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This report curates the most important Vietnam-related economic news from the second half of May 2026, selected specifically for small and mid-sized foreign businesses and investors who are actively monitoring or considering entry into the Vietnamese market. Note: The blockquote sections at the end of each topic represent KBC-LINK's analysis and commentary based on publicly available information. Late May Overview Vietnam's economy — described by the World Bank as "solid" — is sustaining macro-level growth while entering a significant period of structural transformation. In the technology sector, the government has codified its "10 Strategic Technology Groups" covering AI and semiconductors into law, while in agriculture, the country's largest integrated agri-food corporation has launched an AI-driven transformation of its entire value chain. The tourism and hotel industry, which recorded the fastest recovery in the region in Q1, is seeing an acceleration of premium resort investment by global operators. At the same time, the construction sector — buoyed by record public investment backlogs — is grappling with surging material costs, while manufacturing continues to face supply-side constraints: persistent dependence on Chinese intermediate goods and an underdeveloped local supplier base that complicate the narrative of "China decoupling." Climate risk is also becoming more tangible, with extreme heat triggering widespread forest fire alerts across the country. For companies operating in or considering Vietnam, the operating environment calls for strategies that capture robust demand while building in cost discipline, supply chain optimization, and climate and disaster risk management. 📌 Also recommended: Vietnam Economic Highlights — Early May 2026 Vietnam Industry Watch: Key Sectors to Watch 1．Vietnam Economy (General) World Bank Affirms Vietnam's 2026 Outlook as "Solid," Calls for Sustained Structural Reform The World Bank released its latest Vietnam Economic Update, affirming that Vietnam entered 2026 in the strongest position of any economy in ASEAN, having recorded GDP growth of 8% in 2025 — the fastest in the region. Growth is expected to moderate to a still-high 6.8% in 2026 as Middle East oil price shocks weigh on global demand and domestic activity. (The World Bank's concurrent East Asia and Pacific regional report projects a slightly more conservative 6.3% for Vietnam.) The primary growth drivers remain strong exports and investment. The government's USD 320 billion public infrastructure investment plan and ongoing administrative rationalization are supporting private consumption and business activity. Inflation is projected to average just above 4% in 2026. The report identifies deepening linkages between foreign-invested and domestic firms, and improving productivity, as the critical medium-term challenges for sustaining momentum. Source: Vietnam News, May 15, 2026 https://vietnamnews.vn/economy/1781434/viet-nam-s-economic-outlook-in-2026-remains-solid-despite-global-headwinds-wb.html Vietnam's resilient macroeconomic fundamentals position it as a comparatively lower-risk investment destination in the current global environment. Sectors that stand to benefit directly from the government's infrastructure investment push — logistics, construction, engineering services — remain strategically attractive. That said, the above-4% inflation trajectory signals rising local operating costs that should be factored into business planning from the outset. 2．Construction and Infrastructure Vietnam Unveils Timeline for USD 67.3 Billion North–South High-Speed Railway; Groundbreaking Targeted for Q4 2026–Q4 2028 The Thang Long Project Management Board under the Ministry of Construction has released the implementation roadmap for Vietnam's landmark North–South High-Speed Railway project. The line will span approximately 1,541 km, connecting Ngoc Hoi Station in Hanoi to Thu Thiem Station in Ho Chi Minh City. The railway will be built as an entirely new double-track electrified line with a standard gauge of 1,435 mm, designed for speeds of up to 350 km/h, and will include 23 passenger stations and 5 freight stations with a fully synchronized rolling stock and equipment system. Under the implementation schedule, selection of feasibility study (FS) consultants will begin in June 2026, with an interim FS report targeted for completion by June 2027. Following FS approval and tendering, groundbreaking — including land clearance — is scheduled between Q4 2026 and Q4 2028, with substantial infrastructure completion targeted by 2035. Deputy Minister of Construction Bui Xuan Dung emphasized that engaging international consultants with advanced technological expertise and hands-on high-speed rail experience will be a decisive factor in the project's long-term quality and effectiveness. Source: VietNamNet, May 20, 2026 https://vietnamnet.vn/en/vietnam-unveils-timeline-for-67-billion-high-speed-railway-2517429.html This is Vietnam's largest infrastructure project in history, and it is now moving from policy to execution. The government's explicit call for "world-leading technology and international experience" opens a significant window for Japanese and other international engineering firms, design consultancies, and contractors with expertise in high-speed rail, TOD (transit-oriented development) urban planning, and ground improvement technology. The consultant selection process beginning in June 2026 is the immediate milestone to watch. 3．Manufacturing The Reality Behind "China Decoupling": Factory Relocation to Vietnam and the Deepening Complexity of Chinese-Dependent Supply Chains While the relocation of global manufacturing operations from China to Vietnam has become increasingly visible — with Samsung's smartphone factories in Thai Nguyen Province and major furniture manufacturers in Binh Phuoc Province shipping to Western markets — reporting from Singapore's Lianhe Zaobao highlights that complete decoupling from Chinese supply chains remains structurally difficult. Products shipped from Vietnamese factories to the US and Europe continue to rely heavily on Chinese-supplied intermediate goods: high-density circuit boards, camera modules, and battery cells. Vietnam's government is actively trying to move beyond a pure assembly role by developing local suppliers, but constraints in workforce skill levels, electricity supply stability, and physical infrastructure mean that absorbing the high-value upstream processes — R&D and core component manufacturing — remains a significant challenge. Marco Förster, ASEAN Regional Director at Dezan Shira & Associates, noted that Vietnam's proximity to China — the world's most complete industrial ecosystem — is precisely what makes it an ideal export hub, and that severing that connection would introduce unnecessary cost and complexity. Stephen Olson, Senior Fellow at Pacific Forum, offered a complementary view: what is occurring is not decoupling but supply chain restructuring, and the process is making supply chain structures increasingly opaque as companies work to obscure China's continued involvement. Source: Lianhe Zaobao via Record China, May 26, 2026 https://www.recordchina.co.jp/b977645-s43-c20-d0193.html For companies positioning Vietnam as a production or export base, a clear grand design for where critical components are sourced is not optional — it is foundational. The strategic logic is not to eliminate Chinese inputs but to understand and actively manage the structure: Vietnam's adjacency to China's industrial ecosystem is a feature, not a bug. The task is to optimize the balance between geopolitical risk exposure and procurement cost efficiency, and to build that structure with intentionality rather than by default. 4．Agriculture C.P. Vietnam and FPT Sign Strategic AI Partnership to Transform the Agri-Food Value Chain C.P. Vietnam Corporation, one of Vietnam's leading integrated agri-food enterprises and a subsidiary of Thailand's Charoen Pokphand Foods (CPF), has signed a strategic cooperation memorandum (MoU) with FPT Corporation, Vietnam's largest IT company, covering the period from 2026 to 2028. The partnership will explore and deploy AI and digital solutions across C.P. Vietnam's integrated Feed-Farm-Food value chain — spanning feed production, farming, and food processing — as well as its supply-chain networks. The scope of cooperation covers Smart Camera and AI Vision, Smart Manufacturing and Smart Supply Chain, Industrial IoT platforms, Agentic AI for Operational Intelligence, Food Safety and Traceability, and Smart Farm model development. In the pilot phase, both parties will establish Smart Farm models at selected C.P. Vietnam facilities, targeting approximately a 20% reduction in operational costs and 100% food safety traceability. The MoU was signed at the Thailand-Vietnam Business Forum 2026 in Bangkok on May 28, in the presence of Vietnam's Party General Secretary and State President To Lam and Thai Prime Minister Anutin Charnvirakul. Source: Vietnam Investment Review, May 29, 2026 https://vir.com.vn/cp-vietnam-enhances-ai-adoption-in-agri-food-chains-153672.html Demand for AI and IoT-driven smart agriculture solutions is now moving from aspiration to active implementation among Vietnam's largest operators. For companies with capabilities in agricultural drones, sensor technology, AI vision systems, data analytics, or smart farm management platforms, the opportunity to partner with top-tier local corporations on pilot programs and scaled deployment is now tangible. The C.P. Vietnam–FPT model signals the direction the broader industry is moving. 5．Technology & IT Government Codifies "10 Strategic Technology Groups" Including AI and Semiconductors; Incentive Framework Takes Effect July 1 The Vietnamese government has enacted a legal framework designating 10 Strategic Technology Groups and a catalog of prioritized high-technology products, effective July 1, 2026 (Prime Ministerial Decision No. 23/2026/QĐ-TTg, replacing Decision No. 1131/QĐ-TTg of June 2025). The framework covers artificial intelligence, semiconductor chips, 5G/5G-Advanced telecommunications equipment, cloud computing, quantum technologies, blockchain, and smart manufacturing platforms, among others. Specifically designated as national strategic products are Vietnamese-language large language models (LLMs), advanced data analytics software, automation platforms, and AI-enabled edge computing cameras. The Ministry of Science and Technology will lead implementation. Companies operating in these fields will be eligible for a comprehensive incentive package including tax preferences, financial support, and streamlined administrative procedures. Source: Vietnam Investment Review, May 6, 2026 (continuously reported through the period based on Prime Ministerial Decision No. 23/2026/QĐ-TTg) https://vir.com.vn/vietnam-announces-10-strategic-technology-groups-152062.html With the government's priority technology areas now codified in law, foreign companies — including Japanese firms — entering Vietnam in AI, cloud computing, or semiconductor design have a clearer pathway to access stronger incentives and infrastructure support than at any previous point. The key to unlocking these benefits is positioning your technology offering in explicit alignment with the designated strategic product categories. July 1 is the effective date; preparation should begin now. 6．