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Through the introduction of the Vietnam Cooperative Alliance (VCA), KBC-LINK conducted an on-site inspection of the chia seed project operated by Global Green House Cooperative (GHCOOP). The visit took place in Muong Kim Commune, Lai Chau Province, located in the northwestern highlands of Vietnam. In this mountainous region, where ethnic minority communities practice traditional natural farming, the combination of their methods with technical support from the Center for Technology Transfer and Agricultural Extension (CETDAE) has enabled the cultivation of high-quality chia seeds. On a cold, rainy morning in November, we departed Hanoi shortly before 5:00 a.m. We made smooth progress on the highway at first, then crossed multiple fog-covered mountain roads, passed through Sapa—famous for its terraced rice fields—and continued over another mountain pass before heading to Muong Kim Commune in Lai Châu Province. We arrived at the People's Committee of Muong Kim Commune, located in a “basin above the clouds,” at around 3:00 p.m. After exchanging greetings with the committee officials and members of the Center for Technology Transfer and Agricultural Extension (CETDAE) who had come from Hanoi, we were guided to the chia seed fields, reaching the site just before 4:00 p.m. We received a detailed explanation from Mr. Nguyen Van Thang, Chairman of the People's Council. Surrounded by mountains, the unique highland plateau of the area was immediately apparent, giving us a strong sense of the region’s distinct character as a production area. Although the harvest season had already passed, the committee later shared in their assembly hall the breathtaking scenery of delicate purple-blue chia flowers spreading across the highlands. Why has a Central/South American superfood evolved into high-quality chia seeds in Vietnam’s northwestern mountains? Behind this success lies more than a favorable climate. It is the result of a multi-layered ecosystem involving ethnic minority traditions, local government support, and advanced agricultural science. 🏞️ Fusion of Tradition and Science Ethnic minority natural farming meets national agricultural technology Muong Kim Commune is home to ethnic minority communities that have preserved natural farming methods for generations, not using chemical fertilizers or pesticides. Their knowledge and dedication help maintain farmland that is close to organic standards—an ideal foundation for cultivating high-quality chia. This is complemented by technical assistance from the Vietnam Academy of Agricultural Sciences (VAAS), which introduced modern chia cultivation techniques and management know-how. The synergy of traditional natural farming and scientific agricultural practices has enabled the successful production of premium chia seeds, unlocking the full potential of this unique region. 🔬 Scientific Validation A climate similar to chia’s native habitat and joint studies proving high Omega-3 content Behind today’s thriving, high-quality Chia fields lie the enduring marks of those who laid the foundation for the Chia plant to take root in Vietnam. At the forefront is Ms. Vu Thi Thanh Huyen — General Director of the Global Green House Cooperative and founder of the ChicoChia brand — who has led the project from its very first steps: from managing seed varieties, overseeing cultivation and production, to delivering the final products into the hands of consumers. Accompanying her pioneering journey is a dedicated team of scientists and colleagues who, since 2012, have tirelessly researched, refined, and established an organic farming process that meets international standards. Their commitment, perseverance, and belief in Vietnamese agriculture have shaped the vibrant Chia fields we see today. ChicoChia brand went through a strict and rigorous testing to become an official member of the Vietnam Association for Anti-Counterfeiting and Trademark Protection (VATAP), also honored of the Top 10 prestigious national brands in 2025. https://chonghanggiavatap.vn/ The nutritional composition of Chia seeds is tested by the Institute of Science Technology and Environment (INOSTE), the Vietnam Academy of Social Sciences (VASS), the National Institute of Nutrition (VDD), and the National Institute of Medicinal Materials (NIMM). https://inoste.vn/ https://vass.gov.vn/ https://viendinhduong.vn/ http://vienduoclieu.org.vn/ 🌱 Creating Value: From Agricultural Product to Functional Food The project was initiated by Ms. Vu Thi Thanh Huyen, President of GHCOOP and a devoted admirer of chia flowers. By leveraging the collaboration of ethnic minority communities, local authorities, and national-level technical support, this circular project brings together regional resources, cultural heritage, and technology to add high value to chia seeds. It transforms agricultural products from mere raw materials into functional foods, creating a system that returns benefits to the local economy and contributes to the health and well-being of the community. 