodex also owns many other properties, with projected sales of 435 billion VND in the first half of 2026, a 29% increase compared to the same period last year.
Business impactFor Japanese companies, the auction of Seaprodex shares is crucial for understanding trends in Vietnam's real estate market, particularly for those involved in urban development and real estate investment. The land use rights issue may impact future project progress, necessitating caution from relevant legal departments.

Key pointsThe decline in global gold prices, influenced by expectations of interest rate hikes by the Federal Reserve, may affect gold demand and investment flows in Vietnam. Gold constitutes a significant portion of household assets in Vietnam, and its price fluctuations directly impact consumer sentiment and capital movement. Particularly, a strengthening dollar could lead to changes in investment flows into Vietnam.
Business impactFor Japanese companies, falling gold prices could affect material procurement costs and local currency revenues. It is necessary to reassess the proportion of dollar-denominated transactions considering exchange rate fluctuation risks. When considering investments, it is important to continuously monitor the three indicators of interest rates, exchange rates, and gold prices.

Key pointsA subsidiary of Petrovietnam in Vietnam has completed four offshore substations for the Baltica 2 project off the coast of Poland and has begun their transportation. These substations are a crucial component of renewable energy, with the project's total design output reaching 1,500 MW. The project is scheduled to commence commercial operations in the fourth quarter of 2027.
Business impactThis project demonstrates the international competitiveness of Vietnam's energy industry, highlighting the need for Japanese companies to consider business opportunities related to renewable energy in the Vietnamese market.

Key pointsHo Chi Minh City has announced a decision regarding the approval and coordination of positions within public agencies. This allows heads of each agency to have the authority to approve positions within their respective organizations. Additionally, new policies concerning housing supply are being considered, particularly the development of affordable rental housing. The city aims to collect and manage data on the housing market to formulate appropriate policies.
Business impactThis new framework for position approval may impact Japanese companies in terms of human resource and labor management. Companies that need to collaborate with public agencies will be required to understand the position approval process and respond appropriately.

Key pointsVietnam and the European Free Trade Association (EFTA) have officially concluded a Free Trade Agreement (FTA) after 14 years of negotiations. This agreement facilitates easier access for Vietnamese seafood to the European market, particularly in high purchasing power markets. Seafood exports are expected to increase by 12.8% in the first half of 2026.
Business impactThis FTA is a significant factor for Japanese companies to expand seafood export opportunities. It is essential to focus on quality management of products, as higher quality standards are required.