Hotel & Tourism Vietnam Records Southeast Asia's Fastest Tourism Growth in Q1 2026; Global Hotel Chains Accelerate Investment According to the latest data from the Vietnam National Authority of Tourism (VNAT), Vietnam welcomed 6.76 million international visitors in Q1 2026 — a 12.4% increase year-on-year — achieving the fastest tourism growth rate in Southeast Asia for the period. China, South Korea, and Taiwan are the leading source markets driving demand. Against this backdrop of sustained growth, political stability, and improving infrastructure, global hotel chains are accelerating their investment commitments. Melia Hotels International and Hilton Hotels & Resorts are among the operators advancing development projects with local partners, focusing on major resort destinations including Phu Quoc, Vung Tau, and locations in the northern and central regions. The projects are predominantly positioned around wellness tourism — integrated resorts and luxury properties centered on health and rejuvenation. Source: VietNamNet, May 26, 2026 https://vietnamnet.vn/en/vietnam-emerges-as-southeast-asia-s-top-travel-hotspot-in-2026-2508513.html The market has entered a clear growth cycle, with demand accelerating in the premium and wellness-focused segments. With international hotel operators moving quickly into development mode, there is a significant B2B opportunity for companies with innovative amenity concepts, wellness equipment, facility solutions, or hospitality technology targeting the luxury segment. Suppliers and solution providers should be positioning themselves proactively with developers now entering the construction phase. 7．Fire Prevention & Climate Risk Extreme Heat and Drought Trigger Maximum-Level Forest Fire Alerts Across More Than 1,350 Communities Nationwid According to the Vietnam Forestry and Forest Protection Department, an extended period of abnormal heat and drought — linked to El Niño conditions — has resulted in maximum-level (Level 5 — Extremely Dangerous) forest fire alerts being issued across more than 1,350 communes nationwide as of mid-May, with Level 4 (Dangerous) alerts active in an additional 294 areas. Key forest areas under threat include Ca Mau Province in the south and Da Nang and Hai Phong in the center and north — all critical raw material bases for Vietnam's wood processing and furniture export industry, which generates approximately USD 14 billion in annual exports. Authorities have activated a four-on-site readiness protocol — covering personnel, equipment, logistics, and command — including 24-hour watchtower operations, reinforced firebreaks, deployment of mobile water pumps and fire hoses, and rapid response teams numbering in the hundreds. Source: VietnamPlus, May 29, 2026 https://en.vietnamplus.vn/vietnam-steps-up-forest-fire-prevention-efforts-amid-extreme-heat-post343572.vnp Large-scale climate-driven fire risk now poses a concrete and growing threat to Vietnam's timber and agricultural supply chains — two of the country's most strategically important export sectors. For companies with solutions in drone-based fire detection, remote sensing, real-time early warning systems, or smart disaster prevention technology, there is meaningful demand from both government agencies and large plantation operators. The scale of the challenge — over 1,350 communities on maximum alert — underscores the urgency and the market opportunity. KBC-LINK Editorial Perspective Taken together, this month's news tells a coherent story: Vietnam is deliberately upgrading its economic operating system — moving from a positioning built on low-cost assembly toward one anchored in advanced technology and sustainability. The government's codification of strategic technology priorities, the digitalization of the agri-food value chain by its largest operators, and the acceleration of premium tourism investment all point in the same direction: the expectations placed on foreign companies are shifting from volume to value. At the same time, the structural constraints are real. Supply chain dependence on China does not dissolve overnight. Skilled labor shortages do not resolve themselves. Climate risk is no longer a future concern — it is a present operational variable. Companies that will lead in the next phase of Vietnam's development are those that contribute to solving structural problems — through digitalization, green transformation, and supply chain resilience — not simply those that ride the wave of market expansion. The space for early movers who bring genuine capability is opening. KBC-LINK will continue to provide ground-level insight to help you navigate it. Edited & Summarized by: KBC-LINK Editorial Team (compiled with independent perspectives and on-the-ground insights).

"Selling One Book, Deeply and Intensely" In the age of Amazon, where every book ever published is just a click away, one tiny bookstore in Ginza sells only one title at a time — and draws visitors from around the world. Here's what this almost unbelievable strategy can teach us about the business. 画像はイメージです This week's theme: Morioka Shoten — The Bookstore That Sells Only One Book 1｜So, what exactly is this? Morioka Shoten is a highly unique bookstore in Ginza, Tokyo, that sells just one book per week. Rather than lining shelves with titles, the store simultaneously hosts an exhibition inspired by that single book. A photography book might be accompanied by a display of original prints; a cookbook might come with a talk event featuring the author. The world of the book is expressed as a three-dimensional experience in the space itself. Instead of "choosing from many," this is a place that offers the experience of "savoring one chosen book to the fullest." 2｜Why does this work now? Because it's the ultimate counterpoint to the era of endless choice and mass consumption — the world that Amazon represents. As information, options, and content multiply without limit, people are starting to feel exhausted. "More is better" has reached its limits. Into this environment, Morioka Shoten offers a refreshingly simple answer: just one. From a business perspective, "narrowing down" carries real economic logic. When the store takes on the burden of choosing, customers get to buy something even more valuable — the relief of not having to decide. It's essentially the same reason Netflix invests enormously in its recommendation engine. Curation itself has become the product — and Morioka Shoten proves it in a physical space. Authors and editors often stand in the store themselves, allowing visitors to receive the passion of the creators directly. This intense experience has gone viral on social media and in international media, drawing book lovers from across the world. 3｜How do Japan and Vietnam connect? 🇯🇵 Japan: A rich publishing culture and deep respect for craftsmanship underpin this market. The model of gathering authors, editors, and readers in one space — adding value through editorial curation — extends well beyond books. It can be applied to paintings, photography, music, and any "single work" worthy of being savored deeply. 🇻🇳 Vietnam (as a possibility)：As Vietnam's economy develops, a value shift is expected among younger generations — from owning things to seeking stories and experiences. Vietnam also has a deeply rooted café culture. Imagine a neighborhood café that dedicates itself to "this week's book," "this month's painting," or "this week's artist" — it could bring the Morioka Shoten concept to life in a far more accessible, everyday setting. Looking further ahead, boutique hotels competing on personality could offer guests an immersive experience around "this week's artist" or "this month's local food story" — becoming not just a place to sleep, but a cultural editor for the city they're in. 4｜What makes this business interesting? This is not simply retail. It's a community platform using books as its medium. ・Escaping price competition: Customers aren't paying just for a book as an object — they're paying for the memory and experience of being there. That takes them entirely out of the world of price comparison. ・Co-creation with creators: Publishers and authors now seek out Morioka Shoten specifically as a place they want their book sold, making it an extraordinarily powerful branding and promotional tool. ・The power of place: By weaving Ginza's historic location and atmosphere into the experience itself, the store creates value that is simply impossible to replicate online. 5｜What this business tells us What Morioka Shoten values is not efficiency or revenue maximization, but what might be called the "dignity of business" — a way of working where everyone involved ends up happier. In an age of information overload, deliberately choosing to focus on just one thing can attract deeper relationships and unexpected encounters. Morioka Shoten has proven this in one of the world's most competitive retail environments. Books, paintings, music, cafés, hotels. What Morioka Shoten has given us is not a retail format — it's a philosophy: that depth and discovery are born from the act of narrowing down. In an age where curation is value, this philosophy holds a universal lesson for every industry. As markets mature across Asia, businesses like this — small in scale but rich in love and philosophy — will become essential anchors of urban culture. Sources ・Morioka Shoten official website and various interview articles ・Morioka Shoten branding materials (Takram) ・Compiled by KBC-LINK editorial team based on SNS posts and publicly available information KBC-LINK Did You Know? The World Is Full of Fascinating Businesses. is updated weekly (planned). Next time, we dive into another unique business from around the world.