📈 Future Development: Expanding Impact Across Regions and Communities GHCOOP is working to expand organic chia farming areas, enhance processed product lines, enter the Halal food market, and generate employment to reduce poverty in ethnic minority and mountain communities. With chia cultivation at its core, the organization is steadily advancing regional revitalization, job creation, and health-focused product development. If you are interested in this chia project, we encourage you to visit the ChicoChia Experience Center  at: 39 Khuc Thua Du, Cau Giay, Hanoi 🌎 The Story and Future of Vietnam-Grown Chia Originally from Central and South America, chia seeds are now unlocking new possibilities in the northwestern highlands of Vietnam. The traditions of ethnic minority communities, the blessings of fertile land, administrative support, and scientific technology all intersect to create the unique value of Vietnam-grown chia. KBC-LINK continues its mission to connect the potential of Vietnam’s regions with global markets. Together with GHCOOP, we are now seeking "import" partners in Japan and abroad to support the international expansion of this high-quality “Vietnamese Chia.” For companies interested in participating in this project or learning more, please feel free to contact us: https://kbc-link.com/agriculture/ghcoop-chicochia?lang=en#contact-information

Here is a curated summary of Vietnam’s economic developments in the second half of November 2025 (Nov 10–30), based on multiple reliable sources. We highlight 10 key updates across economic indicators, investment activity, corporate developments, infrastructure, and industrial trends — valuable for SMEs and investors from Japan and overseas. Vietnam Economic News – 10 Key Highlights Manufacturing PMI stands at 53.8, continuing its expansion trend Vietnam’s Manufacturing Purchasing Managers’ Index (PMI) reached 53.8 in November 2025, slightly lower than October’s 54.5 but still well above the 50-point expansion threshold, signaling a steady recovery. Natural disasters cause severe impact — 409 deaths/missing, economic loss approx. JPY 506 billion From January to November 2025, natural disasters resulted in 409 deaths/missing persons, with estimated economic losses reaching VND 85 trillion (approx. JPY 506 billion). Concerns are rising over damage to infrastructure and supply chains. Rental yield hits record low in Ho Chi Minh City Residential rental returns in major cities — especially Ho Chi Minh City — have declined to historic lows, suggesting oversupply and persistent high property prices. Tax regime to change for sole proprietors earning under VND 3 billion annually Tax authorities announced new taxation frameworks that will also apply to sole proprietors earning below VND 3 billion (approx. JPY 18 million), drawing attention from micro and small business operators. Japanese company signs tourism human-resource training agreement with Ha Long University Japan's Nachikatsuura Tourism Organization signed a partnership agreement with Ha Long University in Quang Ninh Province to develop tourism professionals, supporting quality enhancement of the sector. Global manufacturers consider new factory sites in Central Vietnam Reports indicate several major global manufacturers are evaluating Vietnam’s central coastal region as a new production base, potentially accelerating investment in industrial parks in the region. Vietnamese airlines expand international route networks Major carriers are launching new routes and increasing frequencies to destinations across Asia, Europe, and North America — aiming not only to attract tourists but also to capture business travel demand. Offshore IT development demand from Japan continues to grow Due to yen depreciation and rising labor costs in Japan, demand for system development and BPO services outsourced to Vietnamese IT firms is increasing significantly. Foreign investment surges in renewable energy projects Large-scale solar and wind power projects continue to attract foreign direct investment (FDI), particularly from Europe and other Asian markets. Acecook Vietnam recognized for 10 consecutive years as a top workplace Acecook Vietnam, one of the leading Japanese food processing companies, has been selected for the “Best Places to Work” ranking for the 10th year in a row — reflecting strong employment stability and workplace quality. These updates are compiled from major news agencies and official sources reporting on Vietnam’s economy and social trends. While PMI growth signals continued economic resilience, disaster impact and real estate fluctuations present notable risks to the business environment. FDI remains active not only in manufacturing but also in renewable energy, suggesting ongoing diversification in Vietnam’s economic landscape. Sources: VIETJO OBDA Vietnam Groove Vietnam.vn Other Vietnamese news sites Edited & Summarized by: KBC-LINK Editorial Team (presented with our unique perspective and local insights)

