International financial center to significantly facilitate global capital access for Vietnam: StanChart exec

An international financial center could significantly improve access to global capital for Vietnamese enterprises, especially if it is managed by a unified regulatory body, said Nguyen Thuy Hanh, CEO and head of Banking and Coverage at Standard Chartered Vietnam.

Hanh made the statement at a capital management forum hosted by Standard Chartered in Ho Chi Minh City on Tuesday. She emphasized two major advantages of successfully establishing an international financial center (IFC) in the city.

First, an IFC in Vietnam would open up significant opportunities for both domestic and international businesses and financial institutions. International financial centers are known for low operating costs, transparent and flexible regulatory frameworks, and business-friendly environments.

Companies setting up headquarters or branches within Vietnam’s IFC could benefit from preferential tax policies, simplified compliance procedures, and more efficient business operations.

Additionally, the range of financial products and services would expand to include digital banking, digital currencies, commodity index trading, greater flexibility in foreign exchange transactions, centralized cash flow management - still uncommon in traditional banking - and advanced risk management tools for commodity trading.

Second, from a legal compliance perspective, a unified management agency overseeing the IFC would help standardize and simplify regulatory requirements, further accelerating transaction processing. Furthermore, capital flows into and out of the center could be more flexible than those in the broader economy.

Another key advantage for investors is the potential application of international ESG (environmental, social, and governance) standards and frameworks such as IFRS (International Financial Reporting Standards).

At present, these standards are not fully implemented across Vietnamese banks. If applied in the IFC, they could unlock access to green financing from both domestic and international investors, supporting sustainable development initiatives across Vietnam and the region.

On the topic of the U.S. reciprocal tax applied to Vietnam, Hanh noted that the policy, announced in April, drew widespread attention. The Vietnamese government responded swiftly, engaging in negotiations with U.S. counterparts to safeguard the interests of both countries' business communities.

Over the past two months, Standard Chartered Vietnam has worked closely with clients to develop contingency plans for a range of possible tax scenarios. Encouragingly, initial negotiation rounds between the U.S. and Vietnam have shown positive signs. Thanks to proactive planning, none of the bank’s clients have faced serious risks to date, according to Hanh.

Vietnamese businesses are now approaching such challenges with greater preparedness - no longer reactive, but equipped with strategies including supply chain adjustments, market diversification, and financial restructuring to mitigate the effects of evolving tax policies, she added.