Vietnam Under the Tô Lâm Administration: Nationwide Governance Reforms, Cross-Sector Inspections, and What the Transition Period Means for Your Business Overview (Quick Summary) Vietnam is undergoing sweeping, large-scale reforms that extend far beyond any single industry. The impact is being felt across healthcare, construction, consumer goods, digital technology, and more. While these changes represent a significant step toward a fairer and more trustworthy market in the long run, the short term is bringing procedural delays and temporary operational disruptions. This report provides an overview of the situation, its effects across key sectors, and some perspectives to help navigate this period of transition. 1｜Background: A National-Scale Cleansing Across All Industries Under the leadership of General Secretary Tô Lâm, Vietnam is pursuing an unprecedented governance reform aimed at restoring national credibility and building a healthier market environment. Driven by goals of intellectual property protection, product safety assurance, and administrative transparency, this reform has expanded into a comprehensive nationwide inspection campaign and counterfeit elimination drive targeting all industries and sectors — from manufacturing and packaging to infrastructure, distribution, and digital services. As of 2026, the pace of regulatory enforcement has reached its highest level in recent history, with the government firmly committed to a policy of zero exceptions. 2｜Cross-Sector Impact: What Is Happening on the Ground Across every sector, this wave of governance reform is producing a shared pattern: long-term benefits through market cleansing, alongside short-term challenges from administrative slowdowns. Life Sciences & Food Sector (Packaging & Manufacturing Manufacturing and packaging facilities in the pharmaceutical, health food, and healthcare industries are now subject to extremely rigorous government inspections. Raw material traceability, hygiene standards, and compliance with quality frameworks such as GMP are being scrutinized closely. Production lines that fail to meet the required standards are facing temporary suspension orders, and new regulatory screenings are being applied in rapid succession. Fire Safety, Construction & Real Estate Sector (Equipment Licensing & Building Approvals) Some of the most pronounced administrative slowdowns are being observed in fire safety equipment and infrastructure, as well as in the construction and real estate sectors. The tightening of safety standards — including the enforcement of the revised Fire Safety Law — has made local authorities significantly more cautious in approving applications, out of concern over personal liability for any oversight. As a result, circulation licenses, building permits, and renewal procedures are experiencing delays of several months, causing broader project timelines to stall. Retail, Apparel & Consumer Goods Sector (Counterfeit Elimination) The government has made market "purification" a top priority, with customs authorities and the Market Surveillance Department intensifying nationwide unannounced inspections. Products of unclear origin and counterfeit goods — previously tolerated to varying degrees — are being systematically removed from commercial facilities and border points. For businesses that have consistently maintained compliance, this presents a meaningful opportunity as unfair low-price competition from non-compliant players is being eliminated. Technology & Digital Sector (Crackdown on Piracy & Unlicensed Software) The cleansing process is equally underway in the digital and technology space. The Ministry of Public Security has significantly increased raids on platforms distributing pirated content and businesses using unlicensed software. Furthermore, the revised Intellectual Property Law (effective April 2026) has substantially raised penalties for license violations across industrial materials and technology-related products. For companies operating with proper licensing, the removal of non-compliant competitors is gradually contributing to a more level playing field. 3｜Business Perspectives for Navigating the Transition Period The following perspectives may be helpful when thinking about risk management and strategy during this period of transition. Revisiting Business Plans with Administrative Delays in Mind The current delays are not isolated to specific factories or industries — they reflect a broader posture of caution across the administrative system as a whole. Building in buffers of several months across procurement, license applications, and import/export timelines is one way to reduce exposure to unexpected disruptions. Getting Compliance Documentation in Order One of the most effective ways to move through inspections and licensing reviews smoothly is having clear and readily available proof of compliance. Keeping manufacturing process records, procurement documentation, and intellectual property certificates organized and accessible can make a meaningful difference when responding to regulatory inquiries. Thinking Ahead to the Post-Cleansing Market While the transition period brings its share of operational friction, it is also clearing the path toward a market where only trustworthy, compliant businesses remain. This period can also be seen as an opportunity to strengthen long-term partnerships and build competitive advantages that will matter more once the market stabilizes. 4｜ Sources & References Vietnamese Prime Minister's Office (Official Telegram No. 38/CĐ-TTg) Issued May 5, 2026. A directive from General Secretary and Prime Minister Tô Lâm launching the country's largest-ever nationwide campaign against intellectual property violations and counterfeit goods, with specific numerical targets assigned to each ministry — requiring a 20% or greater increase in enforcement actions compared to the previous year. URL: https://vanban.chinhphu.vn/?pageid=27160&docid=217999 Vietnam News / Vietnam.vn (Official Vietnamese Government Information Portal) Latest reporting as of May 21, 2026. Coverage of the government's anti-corruption and anti-waste policy framework (Plan No. 03-KH/TW). Reports confirm that the government has launched formal audits to resolve administrative bottlenecks caused by officials' risk-avoidant behavior, with a target of clearing the backlog within Q2 2026. URL (Japanese): https://www.vietnam.vn/ja/ke-hoach-03-kh-tw-quyet-liet-phong-chong-tham-nhung-lang-phi Revised Fire Safety Law & Related Decree (Law No. 55/2024/QH15 / Decree No. 69/2026/ND-CP) Latest penalty provisions effective April 20, 2026. Establishes significantly stricter installation standards and penalties for fire safety equipment and infrastructure — serving as the direct legal basis for the tightened administrative processes now being observed. URL (Japanese): https://www.vietnam.vn/ja/siet-chat-ky-cuong-phong-chay-chua-chay-nhung-diem-moi-quan-trong-trong-quy-dinh-xu-phat-hanh-chinh-theo-nghi-dinh-69-2026-nd-cp Circulation License in Vietnam (Vietan Law) An overview of the licensing requirements and procedures for distributing and selling products in Vietnam. Useful background for understanding the practical impact of current administrative delays on market access. URL: https://vietanlaw.com/circulation-license-in-vietnam/ Vietnamnet / Vietnam.vn (Official Vietnamese Government Information Portal) Following the United States' designation of Vietnam as a "Priority Watch List" country, the Vietnamese government has launched an unprecedented national crackdown on intellectual property violations. This goes beyond responding to U.S. pressure — it reflects Vietnam's broader growth strategy and evolving governance approach, as the country moves urgently toward building a trustworthy supply chain essential for attracting high-tech industries such as AI and semiconductors, and for protecting domestic startups. The revised Intellectual Property Law, effective April 1, 2026, has also significantly increased penalties for license violations and counterfeiting across industrial materials and technology sectors. URL (English): https://vietnamnet.vn/en/tightening-ip-enforcement-vietnam-faces-new-enforcement-scenario-2514846.html URL (Japanese): https://www.vietnam.vn/ja/ngan-hang-xam-pham-quyen-so-huu-tri-tue-qua-cua-khau KBC-LINK will continue to monitor regulatory developments across Vietnam's key industries and share timely, relevant updates to support your business decisions. Whenever there are noteworthy developments, we will be sure to keep you informed — so please stay tuned to our future reports.

Vol.3: The Reality of Life in Cambodia — Q&A: The Reality of Safety, Currency, Healthcare, and Cost of Living From Phnom Penh, Cambodia Starting March 5, 2026, KBC-LINK continues its series, 'Cambodia Today,' designed for our readers in Vietnam. Written by the head of a Japanese Desk at a local bank with six years of residency, this series offers authentic, on-the-ground perspectives—from professional financial insights to the realities of daily life. 🔰 About This Series / Author Introduction Hello, my name is Asami Iida, and I lead the Japanese Desk at ABA Bank in Phnom Penh, Cambodia. I am delighted to continue sharing the evolving landscape of “Cambodia Today” with everyone living in Vietnam. This year marks my sixth year of living and working in this vibrant country. When people think of Cambodia, the majestic spires of Angkor Wat often come to mind. While that historical legacy remains a point of pride, Cambodia is now a nation in the midst of a rapid and profound transformation. Through this column, I hope to provide a more contemporary and realistic view of the country as seen through both my professional and personal experiences. Every April, Cambodia celebrates Khmer New Year with a nationwide holiday, and the entire country shifts into celebration mode. This year (April 14–16), Phnom Penh was filled with festive events, including a giant inflatable water slide installed in front of the central post office. Streets across the city became crowded with families, young people, and tourists enjoying the celebrations. Giant water slide in front of the post office during Khmer New Year During the holiday, I visited Siem Reap. However, the area around the famous Pub Street was so crowded that it was nearly impossible to get close. Instead, I joined the water fights taking place on the surrounding streets. Along the streets, residents stood outside their homes spraying water from hoses. Pickup trucks and motorbikes passed continuously, packed with excited participants. Pickup trucks playing a major role during the festival According to local news reports, approximately two million people visited Siem Reap during the holiday period, once again reminding me of Cambodia’s incredible energy and vibrancy. ▶ Full Article (Khmer Times / English) While working in Cambodia, I am often asked: “What is life there actually like?” This time, I would like to answer some of the most common questions I receive about daily life in Cambodia. Is Cambodia Safe? In Phnom Penh, I generally feel that life is safe as long as you exercise normal common sense. Many condominiums and apartment buildings have 24-hour security, making them comfortable places to live. At the same time, working in banking, I receive several consultations each month regarding account security and app access following the loss or theft of smartphones. As in any country, it is important to take basic precautions with valuables. Outside the major cities, there are still areas where houses may have doors but no locks, simply because locking doors is not yet part of daily life in some communities. The contrast between urban and rural lifestyles is also one of Cambodia’s unique characteristics. Is the Currency U.S. Dollars or Cambodian Riel? U.S. dollars are widely used throughout Cambodia, and much of daily life can still be managed entirely in dollars. However, in recent years, efforts to promote the Cambodian riel have accelerated. Supermarkets are increasingly displaying prices in riel, and banks are encouraging customers to open riel-denominated accounts. Some companies have even begun paying salaries partially or fully in riel. Little by little, Cambodia appears to be moving toward greater use of its national currency. How Is Healthcare? Japanese-affiliated clinics and international medical facilities have increased significantly in recent years, making it easier to receive medical treatment in Japanese or English. Many clinics also accept international travel insurance, and some provide cashless treatment arrangements. For highly specialized medical care, some residents still choose to travel to neighboring countries. However, for everyday healthcare and minor illnesses, I feel that Phnom Penh now offers a fairly reliable medical environment. Is the Cost of Living Rising? The cost of living has definitely risen over the past few years. For Japanese residents in particular, the weak yen has amplified this effect. For those earning and spending in U.S. dollars, the increase may not always feel dramatic. However, from the perspective of Japanese yen, exchange rate fluctuations have made everyday expenses feel noticeably higher. Even a simple cup of coffee can feel more expensive today when converted into yen, despite local prices remaining relatively stable. Recently, rising fuel costs have also affected transportation prices. For example, long-distance bus fares have increased, and on my recent trip between Phnom Penh and Siem Reap, ticket prices were approximately two dollars higher per person than before. Looking at all these factors together, Cambodia may best be described as a country where comfortable daily life is becoming increasingly possible, while still remaining very much in the middle of its development journey. Perhaps that is exactly what makes living here so fascinating—the ability to experience a country that is constantly evolving in real time. KBC-LINK Featured News: Cambodia's Economy Today: Insights with Asami Iida of ABA Bank Japanese Desk Cambodia Accelerates Riel Promotion Policy — Salary Payments in Riel Begin Across the Banking Sector As mentioned in Asami Iida’s article, Cambodia’s efforts to promote the use of the riel are now reaching a major turning point. Beginning in 2026, salary payments in Cambodian riel are being gradually introduced across the banking sector. The government’s goal is for more than 25% of bank employees to receive salaries in riel by the end of the year. These changes are already being felt at the operational level. At ABA Bank, where Asami works, salaries are still currently paid entirely in U.S. dollars. However, she notes that friends working at other banks have already shifted to systems where 50% of salaries are paid in riel, while some institutions have moved entirely to riel-based salary payments. Even within the banking industry, the pace of adoption varies significantly from institution to institution. At the same time, the presence of the riel in digital payments is growing rapidly. Transactions denominated in riel through the National Bank of Cambodia’s “Bakong” digital payment system reportedly tripled in 2024 compared to the previous year. The gradual changes Asami experiences in everyday life reflect Cambodia’s long-term effort to reduce dependence on the U.S. dollar and strengthen confidence in its own national currency. ▶ Full Article (Khmer Times / English) Author Profile Asami Iida Based in Cambodia for 6 years Japanese Desk, ABA Bank Supporting Japanese individuals and companies expanding into Cambodia. From financial operations to everyday life, she shares insights into Cambodia’s evolving landscape from both professional and personal perspectives. Contact ABA Bank Japanese Desk Website: https://www.ababank.com/en/oriental-desk/japanes-desk/ Email: oriental_desk@ababank.com Next Episode (Vol.4) In the next article, Asami will introduce:“Weekend Getaways from Phnom Penh — Recommended Travel Destinations (Part 1).” Stay tuned. Editor’s Note This article is a contributed piece. For detailed procedures and financial inquiries, please refer to official channels of the respective institutions.