We bring you a selection of key developments in the Vietnamese economy from multiple reliable sources for the first week of November 2025 (Nov 3–9). Here are 10 important news items that Japanese and foreign SMEs and investors should watch, covering economic indicators, investment trends, corporate activities, infrastructure developments, and industry news. Vietnam Economic News – 10 Key Highlights Vietnam's industrial production rises 11%, while automobile manufacturing declines for the first time in 16 months October 2025 inflation rate at 3.25%, slowing from the previous month but still at a high level Retail sales in October increase 7.2%, yet remain at the lowest level in a year Typhoon No. 25 approaches central Vietnam coast, affecting take-offs and landings at six airports Heavy rain and high tides in Ho Chi Minh City cause flooding on roads Vietnam's two major airlines report Q3 2025 losses, as costs rise across both public and private carriers Vingroup posts a Q3 2025 loss, with expanding deficits in its electric vehicle business Foreign Direct Investment (FDI) exceeds $23.7 billion in Jan–Sep, with large projects from China and Singapore standing out Fujifilm plans to expand its AI health check centers in Ho Chi Minh City, targeting the 10th location by the end of 2025 Manufacturing Purchasing Managers’ Index (PMI) rises to 54.5, marking the highest level in 14 months These news items are compiled based on information from leading news agencies and official sources reporting on the Vietnamese economy and society. The updates cover industrial production, inflation, retail sales, and foreign investment trends, reflecting the overall health of the economy. Infrastructure developments and natural disasters are also key factors to consider for the business environment. Sources: NNA - https://www.nna.jp VIETJO - https://www.viet-jo.com The Voice of Vietnam - https://vovworld.vn/en-US JETRO - https://www.jetro.go.jp Poste Vietnam - https://poste-vn.com Other Vietnamese news sites Edited & Summarized by: KBC-LINK Editorial Team (presented with our unique perspective and local insights)

Rethinking “the time to read” during Japan’s Reading Week (October 27 – November 9) In an era where smartphones consume much of our time, a café in Ho Chi Minh City has launched a bold challenge: rewarding customers for reading books. “ Sam-Art Books & Coffee ” has introduced an innovative program that pays visitors who complete 100 hours of reading—a concept that is sparking conversation across Vietnam.    In Japan, the rise of smartphones and social media has accelerated the decline in reading, especially among younger generations. According to a 2023 survey by Japan’s Agency for Cultural Affairs, 63% of respondents said they did not read even one book a month—the highest percentage ever recorded. Moreover, 69% said their reading time had decreased, most often citing “time spent on digital devices” as the reason.    As short-form posts and videos dominate daily life, opportunities to “think deeply and reflect” are diminishing. This trend is not limited to youth—it extends to adults as well—raising national concern over the erosion of print and reading culture.    Against this backdrop, Sam-Art Books & Coffee launched its eye-catching “100-Hour Reading Challenge.” Customers who spend 100 hours reading inside the café receive a reward of 500,000 VND (approximately 2,000 JPY). The café provides a peaceful environment with comfortable seating and an extensive collection of books, creating a space where people can truly reconnect with reading. The goal is simple yet profound: to turn reading into a joyful habit by merging culture and business.    This initiative is more than just a reward system—it’s a creative prompt that helps people reclaim time for books. As Japan enters the season of reading, this story from Ho Chi Minh City offers timely inspiration for societies struggling with digital distraction.  KBC-LINK’s Perspective Although this is a small initiative by a single café, it highlights an important mindset: how to reinterpret social issues as opportunities for innovation. Rather than lamenting problems such as “declining reading habits” or “digital dependence,” we can view them as catalysts for creating new business models and social systems. At KBC-LINK, we believe such shifts in thinking will drive the societies and markets of the future. We will continue to introduce real examples of how culture, business, and social issues intersect in Vietnam. Sources The Yomiuri Shimbun Editorial: “Declining Reading Habits – Efforts Needed to Preserve the Foundation of Knowledge,” September 18, 2024 — https://www.yomiuri.co.jp/editorial/20240918-OYT1T50005/ DTiNews:  “Ho Chi Minh City Café Pays Customers to Read Books,” October 16, 2025 — https://dtinews.dantri.com.vn/lifestyle/ho-chi-minh-city-cafe-pays-customers-to-read-books-20251015162535054.htm Sam-Art Books & Coffee  — https://www.facebook.com/samartbooksandcoffee/about

