VNREDSat-1 is the first Vietnamese satellite enabling the survey of environmental parameters, such as vegetation and water coverages or surface water quality at medium spatial resolution (from 2.5 to 10 m depending on the considered channel). The New AstroSat Optical Modular Instrument (NAOMI) sensor on board VNREDSat-1 has the required spectral bands to assess the suspended particulate matter (SPM) concentration. Because recent studies have shown that the remote sensing reflectance, Rrs(λ), at the blue (450–520 nm), green (530–600 nm), and red (620–690 nm) spectral bands can be assessed using NAOMI with good accuracy, the present study is dedicated to the development and validation of an algorithm (hereafter referred to as V1SPM) to assess SPM from Rrs(λ) over inland and coastal waters of Vietnam. For that purpose, an in-situ data set of hyper-spectral Rrs(λ) and SPM (from 0.47 to 240.14 g·m−3) measurements collected at 205 coastal and inland stations has been gathered. Among the different approaches, including four historical algorithms, the polynomial algorithms involving the red-to-green reflectance ratio presents the best performance on the validation data set (mean absolute percent difference (MAPD) of 18.7%). Compared to the use of a single spectral band, the band ratio reduces the scatter around the polynomial fit, as well as the impact of imperfect atmospheric corrections. Due to the lack of matchup data points with VNREDSat-1, the full VNREDSat-1 processing chain (atmospheric correction (RED-NIR) and V1SPM), aiming at estimating SPM from the top-of-atmosphere signal, was applied to the Landsat-8/OLI match-up data points with relatively low to moderate SPM concentration (3.33–15.25 g·m−3), yielding a MAPD of 15.8%. An illustration of the use of this VNREDSat-1 processing chain during a flooding event occurring in Vietnam is provided.