Vietnam's economy continues to press ahead with structural transformation, driven by accelerating high-tech investment and resilient domestic demand — even as external geopolitical pressures mount. FDI disbursement for January–April reached its highest level in five years, and Intel's transfer of chip manufacturing equipment signals Vietnam's growing ambition as a semiconductor hub. Coffee exports held firm at USD 3.6 billion, underscoring the continued strength of the agricultural sector. At the same time, headwinds are building. April's manufacturing PMI slipped to 50.5 as Middle East tensions pushed up costs across the supply chain. The construction sector, buoyed by infrastructure mega-projects, is grappling with a worsening shortage of skilled workers that is driving up wages and threatening project timelines. On the tourism front, Ho Chi Minh City posted USD 6.5 billion in tourism revenue in just four months — while the Ministry of Public Security simultaneously announced tighter oversight of foreign nationals. Market expansion and compliance tightening are now advancing in parallel. For foreign companies, the operating environment calls for localized supply chains and scenario planning that accounts for both labor and regulatory risk. 📌 Also recommended: Vietnam Economic Highlights — Late April 2026 Vietnam Industry Watch: Key Sectors to Watch Vietnam Economy (General) FDI Disbursement Hits Five-Year High for January–April, Led by Manufacturing According to the latest data from Vietnam's Ministry of Planning and Investment, realized foreign direct investment for January–April 2026 grew 9.8% year-on-year to USD 7.40 billion — the highest amount recorded for the first four months of the year over the past five years. The processing and manufacturing sector accounted for USD 6.12 billion, or 82.7% of total disbursed FDI, reaffirming Vietnam's position as a preferred destination for supply chain relocation. On the newly registered side, 1,249 projects were approved with a combined registered capital of USD 12.15 billion — a 2.2-fold increase in capital terms compared to the same period last year. By country of origin, Singapore led with 49.8% of total newly registered capital, followed by South Korea (33.6%) and China (4.3%). Geographically, Thai Nguyen Province and Ho Chi Minh City attracted the largest concentrations of new investment. Source: Trading Economics, May 3, 2026 https://tradingeconomics.com/vietnam/foreign-direct-investment/news/547117 The accelerating pace of FDI inflows — particularly the concentration in manufacturing — is intensifying competition for industrial land, clean energy supply, and engineering talent in key industrial zones. Companies evaluating Vietnam as a production or sourcing base should move early on site selection and conduct thorough local benchmarking on compensation and benefits. A market that is this active rewards preparation. Construction and Infrastructure Skilled Labor Shortage Reaches Critical Levels as Q2 Construction Demand Surges According to ManpowerGroup Vietnam's "Vietnam Construction Workforce Trends 2026" report, the construction sector has become the most competitive segment of the country's labor market. The Net Employment Outlook (NEO) for Q2 2026 stands at 64%, with 75% of construction companies indicating plans to expand their workforce. The demand spike is being driven by the convergence of FDI-linked factory construction and landmark infrastructure projects — including the North–South Expressway and Long Thanh International Airport. Against this backdrop, the shortage of skilled professionals with specialized capabilities — including BIM (Building Information Modeling) and green building certifications — has reached a breaking point. Poaching activity is driving up wages rapidly, and the resulting cost pressure is translating directly into project delay risk for mid-sized contractors. Source: ManpowerGroup Vietnam, May 12, 2026 https://www.manpower.com.vn/en/insights/blogs/2026/05/construction-workforce-trends-vietnam-2026 For companies entering Vietnam through construction, infrastructure, or real estate-adjacent businesses, separate risk assessments for costs, timelines, and workforce availability are essential — not optional. Fixed-price contracts in particular should include explicit material cost escalation clauses. Assuming that a favorable project pipeline translates directly into predictable profitability would be a costly mistake in the current environment. Manufacturing April Manufacturing PMI Falls to 50.5 — Geopolitical Cost Pressures Hit Demand The S&P Global Vietnam Manufacturing Purchasing Managers' Index (PMI) for April 2026, released on May 4, fell to 50.5 from 51.2 in March — the lowest reading in seven months. While the index remained above the 50-point expansion threshold for the twelfth consecutive month, the pace of growth in both new orders and output slowed sharply. The primary drivers were rising fuel and oil prices linked to escalating Middle East tensions, compounded by surging global maritime freight costs. Input prices climbed at the fastest pace in 15 years, forcing manufacturers to pass costs through to selling prices. As a result, new orders — particularly export orders — contracted for the first time in eight months, and business sentiment among manufacturers fell to its lowest level in seven months. Source: S&P Global / Trading Economics, May 4, 2026 https://tradingeconomics.com/vietnam/manufacturing-pmi Vietnam's manufacturing sector remains in expansion territory, but is increasingly exposed to external geopolitical shocks and logistics cost volatility. Companies entering the market should prioritize building supply chain models that are resilient to freight cost fluctuations — specifically by increasing the localization ratio of inputs and reducing dependence on long-haul import logistics wherever feasible. Agriculture Vietnam Maintains World No. 2 Coffee Producer Status; January–April Exports Reach USD 3.6 Billion According to the latest data from the U.S. Department of Agriculture (USDA) and Vietnam's Ministry of Agriculture and Rural Development, Vietnam is on track to cement its position as the world's second-largest coffee producer and the largest global supplier of Robusta beans in the 2025/26 crop year. Favorable weather and increased investment in plantations are expected to drive production to 30.8 million bags (60 kg each), marking a recovery from the previous season. Coffee exports for January–April 2026 reached USD 3.6 billion, making coffee Vietnam's top-earning agricultural export category for the period. April alone saw export volumes of 198,000 tons, up 15% year-on-year. While average export prices have softened year-on-year due to global supply concerns, Vietnamese Robusta continues to hold a dominant position in the instant coffee and commercial blending markets worldwide. Note: Japanese yen equivalents have been omitted from this edition pending confirmation of the applicable exchange rate. Source: Asia News Network, May 15, 2026 https://asianews.network/vietnam-cements-status-as-worlds-no-2-coffee-producer-robusta-powerhouse/ Vietnam's coffee industry is shifting from volume-based production toward value-added processing — a transition driven by global demand for Robusta and growing domestic processing capacity. For companies with capabilities in roasting, instant coffee manufacturing, or brand development, the business environment for establishing local processing operations or partnering with existing producers is highly favorable. Technology & IT Talent Vietnam's National Semiconductor Lab Advances as Intel Transfers Chip Assembly Equipment to Hanoi Vietnam National University Hanoi (VNU) is accelerating the development of its USD 70 million National Semiconductor Laboratory. As a landmark step in this initiative, Intel and its local subsidiary (IPV) have transferred a full set of commercial-grade chip assembly and testing equipment — used in back-end semiconductor manufacturing — to VNU and Saigon Hi-Tech Park (SHTP). This marks the first time Intel has repurposed active commercial manufacturing equipment for educational and research use in Vietnam. The initiative is directly aligned with the Vietnamese government's national target of training 50,000 semiconductor engineers. VNU will use the equipment to build advanced hands-on training capacity in chip packaging, testing, and IC design. The broader ecosystem is expanding rapidly: the number of IC design firms in Vietnam has grown from 40 to 60 over the past two years, while back-end manufacturing and assembly companies have increased from 7 to 15. Source: TechNode Global, May 13, 2026 https://technode.global/2026/05/13/vnu-advances-70m-national-semiconductor-lab-as-intel-transfers-chip-equipment/ Intel's equipment transfer is a concrete signal — not just a policy statement — that Vietnam is transitioning from a low-cost labor destination to a high-technology manufacturing hub. As the talent pipeline matures, the window for early-mover advantage is open for companies in semiconductor design, advanced components, and manufacturing equipment. Establishing local partnerships or research linkages with VNU now positions companies ahead of the curve. Hotel & Tourism Investment 6-1. Ho Chi Minh City Tourism Revenue Tops USD 6.5 Billion in First Four Months — Over 52% of Annual Target Achieved Ho Chi Minh City recorded strong tourism growth in the first four months of 2026, generating more than VND 172 trillion (approximately USD 6.5 billion) in tourism revenue — fulfilling over 52% of the city's full-year target ahead of schedule. International arrivals to the city during the period were estimated at 4.78 million, while domestic tourist numbers reached approximately 19.2 million. During the extended holiday period from April 25 to May 3 — covering the Hung Kings Commemoration Day, Reunification Day, and International Workers' Day — the city welcomed an estimated 190,000 international visitors and 1.5 million domestic travelers, generating approximately VND 8.7 trillion (USD 330 million) in revenue. The city launched nearly 1,000 new tourism products and services during the period, with nighttime tourism offerings (including the Cu Chi Tunnels night tour and Cho Lon Night Tour) and MICE tourism performing strongly. Source: Tuoi Tre News, May 9, 2026 https://news.tuoitre.vn/ho-chi-minh-city-tourism-revenue-tops-65bn-in-2026s-first-4-months-103260509135416364.htm Ho Chi Minh City's tourism market is in a clear expansion phase, with both volume and product quality moving in the right direction. For companies considering entry into hospitality, food and beverage, MICE, or nighttime economy segments, demand-side conditions are favorable. A pace of 52% of the annual target fulfilled in just four months strongly suggests full-year performance will significantly exceed the original target — making this a compelling data point for new investment decisions. 