— Why Japanese Companies Are Now Required to Disclose and What It Means for Vietnam What Does “Sustainability Disclosure” Mean? You may have seen the term “Sustainability Disclosure”  appearing more frequently in corporate websites or business news.In simple terms, it refers to how companies publicly report their initiatives in Environment , Social , and Governance (ESG)  — key factors that show how responsibly and transparently a company operates. Typical disclosure items include: CO₂ emissions and energy-saving initiatives Labor conditions and respect for human rights Transparency across the supply chain Corporate governance and internal control systems In the past, such efforts were often shared voluntarily under CSR (Corporate Social Responsibility) .However, these non-financial factors are now considered essential information  that directly influences a company’s valuation and investors’ decisions. From 2026: Disclosure Becomes Mandatory in Japan Starting in FY2026 (for fiscal years ending March 2027) , Japan will make sustainability disclosure mandatory for large companies listed on the Tokyo Stock Exchange Prime Market  with a market capitalization of over 3 trillion yen  (around 70 firms). By the following year, the scope will expand to those valued at over 1 trillion yen .This means Japan’s major corporations will soon be required to make their ESG activities visible and accountable to investors worldwide. Why Is Disclosure Becoming Mandatory Now? Globally, issues such as decarbonization , human rights , and corporate transparency  have gained unprecedented importance.Traditional financial data alone can no longer represent a company’s long-term sustainability or risk profile.That’s why new reporting frameworks are emerging that integrate both financial  and non-financial  information. Key drivers include: The International Financial Reporting Standards (IFRS)  introducing new sustainability standards (IFRS S1 / S2) Gradual adoption of these standards across countries, covering roughly 60% of global GDP Japan’s upcoming introduction of its own SSBJ Sustainability Standards Why It Matters to Vietnamese Companies You might think, “This is just for Japanese listed companies.”But in reality, these requirements extend across the entire supply chain . To meet disclosure obligations, Japanese corporations will increasingly request ESG-related data from their suppliers and partners , including: Energy consumption and CO₂ emissions during production Labor hours, safety management, and human rights practices Environmental data such as waste and water usage In other words, Vietnamese manufacturers, processors, and logistics providers  will also become part of this sustainability reporting ecosystem. How to Start Preparing Based on KBC-LINK’s analysis, we recommend the following first steps: Visualize your environmental data  — such as energy use and emissions. Clarify labor and safety management rules  within your organization. Consider international certifications  such as ISO14001, Occupational Safety and Health standards (OSHA), or ESG reporting guidelines. Build a clear communication process  for sharing sustainability data with clients and partners. These steps not only serve as the foundation for sustainability disclosure but also strengthen your credibility as a trusted business partner. KBC-LINK’s Perspective Sustainability-driven management is no longer just a theme for Japanese corporations —it is becoming a shared challenge and opportunity  for all Japan–Vietnam business relations. At KBC-LINK , we aim to explore these global trends together and share practical insights and ideas  that help both Japanese and Vietnamese companies build sustainable partnerships. References ITmedia: “Why Sustainability Disclosure Will Define Future Corporate Value” (Oct 21, 2025)　 https://www-itmedia-co-jp.translate.goog/business/articles/2510/21/news045.html?_x_tr_sl=ja&_x_tr_tl=en&_x_tr_hl=ja&_x_tr_pto=wapp Vietnam.vn : “For a Safer Workplace Environment” (May 22, 2025) https://baophutho.vn/vi-mot-moi-truong-lam-viec-an-toan-233108.htm Edited by KBC-LINK Editorial Team

