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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