6-2. As Tourist Arrivals Surge, Ministry of Public Security Announces Tighter Oversight of Foreign Nationals — Compliance Risk Increases Against the backdrop of record tourist arrivals, Vietnam's Deputy Minister of Public Security, Pham The Tung, announced on May 15 at a conference in Ho Chi Minh City that the government will strengthen management and monitoring measures for foreign nationals residing in and traveling through Vietnam. The country received a record 22.8 million international visitors in 2025 (up approximately 18% year-on-year), and has already welcomed more than 9 million in the first months of 2026 — a 22.5% increase compared to the same period last year. The government stated its intention to maintain open visa policies to support tourism and investment, while warning that a growing number of foreign nationals are exploiting these policies for illegal employment, overstay violations, and other unlawful activities — creating national security concerns. Going forward, police organizations nationwide — particularly community-level district and ward police — will intensify monitoring of accommodation facilities including hotels and short-term rentals, and will strengthen coordination on entry and exit data. Source: Qazinform / VNA, May 17, 2026 https://qazinform.com/news/vietnam-plans-tighter-oversight-of-foreigners-amid-record-tourist-arrivals-3c0d7b While Vietnam's visa regime continues to trend toward openness, operational compliance requirements for foreign nationals on the ground are tightening considerably. Foreign companies should treat this as a signal to review and tighten internal compliance procedures across three specific areas. First, work permit and business visa expiration tracking and renewal workflows. Second, guest registration obligations for foreign staff and customers using hotels, condominiums, and short-term rental accommodation. Third, operational readiness for unannounced on-site checks by district and ward-level police. The risk of penalties for procedural non-compliance is meaningfully higher than it was previously. Early engagement with a qualified local legal and HR compliance advisor is strongly recommended. KBC-LINK Editorial Perspective Vietnam's economy is in a period of qualitative transformation. The high-tech ambitions are real — semiconductor infrastructure is being built, FDI is flowing in at record pace, and the talent pipeline is gradually maturing. But the "growth distortions" are equally real: global cost pressures are squeezing manufacturers, skilled labor shortages are straining the construction sector, and the regulatory environment for foreign nationals is tightening. The operating premise that made Vietnam attractive as a "low-cost destination" is not wrong — but it is increasingly insufficient as a standalone strategy. Companies that will succeed in the next phase are those that build supply chains resilient to geopolitical shocks, invest consistently in local talent relationships, and approach compliance not as a checkbox but as a structural advantage. KBC-LINK will continue to provide ground-level insight designed to bridge the gap between Vietnam's headline narrative and operational reality. Edited & Summarized by: KBC-LINK Editorial Team (compiled with independent perspectives and on-the-ground insights).

Spritz into Luxury: One Push of High-End Perfume for Just $1 This week's theme: The Perfume Vending Machine "PERFUMATIC" 1｜So, what exactly is this service? It's a vending machine that lets you experience a single spritz (approx. 0.12ml) of a high-end luxury fragrance for as little as 100–500 yen (roughly $1–$4). Fragrances that would cost tens of thousands of yen for a full bottle can be selected via touchscreen and sprayed directly onto your wrist or a scent strip, right then and there. The machine uses a proprietary sealed spray technology that has received an international patent — by blocking outside air, it prevents deterioration and evaporation, keeping every spritz as fresh as the first. "I want to try it before committing to a full bottle." "I want to switch up my scent depending on my mood." This service is built for exactly those moments. 2｜Why is this market taking off now? Because a new kind of consumption — call it "mood consumption" — is on the rise, especially among younger generations. It's less about owning things and more about how you feel in the moment. For today's generation, perfume isn't about finding "a signature scent for life." It's become something to switch up like an outfit — chosen by mood, occasion, or the vibe of the day. At the same time, luxury fragrances have always come with a high price tag and the risk of buying something you end up not using. This vending machine bridges that gap by letting people try trending scents or aspirational brands without fear of making a costly mistake. The response has been remarkable: at Lucua Osaka, approximately 5,000 people used the machine within just one month of installation. 3｜How do Japan and Vietnam connect? 🇯🇵 Japan Japan is sometimes called a "perfume desert" — compared to Western markets, there's enormous room for growth. Consumers here tend to value brand prestige and experience. The combination of social media marketing and real-world vending machine placement is proving to be a powerful strategy. 🇻🇳 Vietnam Vietnam has a large young population, and in urban areas, interest in luxury brands and experience-based consumption is growing fast — mirroring trends seen in Japan. Commercial facilities like AEON Mall, which already has a strong presence in Vietnam, are well-suited to this kind of innovative retail technology. Pairing Japan's data-driven marketing know-how with Vietnam's young, digitally native market could create a new model for experiential retail — one with the potential to spread across Southeast Asia. 4｜What makes this business interesting? This isn't simply a product sales machine. It's a marketing business built around foot traffic and data collection. - Minimal footprint, maximum impact: With just 0.2 square meters of floor space and a power outlet, the machine functions as a customer attraction tool for any venue. - Offline data made visible: Real-time data on who chose which scent, when, and by what demographic (age, gender) can be collected and used directly for brand promotion. - Low-cost brand awareness: For fragrance brands, it's a powerful PR tool — letting target customers actually experience the scent at far lower cost than running a pop-up store. 5｜What this business tells us PERFUMATIC has dramatically lowered the barrier to entry for luxury goods by breaking them down into single-use experiences. Vending machines used to be places to buy things. Going forward, they may evolve into places to discover new preferences. In markets like Japan — where quality matters deeply and curiosity about new things runs high — a model that uses technology to preserve freshness while offering micro-sized access could easily extend beyond fragrance into other categories. From owning things to experiencing things. Businesses that sell "risk-free discovery" are becoming one of the clearest signals of where both Japan and Vietnam are headed as consumer markets. ─────────────────────────── Sources · Nikkei Trendy 2026 Hit Predictions (YouTube): https://www.youtube.com/watch?v=R3LpS_m-CqA · Web Tan Forum, ITmedia Business Online, various press releases · Compiled by KBC-LINK editorial team based on SNS posts and publicly available information KBC-LINK Did You Know? The World Is Full of Fascinating Businesses. is updated weekly (planned). Next time, we dive into another unique business from around the world.

Vol.2: Everyday Scenes I Love in Phnom Penh From Phnom Penh, Cambodia Starting March 5, 2026, KBC-LINK continues its series, 'Cambodia Today,' designed for our readers in Vietnam. Written by the head of a Japanese Desk at a local bank with six years of residency, this series offers authentic, on-the-ground perspectives—from professional financial insights to the realities of daily life. 🔰 About This Series / Author Introduction Hello, my name is Asami Iida, and I lead the Japanese Desk at ABA Bank in Phnom Penh, Cambodia. I am delighted to continue sharing the evolving landscape of “Cambodia Today” with everyone living in Vietnam. This year marks my sixth year of living and working in this vibrant country. When people think of Cambodia, the majestic spires of Angkor Wat often come to mind. While that historical legacy remains a point of pride, Cambodia is now a nation in the midst of a rapid and profound transformation. Through this column, I hope to provide a more contemporary and realistic view of the country as seen through both my professional and personal experiences. Life in Cambodia — Six Years Later The Rapid Expansion of Convenience Stores Morning Vibrancy in the City One thing that still fascinates me, even after six years in Cambodia, is the beauty found in ordinary daily life. These are not necessarily famous tourist attractions, but rather the small moments and scenes that quietly become part of everyday living. One of the first things visitors notice is how early the city comes alive. By 5 or 6 in the morning, food stalls, local markets, and small shops are already open, and the streets begin to fill with activity. In front of banks and office buildings, temporary morning stalls naturally appear, selling coffee, noodles, and rice porridge to commuters. These informal stalls seem to materialize in the same spots each morning—a sight I now think of as entirely ordinary. Some restaurants only open in the morning. On weekends, I sometimes wake up early, enjoy breakfast outdoors around 7 a.m., and then spend a relaxing morning at a café. Starting the day early somehow makes the entire day feel more productive and rewarding. Cambodia can become very hot during the daytime, and sightseeing in the afternoon can sometimes feel exhausting, but the mornings are surprisingly comfortable. The Rapid Expansion of Convenience Stores Recently, I have also noticed changes in how younger generations spend their time. In Cambodia, convenience stores with outdoor seating areas or rooftop tables have become increasingly popular. Many people use them almost like cafés or casual gathering spaces. Most stores offer free Wi-Fi and operate 24 hours a day, making them convenient places to relax or meet friends. Seeing young people casually spending time together outside convenience stores reminds me of scenes I once admired when I was younger myself. Even the way convenience stores are used reflects something uniquely Cambodian. The Royal Palace on Weekends The Royal Palace on Weekends The atmosphere from evening into nighttime has also changed significantly over the past few years. Every weekend, parts of the riverside area become pedestrian-only streets filled with night markets. Numerous stalls sell everything from local food to clothing and handmade goods. The riverside used to feel like a place mainly for jogging or evening walks, but today it has evolved into one of Phnom Penh’s most popular gathering spots for young people and families alike. Near the Royal Palace, people gather and spend time at a relaxed pace, creating a peaceful and welcoming atmosphere. Everyday Kindness What leaves the strongest impression on me, however, is the closeness and kindness between people. I sometimes travel by motorbike, and one day I unknowingly rode with a flat tire. While waiting at a traffic light, a stranger next to me noticed and kindly gestured to let me know. On another occasion, someone honked their horn simply to alert me that my bike was making an unusual sound. In Japan, people might simply pass by without saying anything. But in Cambodia, strangers often quietly look out for one another in small but meaningful ways. I have been helped many times by these moments of everyday kindness. Even outside the glamorous tourist destinations, there are countless small moments in daily life that make me stop and think, “This is such a wonderful place.” Even after six years, Cambodia continues to surprise me with its warmth and charm. KBC-LINK Featured News: Cambodia's Economy Today: Insights with Asami Iida of ABA Bank Japanese Desk New Container Terminal at Sihanoukville Port Surpasses 60% Completion — Scheduled to Begin Operations in 2027 At the Port of Sihanoukville (PAS), Cambodia’s most important international port, construction and expansion of a new container terminal—supported by Japanese ODA loans through JICA—has now surpassed 60% completion. Operations are expected to begin in 2027. Expected in 2027: The new terminal will allow large vessels to dock directly in Cambodia, expanding the country’s global shipping connections. Expected Impact: The project is expected to reduce logistics costs and accelerate investment into nearby industrial zones. Beyond Phnom Penh’s daily scenery, Cambodia’s “logistics lifeline” is also entering a major period of transformation. ▶ Full Article (Khmer Times / English) Author Profile Asami Iida Based in Cambodia for 6 years Japanese Desk, ABA Bank Supporting Japanese individuals and companies expanding into Cambodia. From financial operations to everyday life, she shares insights into Cambodia’s evolving landscape from both professional and personal perspectives. Contact ABA Bank Japanese Desk Website: https://www.ababank.com/en/oriental-desk/japanes-desk/ Email: oriental_desk@ababank.com Next Episode (Vol.3) In the next article, Asami will discuss a common question many people ask: “Is Cambodia Really Dangerous? The Reality of Daily Life.” Stay tuned. Editor’s Note This article is a contributed piece. For detailed procedures and financial inquiries, please refer to official channels of the respective institutions.