According to PwC Vietnam’s latest survey, 89% of Vietnamese companies plan to implement ESG (Environmental, Social, and Governance) initiatives within the next 2–4 years, a significant increase from 80% three years ago. Foreign-invested (FDI) companies are taking a leading role, reflecting growing interest in corporate sustainability. ESG Initiatives ESG stands for Environment, Social, and Governance, representing a framework for companies to operate sustainably while considering environmental protection, social responsibility, and transparency in management. PwC Vietnam’s “2025 ESG Practices Survey” shows that 89% of surveyed companies plan to commit to ESG initiatives over the next 2–4 years, with only 11% having no plans. More than half of the companies have already started ESG activities, with 71% of FDI companies following international standards. In contrast, many domestic companies face internal challenges such as strategy development, lack of expertise, and limited systems for measurement and reporting. While listed companies are advancing ESG integration, private companies still have low adoption rates. Vietnam’s export-driven economy makes compliance with international ESG standards essential for maintaining competitiveness. Companies need to aim for sustainable growth through measures such as redesigning business models, reducing carbon emissions, and digital transformation. PwC experts emphasize that “ESG is not merely about regulatory compliance; it is a critical framework that helps companies prepare for the future through risk management and strategic integration.” KBC-LINK’s Perspective In Vietnam, ESG initiatives are likely to directly impact corporate trust and competitiveness. Aligning with international standards can improve operational efficiency, reduce carbon footprints, and strengthen relationships with local partners—creating opportunities for business growth in the Vietnamese market. As an example, Foamdearing Co., Ltd.  from Japan contributes to improving energy efficiency and reducing CO₂ emissions in factories and residential buildings through energy-saving and environmentally friendly products such as their “Kama Insulation Sheet.” Companies like Foamdearing, which proactively address environmental challenges, serve as important models for ESG-driven business practices in Vietnam. Source: HTV News: August 19, 2025 — https://htv.com.vn/pwc-89-dai-dien-doanh-nghiep-da-hoac-dang-co-ke-hoach-cam-ket-esg-trong-vong-2-4-nam-toi-222250921103255199.htm PwC Vietnam:  August 19, 2025 — https://vnexpress.net/doanh-nghiep-viet-truong-thanh-hon-trong-thuc-hien-sang-kien-ben-vung-4940803.html Foamdearing Co., Ltd.  —   https://www.kbc-link.com/en/manufacturing/foamdearing-energy-saving-insulation Edited by:  KBC-LINK Editorial Team

Press Release:　A New Bridge for Japan-Vietnam Business! October 1, 2025 Kichietsu Bussan Co., Ltd. Meeting at Vietnam Cooperative Alliance (VCA) On September 23, 2025, KBC , which operates KBC-LINK platform , visited the headquarters of the Vietnam Cooperative Alliance (VCA) . The meeting was attended by Vice President Mr. Dinh Hong Thai, as well as representatives from the Trade and International Cooperation Department and the Institute of Science, Technology and Environment. During the meeting, KBC shared its extensive network and business experience in both Japan and Vietnam, and exchanged views on the potential for international expansion of Vietnamese cooperative products, including entry into the Japanese market. Japan’s market is characterized by high standards of quality and food safety, as well as a growing interest in clean and organic products. This collaboration confirmed significant opportunities to expand the export of high-quality regional specialty products produced by Vietnamese cooperatives. VCA also introduced key events and international activities planned for 2025, including the operation of the e-commerce platform “ vca.mart ,” which supports ethnic minority communities, as well as initiatives by Global Green Cooperative (HTX Nhà Xanh Toàn Cầu) for export-oriented products such as chia seeds. The KBC-LINK  team will leverage these initiatives through the newly launched KBC-LINK  platform to support seamless information sharing and business opportunities among cooperatives and companies in Vietnam, Japan, and the international community. Together with VCA and individual cooperatives, KBC-LINK team aims to deliver green, high-quality Vietnamese products to the Japanese market, actively support the introduction of Japanese products to Vietnam, and serve as a sustainable bridge promoting bilateral business. The KBC-LINK team will continue to strengthen its collaboration with VCA , supporting the international expansion of cooperative products and fostering a lasting partnership that opens new possibilities for Japan-Vietnam business. For any questions regarding this article, please feel free to contact us via our inquiry form.

