US Company Seeks to Build EV Production and Recycling Ecosystem in Vietnam

Key pointsR3 Lithium CEO Lynn Austin has recognized the growth of Vietnam's electric vehicle market and expressed interest in establishing a production and recycling ecosystem for electric vehicles. He indicated a willingness to explore partnership opportunities as Vietnam aims for net zero by 2050.
Business impactJapanese companies should pay attention to the growth of Vietnam's electric vehicle market and seek new business opportunities through collaboration with R3 Lithium. Investment in electric vehicle-related technologies and recycling of resources is particularly important.

Key pointsBy 2036, it is projected that approximately 20% of Vietnam's population will be aged 60 and over, which is expected to have long-term impacts on the insurance and financial markets. With structural changes in the economy, it is necessary to consider aging risks in investment decisions. The insurance industry, in particular, should expedite the development of products and services for the elderly.
Business impactJapanese companies need to reassess their product offerings and marketing strategies in preparation for the increasing demand for elderly services in the Vietnamese market.

Key pointsHo Chi Minh City is proposing regulations to cut electricity and water supply to facilities that violate construction, land, fire safety, and environmental regulations. This proposal is based on the Urban Development Law set to take effect in 2026 and will apply if there is non-compliance with corrective demands from administrative agencies, particularly for serious violations of fire safety and environmental protection laws. This is expected to facilitate the rapid identification and resolution of illegal constructions.
Business impactIf this regulation is enacted, Japanese companies will need to strengthen compliance in their construction projects. There will be a heightened need for awareness regarding construction permits and environmental regulations to prevent violations.

Key pointsVingroup plans to hold a meeting on October 16, 2026, to increase the ratio of domestic procurement. This is a significant move directly linked to strengthening Vietnam's supporting industries and its localization strategy, with a focus on discovering domestic suppliers and increasing the localization rate of components. Specific localization rate targets have not yet been disclosed.
Business impactThis initiative may present business opportunities for Japanese companies entering the Vietnamese market. In particular, Japanese suppliers aiming to collaborate with Vingroup are expected to contribute to strengthening the domestic supply chain.

Key pointsAs of mid-September 2026, there were 4,685 registered stalled projects nationwide, with 3,407 (72.7%) resolved. In Ho Chi Minh City, 650 projects have overcome legal obstacles and are showing progress. This is expected to positively impact the city's real estate market, with 37 real estate projects meeting funding conditions and an anticipated supply of 27,374 housing units. This is expected to facilitate resource mobilization towards achieving GDP growth targets.
Business impactFor Japanese companies, the resolution of projects in Ho Chi Minh City signifies revitalization of the real estate market, leading to increased investment opportunities. Particularly, real estate-related sectors need to closely monitor future market trends and develop appropriate strategies.

Key pointsDeputy Prime Minister Ho Quoc Dung has outlined a plan to develop Vietnam's port system into a modern and environmentally friendly logistics ecosystem, with a focus on major ports such as Lach Huyen in the north and Cat Lai in the south. The logistics industry has been growing at an average rate of 14-15% per year, accounting for about 10% of GDP, but faces challenges such as high logistics costs and transportation constraints. Infrastructure development and legal system improvements are needed to address these issues.
Business impactJapanese companies should pay attention to the development of Vietnam's logistics infrastructure and identify future investment opportunities, particularly in environmentally friendly logistics strategies.

Key pointsIn Ho Chi Minh City, exports increased by 7.82% over eight months in 2026, but logistics costs and international standards are putting additional pressure on businesses. According to the city's Department of Industry and Trade, the total import-export value reached $138 billion, marking a 9.9% increase year-on-year. However, high logistics costs and new regulations are noted to be diminishing the competitiveness of companies, particularly small and medium-sized enterprises that struggle to adapt due to limited resources.
Business impactJapanese companies need to pay attention to changes in logistics costs and regulations in Ho Chi Minh City and reassess their strategies for cost reduction and efficiency, with a particular emphasis on optimizing supply chains.

Key pointsVingroup will hold a meeting on October 16 in Hanoi to seek domestic partners and increase the local production ratio. In particular, VinFast needs to expand its network of domestic suppliers for automobile and motorcycle production.
Business impactJapanese companies should explore manufacturing and parts supply opportunities through collaboration with Vingroup, particularly focusing on meeting quality standards.