"Wash it, fix it, love it again" This week's theme: Specialty Cleaning Services for Stuffed Animals 1｜So, what exactly is this service? It's a professional cleaning service that carefully washes stuffed animals one by one. Even plush toys that can't be tossed into a regular washing machine are handled with care — through hand washing, air drying, sanitizing, and other methods suited to each material. Some providers even offer re-stuffing and stitch repair. "Rather than buying a new one, I want to keep this one forever." — This service is made for exactly that feeling. 2｜Why is this market taking off now? The simple answer: stuffed animals have become things people just can't throw away. Today's stuffed animals are far more than "toys." They're treated like family — taken on outings, featured on social media, and cherished as companions. At the same time, many owners worry: "I want to wash it, but I'm afraid to do it at home." This service fills exactly that gap. The rise of *nuikatsu has driven growing demand for maintaining appearance and cleanliness. And because word spreads easily on social media, the momentum keeps building. *Nuikatsu (ぬい活) refers to the hobby and lifestyle of cherishing stuffed animals as companions or family members — not just as collectibles or children's toys. It's a culture in which people treat their plush toys as sources of comfort, joy, and emotional connection. 3｜How do Japan and Vietnam connect? 🇯🇵 Japan The market is driven by emotional value — the desire to "cherish memories along with the item itself." Fueled by nuikatsu culture and social media, demand for washing and repair services continues to grow. 🇻🇳 Vietnam Vietnam's strength lies in its expertise as a major textile and garment manufacturing nation. Flexible small-batch production is easy to manage, and there's growing potential to shift from "a country that makes" to "a country that restores." Japan is moved by sentiment; Vietnam is supported by skill and craftsmanship. Together, they form a natural and compelling partnership. 4｜What makes this business interesting? This isn't just cleaning — it's selling the restoration of memories. Because customers choose based on emotion rather than price, the business stays largely insulated from price competition. It also pairs well with delivery and e-commerce models, with potential to grow beyond Japan into international gift markets. The idea that "repairing and extending the life of things" can become a viable service business — that's what makes this truly worth watching. 5｜What this business tells us Japan's value of "repair and reuse" aligns naturally with Vietnam's textile craftsmanship and production capabilities. In Vietnam, especially among younger generations, emotional consumption is on the rise — a shift toward valuing experiences and emotional connections over material goods alone. Emotion-driven services like this could be a key hint for new business opportunities connecting Japan and Vietnam. ─────────────────────────── Sources · AFP News Agency (YouTube)　https://youtu.be/9JUwHi03fcc?si=I3aMdMsyPa5YHhmU · Official websites of various cleaning service providers · Compiled by KBC-LINK editorial team based on SNS posts and publicly available information KBC-LINK Did You Know? The World Is Full of Fascinating Businesses. is updated weekly (planned). Next time, we dive into another unique business from around the world.

This report curates the most important Vietnam-related economic news from late April 2026, selected specifically for small and mid-sized foreign businesses and investors who are actively monitoring or considering entry into the Vietnamese market. Note: Editorial comments at the end of each topic are insights and analysis prepared by the KBC-LINK editorial team, based on publicly available information.. If one theme defines Vietnam's economic news in late April, it is this: strong ambition, uneven execution. Headline macroeconomic figures — GDP growth, FDI inflows, tourist arrivals — remain robust. Yet on the ground, delayed public investment disbursement, a construction sector caught in a cost-and-labor squeeze, and persistent bottlenecks in manufacturing all point to a widening gap between strategic intent and operational capacity. At the same time, meaningful structural shifts are underway. Agricultural digitalization, the rethinking of IT talent development, and a more discerning hotel investment market all signal that Vietnam's economy is not just growing — it is gradually changing in character. For companies considering market entry, the ability to read both the headline numbers and the ground-level friction is more important than ever. 📌 Also recommended: Vietnam Economic Highlights — Early April 2026 Vietnam Industry Watch: Key Sectors to Watch Vietnam Economy (General) Vietnam's Growth Ambitions Meet Structural Headwinds Vietnam's economy posted GDP growth of 7.83% in Q1 2026, maintaining the momentum needed to pursue the government's ambitious full-year target of 10%. Average inflation held at 3.51%, but March's month-on-month CPI surged to 4.65% — a level that warrants serious attention as a sign of cost-push inflationary pressure. On the positive side, registered FDI rose more than 40% year-on-year, reflecting continued confidence from international investors. However, public investment disbursement reached only approximately 11% of the annual plan by end of Q1 — a persistent structural problem where capital moves quickly on paper but slowly in the field. Root causes include unresolved land clearance issues, inconsistent material supply chains, layered administrative procedures, and — critically — a bureaucratic culture that prioritizes avoiding mistakes over taking initiative. Source: TuoiTre Online, April 28, 2026 Vietnam is navigating what one analyst describes as a period of "turbulence" — high growth ambition paired with structural execution gaps. Companies considering market entry should resist anchoring their business plans to optimistic macro indicators alone. Build in realistic buffers for procedural delays, cost escalation, and slower-than-expected approvals at the local level. A conservative, flexible plan will consistently outperform an optimistic, rigid one in this environment. Construction and Infrastructure A Sector Under Pressure: Rising Costs Meet a Shrinking Workforce Vietnam's construction industry is grappling with a double crisis in 2026. A robust pipeline of public infrastructure projects and growing real estate demand means there is no shortage of work. But surging raw material prices and logistics disruptions have created a painful dilemma for contractors: continuing a project means operating at a loss, while halting it risks breach of contract. Compounding the cost pressures is a worsening labor shortage. Workers are increasingly migrating to higher-paying sectors or being poached by larger developers, driving up wages and threatening the viability of small and mid-sized contractors. Source: VnEconomy, April 22, 2026 For companies entering Vietnam through construction, infrastructure, or real estate-adjacent businesses, separate risk assessments for costs, timelines, and workforce availability are essential — not optional. Fixed-price contracts in particular should include explicit material cost escalation clauses. Assuming that a favorable project pipeline translates directly into predictable profitability would be a costly mistake in the current environment. Manufacturing Strong Headline Growth, Persistent Ground-Level Bottlenecks Strong Headline Growth, Persistent Ground-Level Bottlenecks Vietnam's manufacturing and processing sector grew 11.1% year-on-year in Q1 2026, continuing its role as the primary engine of economic expansion. Metal production rose 20.13% and non-metallic mineral products grew 22.28%, driven largely by public infrastructure investment. Computer and components exports surged 45.5%, and the domestic shipbuilding industry achieved a milestone with the launch of its largest domestically designed vessel to date — a 65,000 DWT cargo ship. However, the headline figures mask significant stress below the surface. Middle East tensions are pushing up energy and input costs, compressing margins. The manufacturing PMI eased to 51.2 in March. Shortages of apatite (a key industrial raw material) and qualified skilled labor are creating production bottlenecks in several provinces. The government has approved a new "Strategic Industries Law" aimed at strengthening upstream supply chains and increasing domestic value-added content. Sources: Báo Đầu tư Chứng khoán, April 22, 2026; Tạp chí Công Thương, April 29, 2026; Lao Động, April 28, 2026; Quân đội nhân dân, April 28, 2026 For companies evaluating manufacturing partnerships or direct investment in Vietnam, the strong aggregate numbers should not obscure the need for granular due diligence. Supply chain diversification and access to qualified technical labor are the two most critical variables to assess before committing. "High growth" at the sector level does not automatically translate to predictable operational performance at the plant level. Agriculture Vietnam's Farming Sector Enters a Digital Inflection Point Vietnam's agricultural sector is undergoing a significant structural transition in 2026, driven by a nationwide push for digital transformation (DX). For the country's more than 19,000 active agricultural cooperatives (HTX), adopting technology to adapt to climate change and sharpen international competitiveness has shifted from being a strategic option to a survival requirement. Concrete results are beginning to emerge across provinces. Hai Duong Province has implemented QR code-based supply chain tracking; Lam Dong Province is using IoT sensors