Da Nang, the central hub of Vietnam, has witnessed remarkable growth in both tourism and investment in 2025. Within just half a year, the city’s skyline has visibly transformed with a surge in new construction, while tourism demand has rebounded strongly. Alongside these developments, industrial and infrastructure projects are advancing, positioning Da Nang as a city of growing importance powered by the dual engines of “tourism + industrial investment.” Dragon Bridge (Cầu Rồng) over the Han River in Da Nang Tourism Recovery In the first eight months of 2025, Da Nang welcomed an estimated 12.8 million visitors , marking a robust 20.8% year-on-year increase . Of this figure, international arrivals reached 5 million (+23.4%) , while domestic tourists totaled 7.8 million (+19.1%) . In August alone, nearly 1.97 million visitors  came to the city, including 671,000 international travelers . Tourism revenue has also surged. Accommodation and food services generated VND 36.3 trillion (approx. USD 1.43 billion)  from January to August, accounting for 21.6% of the city’s retail and service revenue . Accommodation revenue rose 31.7% , while food services climbed 22.1%  year-on-year. Infrastructure and Investment Attraction Da Nang is actively pushing forward with the development of a Free Trade Zone (FTZ)  and strengthening efforts to attract investment in port logistics  and high-tech industries . The expansion of Lien Chieu Port  serves as a cornerstone to support import-export activities. Additionally, the establishment of the Hoa Ninh Industrial Park  and the planned Da Nang International Financial Center (DNIFC)  are drawing increasing attention from global investors. On the industrial front, Da Nang is emerging as a semiconductor and AI hub , already hosting more than 20 semiconductor-related companies. With high-tech industries as its backbone, the city is accelerating the transformation of Central Vietnam’s industrial structure. Expansion of Air Routes Da Nang is expanding cooperation with both domestic and international airlines to strengthen its global flight network . While maintaining existing direct routes to Southeast Asia and Northeast Asia, the city is also planning new long-haul connections to the United States, Europe, Australia, Russia, India, and the Middle East . These developments are expected to boost international exchanges for both tourism and business. KBC-LINK’s Perspective When visiting Da Nang in both March and September 2025 , we observed striking changes. Within only half a year, new construction projects had significantly increased, visibly reshaping the city’s skyline. As new hotels and commercial facilities sprang up, restaurants and hotels began to regain their vibrancy with the returning flow of tourists. However, through local interviews, it also became clear that changes in government regulations and tax policies are still impacting small-scale businesses . While many small retailers and service providers remain cautious, export-oriented manufacturers appear to be regaining momentum , supported by the shift of production from China. Da Nang today is more than just a tourism hotspot. With its growing port infrastructure and high-tech industrial base , it is increasingly positioning itself as an industrial city . For companies considering entry into Vietnam, understanding this dual identity of tourism and industrial investment  will be essential. Sources VietnamPlus,  August 11, 2025 — https://en.vietnamplus.vn/da-nangs-tourism-sector-sees-new-prospects-following-mergence-of-administrative-units-post324352.vnp DANANG NEWS, August 20, 2025 — https://en.baodanang.vn/da-nang-welcomes-12-8-million-visitors-in-8-months-of-2025-3300752.html VietnamPlus, September 11, 2025 — https://en.vietnamplus.vn/da-nang-pushes-forward-with-ftz-project-eyes-strategic-investors-post326367.vnp Edited by:  KBC-LINK Editorial Team DaNang #FreeTradeZone #InvestmentClimate #TourismRecovery #VietnamEconomy

The World Bank (WB) released its latest economic update on September 8, projecting Vietnam’s GDP growth at 6.6% in 2025 . Strong export performance in the first half of the year is expected to drive expansion, while weakening global demand and rising trade uncertainties may weigh on growth in the second half. 7.5% Growth in H1, Driven by Exports In the first half of 2025, Vietnam’s economy expanded by 7.5%, outpacing regional peers. Electronics, textiles, and related export industries played a leading role, while manufacturing and logistics services also gained momentum. This robust performance has reinforced confidence among investors and businesses. However, growth is expected to moderate in the latter half of the year as demand in key global markets slows. Impact of Global Slowdown Unavoidable As an export-oriented economy, Vietnam remains highly exposed to external conditions. The WB warns that weaker