for resource management; An Giang Province has connected farmers to real-time market data and policy updates through mobile applications, supporting local brand-building efforts. The government has set a target for full electronic data integration across all cooperatives by 2030, though rural broadband infrastructure gaps and a shortage of agricultural IT talent remain significant hurdles. Source: Ministry of Science and Technology Communications Center, April 22, 2026 Vietnam's agricultural sector is moving — unevenly but unmistakably — from labor-intensive production toward data-driven operations. For companies with capabilities in agricultural IoT, traceability systems, or agri-tech solutions, government policy is now actively creating market demand. The window for early-mover advantage in this segment is open. Technology & IT Talent Beyond Code: What Vietnam's Next Generation of IT Professionals Is Being Trained to Do As AI tools increasingly automate coding and testing workflows, Vietnamese IT educators are actively rethinking what it means to prepare students for the workforce. The emerging framework centers on a three-tier capability model: Foundation: Deep understanding of algorithms, data structures, and computer architecture — the fundamentals that AI cannot reason around. Middle layer: Practical AI fluency, including prompt engineering and working effectively with large language model tools. Peak: Skills that AI cannot readily replicate — design thinking, AI ethics, cross-disciplinary problem-solving, and the ability to critically evaluate AI-generated outputs rather than simply accepting them. The shift in framing is notable: students are being encouraged to see themselves not just as creators of software, but as informed evaluators — capable of auditing what AI produces. Familiarity with applied concepts such as LLM Ops and retrieval-augmented generation (RAG) is increasingly part of the curriculum. Source: Báo Giáo dục và Thời đại, April 26, 2026 Foreign companies hiring Vietnamese IT talent should update their evaluation criteria accordingly. Coding speed and technical proficiency remain important, but the more differentiating question is: Can this candidate explain why they chose a particular solution? Engineers who over-rely on AI tools without understanding their limitations will struggle when non-standard problems arise. Consider packaging structured AI-literacy training into your onboarding program — and position your workplace as one where engineers exercise genuine creative judgment, not just tool operation. Vietnam should increasingly be viewed as a potential DX enablement hub, not simply a cost-arbitrage destination. Hotel & Tourism Investment From Volume to Value: Vietnam's Hotel Market Enters a Selective Investment Phase Vietnam's hotel investment market is undergoing a qualitative shift — moving from broad-based expansion toward selective, value-driven asset acquisition. A recently completed transaction valued at approximately USD 53.7 million has reignited investor interest from both domestic and international buyers. Domestic investors are showing a preference for long-term asset holds with active repositioning, while foreign investors are applying increasingly rigorous standards around location quality and international operational benchmarks. Total hotel investment for 2026 is projected to reach USD 200 million. Underpinning this investment activity is strong fundamentals: international arrivals in Q1 2026 reached 6.76 million, a 12.4% increase year-on-year, signaling robust and sustained recovery in tourism demand. Source: VnEconomy, April 29, 2026 For companies considering entry into Vietnam's hospitality, real estate, or tourism-adjacent sectors, three strategic considerations stand out.　First, the market has moved beyond simple asset acquisition toward value creation through repositioning — post-purchase rebranding, operational improvement, and customer experience enhancement are now the primary drivers of investment returns.　Second, hotel land in Vietnam is classified as commercial-service land, typically structured as leasehold rather than freehold. Foreign companies may hold 100% ownership stakes, but lease duration and legal structure directly affect asset valuation. Rigorous legal due diligence at the outset is non-negotiable.　Third, the most successful model currently involves complementary local-foreign partnerships — pairing domestic investors who bring market knowledge and regulatory relationships with international operators who bring management standards and global networks. A joint approach consistently outperforms solo market entry in terms of both speed-to-operation and long-term efficiency. KBC-LINK Editorial Perspective Across all six topics this month, a single underlying theme emerges: Vietnam is determined to transform, but the pace of transformation is uneven. Macro indicators — GDP growth, FDI, arrivals, manufacturing output — continue to paint an encouraging picture. But public investment execution delays, construction sector stress, and manufacturing bottlenecks all point to the same friction point: the system's operational capacity has not yet caught up with its strategic ambitions. For foreign small and mid-sized businesses, this gap is not just a risk — it is also where opportunity lives. Companies that can navigate procedural complexity, invest patiently in local talent, and build genuine complementary partnerships with Vietnamese counterparts will find themselves well-positioned as the market matures. KBC-LINK will continue to provide ground-level insight designed to bridge the gap between Vietnam's headline narrative and operational reality. Edited & Summarized by: KBC-LINK Editorial Team (compiled with independent perspectives and on-the-ground insights).

Vol.1: Phnom Penh — A City Transformed in Six Years From Phnom Penh, Cambodia Starting March 5, 2026, KBC-LINK is proud to introduce a new series, “Cambodia Today,” designed for our readers in Vietnam. Written by the head of a Japanese Desk at a local bank with six years of residency, this series offers authentic, on-the-ground perspectives—from professional financial insights to the realities of daily life. Hello, my name is Asami Iida, and I lead the Japanese Desk at ABA Bank in Phnom Penh, Cambodia. I am excited to launch this series and share the evolving landscape of “Cambodia Today” with everyone living in Vietnam. This year marks my sixth year of living and working in this vibrant country. When people think of Cambodia, the majestic spires of Angkor Wat often come to mind. While that historical legacy remains a point of pride, Cambodia is now a nation in the midst of a rapid and profound transformation. Through this column, I hope to provide a more contemporary and realistic view of the country as seen through both my professional and personal experiences. A City That Has Changed Dramatically in Six Years I often hear people say, “Cambodia has enormous potential.” Looking back at when I first arrived six years ago, the change in Phnom Penh is truly striking. The skyline is now dotted with high-rise buildings and modern condominiums. Major roads have been upgraded, and new expressways have drastically improved connectivity. The dining scene has also exploded with a variety of new cafés and restaurants. In key districts, improved security has created a calm, comfortable environment—even for those walking at night. Differences in Traffic Compared to Vietnam Having visited Vietnam several times, one of the most immediate differences I notice is the traffic. In Vietnam’s major cities, the streets hum with the constant, high-energy flow of motorcycles and cars. In contrast, Phnom Penh’s traffic feels less dense. While car ownership is rising rapidly, the overall congestion has not yet reached the levels seen in Vietnam, giving the city a slightly different pace. Everyday Convenience and Digital Speed These differences are also reflected in daily life. When using ride-hailing apps, cars in Cambodia tend to arrive relatively quickly, whereas in Vietnam, depending on the time and location, waiting more than 10 minutes is not uncommon. It feels as though differences in economic scale and population are directly reflected in the pace of urban life. The Potential of a Young Nation Despite these differences, Cambodia’s evolution is accelerating. Digital leapfrogging is evident here; the widespread adoption of QR code payments—integrated directly with banking apps—means you can now go almost anywhere with just a smartphone. Electric vehicles (EVs) are also becoming a common sight, signaling a shift toward the next phase of development. With a median age in the twenties, Cambodia is a young, energetic nation. Witnessing its growth firsthand is one of the most rewarding aspects of working here. While we are neighbors, information about Cambodia can still feel limited. Through this series, I hope to make this country feel more familiar—whether you are considering it for travel, business, or as a place to live. Author Profile Asami Iida Based in Cambodia for 6 years Japanese Desk, ABA Bank Supporting Japanese individuals and companies expanding into Cambodia. From financial operations to everyday life, she shares insights into Cambodia’s evolving landscape from both professional and personal perspectives. Contact ABA Bank Japanese Desk Website: https://www.ababank.com/en/oriental-desk/japanes-desk/ Email: oriental_desk@ababank.com Next Episode (Vol.2) In the next article, Asami will introduce her favorite local scenes in Phnom Penh. Stay tuned. Editor’s Note This article is a contributed piece. For detailed procedures and financial inquiries, please refer to official channels of the respective institutions.

In this article, the KBC-LINK editorial team selects and introduces key topics from the economic news announced in early April 2026 that Japanese and international SMEs and investors considering or monitoring the Vietnamese market should keep on their radar. Note: Editorial comments at the end of each topic are insights and analysis prepared by the KBC-LINK editorial team, based on publicly available information.. The most notable trend in the first half of April is that, backed by strong Q1 economic growth (GDP 7.83%), a series of "concrete measures" for the next growth phase are being rolled out. 📌  Also recommended: Vietnam Economic Highlights — Late March 2026 Vietnam Industry Watch: Key Sectors to Watch Vietnam Economy (General) Q1 2026 GDP Growth Reaches 7.83%, Driven by the Service Sector According to the General Statistics Office (GSO), the real GDP growth rate for the first quarter of 2026 was 7.83% year-on-year. This surpasses last year’s growth (7.07%), with the service sector accounting for approximately 50% of the total added value of the economy, serving as a major pillar. The industry and construction sectors also showed steady performance, confirming solid momentum toward achieving the National Assembly’s annual target of "10% or more" for 2026. While maintaining macroeconomic stability, the recovery of domestic demand and expansion of exports are continuing. Source: The Investor / April 4, 2026 The revitalization of domestic demand, centered on the service industry, appears to be a powerful factor driving the overall growth of the Vietnamese economy. Construction and Infrastructure Three New Bridges Connecting HCMC and Neighboring Provinces to Break Ground in Q2 To strengthen the logistics network of the Southern Economic Zone, construction of three new bridges connecting Ho Chi Minh City and Dong Nai Province is set to begin in the second quarter of 2026. This is part of the infrastructure development plan for the Southern Key Economic Region. Once completed, it is expected to alleviate chronic congestion and reduce transportation costs. The growth of the construction industry in Q1 is also supporting GDP, and the execution of public investment is beginning to take a concrete shape in stimulating the regional economy. Source: Vietnam.vn / April 10, 2026 By strengthening physical connections between major cities, the expansion of new business-appropriate locations, including surrounding areas, is drawing significant attention. Manufacturing FDI Execution Hits 5-Year High; Japanese Electronic Component Maker Invests $50M Foreign Direct Investment (FDI) execution in the first quarter of 2026 reached $5.41 billion, the highest level in the past five years. Investment in the electronics and semiconductor sectors has been particularly active. For instance, Japan's Meiko Electronics has invested approximately $50 million to establish a new subsidiary, continuing the movement to strengthen supply chains. It is reported that the Vietnamese government is currently shifting from the "quantity" of investment to a "selective attraction" phase that prioritizes quality, including technology transfer and environmental impact. Source: TNGlobal / April 9, 2026 The continued establishment and expansion of manufacturing bases involving advanced technology suggest that the industrial structure is steadily becoming more sophisticated. Agriculture Webinar Held for Sustainable Development of the Coffee Industry On April 10, an online conference was held on the theme of value enhancement and sustainable development for coffee, one of Vietnam's major export products. The main focus of the discussion was responding to international environmental regulations and reducing carbon emissions during the production process. Vietnamese coffee beans (Robusta) maintain high demand in international markets, and production sites and exporters are increasingly focusing on high value-addition through branding and ensuring traceability, rather than just increasing production. Source: Vietnam Circular Economy Hub / April 10, 2026 Efforts to turn compliance with environmental standards into added value are reaching a critical turning point that will determine the competitiveness of major export agricultural products. Technology & Environment Accelerating "Digital Parliament" Development: Using AI and Big Data for Legislation The Office of the National Assembly announced a program on April 14 to accelerate parliamentary operations through digital technology. This includes utilizing AI and Big Data to streamline the legislative process, as well as full adoption of paperless systems and electronic signatures. Against the backdrop of the "Law on Digital Technology Industry" enacted on January 1, the government and public institutions aim to become model cases for DX (Digital Transformation), supporting the goal of raising the digital economy's share to approximately 30% of GDP by 2026. Source: Vietnam News Agency / April 14, 2026 Digitalization as a national policy is being strongly pushed from the public sector, and the maintenance of IT infrastructure and the operation of related laws are becoming clearer. Fire Safety, Disaster Prevention & Rescue New Penalties Defined for Fire Prevention in Electric Vehicle (EV) Charging Areas On April 1, the government issued a new decree (No. 69/2026/ND-CP) stipulating penalties for administrative violations in the field of firefighting and rescue. Of particular note is the imposition of high fines for failing to implement appropriate fire prevention measures in concentrated EV charging areas within buildings. Effective April 20, these regulations respond to new fire risks associated with the rapid popularization of EVs. Standards for securing evacuation routes and maintaining automatic fire alarm systems were also clarified. Source: Báo Chính Phủ / April 1, 2026 Safety regulations are being updated rapidly to keep pace with the spread of new technologies and products, making the latest compliance requirements for corporate facility management more concrete. Unique Business Biochar" from Cacao Husks: A Success Story for the Circular Economy A business that processes agricultural waste—specifically cacao husks—using special equipment to transform them into "Biochar," which can be used as a soil conditioner, is gaining attention. This was introduced as an example of a circular economy that balances waste management with environmental protection. This movement, which goes beyond simple waste reduction to sell by-products as new commodities, symbolizes the "Green Transition" promoted by the government. Support systems for companies with such creative ideas have also become more specific since April. Source: Vietnam Circular Economy Hub / April 10, 2026 "Circular" business models that turn waste into resources are emerging as new business opportunities that allow environmental consideration to coexist with profitability. Edited & Summarized by:   KBC-LINK Editorial Team (compiled with independent perspectives and on-the-ground insights).

In this edition, we've selected the key economic news from Vietnam for the latter half of March 2026 — topics that small and mid-sized foreign businesses and investors keeping an eye on the Vietnamese market will want to know. Note: Editorial comments at the end of each topic are insights and analysis prepared by the KBC-LINK editorial team, based on publicly available information.. This period sees a clear "two-speed economy"  emerging in Vietnam — manufacturing hitting record highs, while domestic consumption shows signs of sluggishness. 📌  Also recommended: Vietnam Economic Highlights — Early March 2026 Vietnam Industry Watch: Key Sectors to Watch Vietnam Economy (General) Q1 2026 Growth: Manufacturing Leads, But Domestic Consumption Lags Vietnam's economy continued to show solid growth in the latest March indicators. The Industrial Production Index (IIP) rose 10.36% year-on-year, with manufacturing alone up 11.48%. The Manufacturing PMI came in at 54.3, reflecting strong new order inflows. However, real growth in private domestic consumption was approximately 4.5% — the lowest in four years. The divergence between a booming export-driven production sector and a cautious domestic consumer base is becoming increasingly pronounced. Source: VietData / March 30, 2026 Vietnam's momentum as a production hub continues to build — but businesses targeting the domestic market should calibrate their strategy to a consumer base that remains cautious about spending. Construction and Infrastructure Bac Ninh's Gia Binh International Airport: Construction Accelerates Amid Rising Material Costs Construction of Gia Binh International Airport in Bac Ninh Province, northern Vietnam, is advancing rapidly. Designed as a smart, sustainable aviation hub, the airport is expected to significantly strengthen logistics networks connecting surrounding industrial zones. Meanwhile, the Ministry of Construction has reported urgent measures to the government to address sharp increases in construction material and transport costs driven by volatility in global fuel prices amid ongoing Middle East tensions. Public investment continues to support active infrastructure development. Source: Ministry of Construction (MOC) / March 19, 2026 Logistics infrastructure expansion presents real opportunity — but external factors driving material cost volatility deserve close attention for project timelines and budgets. Long Thanh International Airport: Four Access Road Projects Urged to Accelerate Dong Nai Province's People's Committee has called on relevant authorities to expedite four provincial road projects (including Routes 769 and 773) to improve access to Long Thanh International Airport, currently under construction. These roads will form a critical network linking the airport with surrounding areas and Ho Chi Minh City's Ring Road 4. Some projects are targeting groundbreaking in Q2 2026, with infrastructure development being fast-tracked to align with the airport's planned opening. Source: Vietnam.vn (Báo Đồng Nai) / March 29, 2026 Road network improvements beyond the airport itself could significantly change the logistics and accessibility profile of nearby industrial zones and distribution facilities. Manufacturing Shift Toward High Value-Added Manufacturing: Major European Investment in Clean Energy Vietnam is making a clear pivot from assembly-based production toward high value-added manufacturing, including semiconductors and high-tech sectors. At an EU-Vietnam business forum held in Hanoi in March, an investment package exceeding €560 million was announced, targeting energy transition and sustainable infrastructure development. This initiative aims to upgrade local supply chains and meet growing clean energy demand, advancing Vietnam's alignment with global environmental standards. Source: Vietnam.vn / March 24, 2026 For foreign companies with strengths in low-environmental-impact operations or advanced manufacturing technologies, there are growing opportunities to participate in Vietnam's shift toward quality-driven growth. Agriculture Rice Exports: Strong Global Demand, But Logistics Costs and Delays Create Headwinds Vietnamese rice exports remain strong in volume terms, supported by robust demand from the Philippines and China. However, rising international freight rates and insurance premiums — driven by the ongoing Middle East situation — are beginning to affect exporters' margins and delivery schedules. In some cases, delivery times have extended by 10–15 days, prompting exporters to renegotiate contracts or take a more cautious approach to new orders. The government continues to push a shift toward premium fragrant rice varieties as a branding strategy to offset rising costs. Source: Vietnam Plus / March 28, 2026 As Vietnamese agriculture transitions toward quality-focused production, interest is growing in freshness preservation, advanced processing technologies, and efficient logistics solutions. Technology & Environment Carbon Credit Trading: Legal Framework for Vietnam's First Exchange Takes Shape The Vietnamese government has enacted Decree 29/2026/ND-CP, establishing the legal framework to operate the country's first carbon credit exchange, with a trading system to be built on existing securities market infrastructure. A pilot allocation of emission quotas is underway for 2025–2026, marking concrete progress toward Vietnam's 2050 net-zero target. Companies with high emissions will be required to manage and report their carbon output through a transparent digital trading system. Source: Vietnam Briefing / March 29, 2026 As environmental compliance shifts toward a market-based mechanism, this creates a new business foundation for companies with capabilities in environmental IT and green technology. Fire Safety, Disaster Prevention & Rescue Ho Chi Minh City: New Disaster Prevention Standards for Residential Construction Take Effect New disaster prevention standards for residential building construction came into effect in Ho Chi Minh City on March 15, 2026. Requirements have been specified regarding building structures, evacuation routes, and material selection to minimize flood and fire risks in urban areas. High-rise condominiums and densely populated residential areas are the primary targets, with safety compliance becoming a key criterion for development approvals. Source: Vietnam News / March 12, 2026 (effective March 15, 2026) While stricter standards add to construction costs, they could also create a tailwind for Japanese companies with advanced disaster prevention and mitigation technologies seeking adoption in local projects. Edited & Summarized by:   KBC-LINK Editorial Team (compiled with independent perspectives and on-the-ground insights).