demand in the U.S., EU, and other key markets, combined with international trade frictions, could put downward pressure on growth. The Bank projects GDP growth to slow to 6.1% in 2026, before rebounding to 6.5% in 2027 as global trade recovers and Vietnam sustains its competitive role as a manufacturing hub. Investment and Reform as Key Drivers To ensure stable growth, the WB highlights several priorities: Accelerating public investment: Expanding infrastructure projects in transport, energy, and urban development to boost domestic demand and employment. Strengthening the financial system: Enhancing banking sector supervision, managing non-performing loans, and maintaining capital market stability. Structural reforms and human capital development: Focusing on high-skilled labor in STEM fields, and expanding investment in research & development (R&D). According to the WB, effective public investment and human capital development will shape Vietnam’s long-term competitiveness. Developing High-Tech Talent – A Long-Term Priority A special section of the WB report emphasizes the importance of developing Vietnam’s high-tech workforce. To achieve its goal of becoming a high-income country by 2045, Vietnam must not only increase the number of STEM graduates, but also nurture a core group of experts capable of leading research, operating laboratories, and turning innovations into market-ready products. KBC-LINK’s Perspective The WB report underscores Vietnam’s resilient growth potential as a global manufacturing destination, while also highlighting the vulnerabilities tied to global economic uncertainty. At KBC-LINK, we view these insights as crucial for businesses considering entry into or expansion within Vietnam. Through information sharing and partnerships with local stakeholders, we continue to support Japanese companies in navigating opportunities and risks in the Vietnamese market. Source:  World Bank Vietnam Economic Update Thuong Hieu va Cong Luan (Electronic Magazine), September 8, 2025 https://thuonghieucongluan.com.vn/wb-du-bao-kinh-te-viet-nam-tang-truong-6-6-nam-2025-a279327.html Vietnam Financial Times, September 8, 2025 https://thuonghieucongluan.com.vn/wb-du-bao-kinh-te-viet-nam-tang-truong-6-6-nam-2025-a279327.html #VietnamEconomy #WorldBank #InvestmentClimate #HumanResourceDevelopment #Innovation #PublicInvestment

Vietnam’s Politburo has announced plans to make energy-saving targets mandatory for each industry and region, applying energy efficiency standards to equipment, machinery, and buildings. This move marks a significant step toward the country’s goal of achieving “net zero” by 2050, while also strengthening national energy security and reducing greenhouse gas emissions. Note: “Net zero” means that the total amount of greenhouse gases released is balanced by the amount removed from the atmosphere, such as through renewable energy use or carbon absorption measures. Based on the national vision toward 2045 and Resolution No. 70, the Politburo has set the following targets to be achieved by 2030: Reduce energy consumption by 8–10% compared to the business-as-usual (BAU) scenario Cut greenhouse gas emissions by 15–35%  This will help ease the burden on the power grid, promote more efficient use of resources, and contribute to achieving carbon neutrality by 2050. Note: “Carbon neutrality” means that greenhouse gas emissions are balanced by offsetting measures, such as carbon credits or tree planting, rather than fully eliminating emissions as in “net zero.”   Key Points: Mandatory energy-saving targets:  Specific goals will be set for each industry, sector, and region. Technical standards:  Energy efficiency requirements will be applied to machinery, transportation, and buildings, with low-efficiency and high-emission models phased out. Transport sector:  Fuel economy labels and energy ratings will be required for cars and motorcycles. Hanoi and Ho Chi Minh City plan to begin emissions testing in 2027. Buildings:  Energy-saving measures will be mandatory for buildings with annual energy consumption of 200–300 TOE or more.　 Note:Consuming energy equivalent to 200–300 tons of crude oil per year. One ton of crude oil (about 1,000 liters) provides roughly enough energy to cover one year of electricity for 4–5 average households. Carbon market development:  Introduction of a carbon tax, emission caps, and credit trading mechanisms, with pilot implementation scheduled within this year.   Additionally, the Politburo encourages companies to adopt carbon capture, utilization, and storage (CCUS) technologies, invest in high-efficiency technologies, actively leverage private and foreign capital, and make use of ODA and JETP (Just Energy Transition Partnership) programs.   Background and Changes: Under the previous Resolution 55/2020, the application of energy efficiency standards was limited to energy-intensive industries such as steel and cement manufacturing. Resolution No. 70 expands these standards to a broader range of sectors, including transportation and buildings, while introducing mandatory regulations and clearer responsibilities. KBC-LINK Perspective: For Japanese and foreign companies:  Demand for energy-saving equipment and environmental technologies is expected to grow, presenting opportunities for market entry and investment. For Vietnamese companies:  Compliance with energy efficiency standards may increase costs, but could strengthen long-term competitiveness. From a policy perspective:  Early development of the carbon market will be key, particularly testing the responsiveness of energy-intensive industries. #Vietnam #EnergySaving #RenewableEnergy #CarbonNeutral Sources: Vietnam Politburo Resolution No. 70 (2025); Official materials from relevant ministries, VnExpress, September 4, 2025 https://vnexpress.net/bo-chinh-tri-se-ap-chi-tieu-tiet-kiem-nang-luong-cho-tung-nganh-dia-phuong-4934999.html Ministry of the Environment, Japan – ecojin (Ecojin) https://www.env.go.jp/guide/info/ecojin/eye/20250312.html Edited by:  KBC-LINK Editorial Team

According to the latest survey by S&P Global, Vietnam’s manufacturing output continued to grow in August, marking the fourth consecutive month of expansion. However, a decline in export orders, raw material shortages, and the impact of tariffs leave the recovery outlook uncertain. In August 2025, Vietnam’s manufacturing sector recorded four consecutive months of production growth. However, the pace of growth slowed compared with July, reflecting weaker demand. S&P Global reported that the Manufacturing Purchasing Managers’ Index (PMI)* for August stood at 50.4 , down from 52.4 in July. While a reading above 50 indicates an improvement in business conditions, the strength of the recovery remained modest. Key Survey Findings: New Orders:  After a temporary increase in July, new orders fell again in August. Export orders have declined for ten consecutive months, affected by U.S. tariff issues. Employment:  In line with falling new orders, employment contracted for the 11th consecutive month, resulting in excess production capacity. Inventory & Production Activity:  Finished goods inventories decreased, while purchasing of raw materials rose for the second consecutive month in anticipation of future demand improvement. Supply Chain:  Lead times extended due to raw material shortages. Input costs recorded the highest growth for 2025. Selling Prices:  Reflecting rising costs, selling prices increased for the third consecutive month. Business Sentiment:  Confidence recovered to its highest level in six months but remained below average, with concerns about the global economy limiting optimism. Andrew Harker, Economic Director at S&P Global, commented: "While it was positive to see output expand again during August, a renewed fall in new orders calls into question how long firms will be able to keep increasing production. The drop in new sales was led by exports, which decreased solidly again as issues around tariffs continued to impact the sector." “In August, it was encouraging that production expanded, but continued declines in new orders raise questions about sustaining output growth. Stabilization of tariff issues and a recovery in demand are expected going forward.” *PMI = Purchasing Manager’s Index. The PMI is a leading indicator that provides early insights into economic trends, often ahead of other macroeconomic indicators such as GDP. It gauges business sentiment among purchasing managers in manufacturing and services, who are closely aware of product demand and client trends. The PMI surveys them on: Production levels Changes in new orders Backlogs of orders Employment levels Quantities and prices of purchased raw materials KBC-LINK Perspective: For Japanese companies:  While raw material shortages and rising costs pose risks, there are opportunities for efficient supply and technology provision. For the Vietnamese market overall:  For export-dependent manufacturers, tariff policies and international logistics will be key factors shaping future growth. Talent and productivity:  There is room for improvement, and collaboration with Japanese firms can enhance competitiveness. #VietnamManufacturing #Exports #Tariffs #PMI #JapanVietnamCooperation Sources: S&P Global Vietnam Manufacturing PMI Survey (August 2025), The Investor, September 4, 2025 https://theinvestor.vn/vietnams-production-rises-for-four-straight-months-new-export-orders-continue-to-fall-sp-global-d16877.html Vietnam News, September 4, 2025 https://vietnamnews.vn/economy/1724533/viet-nam-s-manufacturing-sails-with-cautious-optimism-amid-challenges.html Daiwa Securities Glossary: Financial & Securities Terms  https://www.daiwa.jp/glossary/YST0537.html Edited by:  KBC-LINK Editorial Team