Vietnam’s International Financial Center in HCMC launched

The Vietnam International Financial Center in Ho Chi Minh City (VIFC-HCMC) was launched on Wednesday, with the opening ceremony attended by Prime Minister Pham Minh Chinh.

The country has adopted a “one center, two destinations” model for the IFC, with hubs in HCMC and Danang.

On January 9, it launched the IFC in the central city of Danang. The center is designed to focus on digital finance, sustainable finance, and controlled regulatory sandboxes for new financial products and business models. Twelve companies, including several foreign-invested firms, have officially joined the center in Danang.

Meanwhile, the HCMC hub will serve as a large-scale financial gateway, focusing on equities, bonds, banking, fund management, and listing services, and acting as a bridge connecting global capital flows and those from Vietnamese enterprises.

Speaking at the Wednesday ceremony, Chinh said developing the VIFC in HCMC and Danang is both a practical necessity and a strategic choice aimed at channeling capital into priority areas such as strategic infrastructure, core industries, logistics, green transition, and digital transformation.

More importantly, the VIFC will provide modern financial instruments to help Vietnamese companies integrate more deeply into global value chains, he stressed.

“We must not only attract capital, but gradually build a regional and international financial market,” the PM said.

Building a breakthrough institutional framework

The leader said Vietnam has taken initial steps, including the establishment of an aviation finance center, a maritime finance hub leveraging the country’s logistics advantages, and a fintech and innovation center designed to attract advanced digital finance models.

Core institutions, including an executive authority, a specialized court and an international arbitration center, have been launched, establishing a transparent and safe legal framework aligned with global standards.

To ensure the VIFC operates effectively, Chinh called for the swift completion of a breakthrough institutional framework consistent with international standards such as the Organization for Economic Co-operation and Development (OECD) and Basel accords, the prompt removal of legal bottlenecks, and greater decentralization paired with adequate resource allocation, and stronger oversight.

The government will prioritize the development of digital infrastructure and green financial infrastructure, step up financial security, and deploy artificial intelligence and big data in risk supervision, he pledged.

A periodic monitoring mechanism will track specific metrics, including capital inflows, the number of participating institutions and transaction volumes, the PM added.

Chinh instructed the ministries of justice and finance, along with the State Bank of Vietnam, to coordinate with the Supreme People’s Court to ensure the dispute resolution system operates effectively from the outset, noting the government will establish an advisory panel for the executive council of the VIFC, including international experts.

HCMC and Danang were asked to fast-track investment in dedicated VIFC headquarters, roll out a regulatory sandbox for new financial products, and propose competitive incentives to attract at least 50 international financial institutions within the first three years.

The leader also called for 100% of administrative procedures to be digitalized at competitive cost.

Danang was tasked with leveraging its strengths to develop a complementary hub focused on maritime finance and logistics, while accelerating administrative reforms to create an investment environment comparable to HCMC.

In parallel, authorities need to step up high-quality workforce training and deepen international cooperation to attract financial and technology experts to operate the center.

Domestic firms must not stand aside

Chinh called on the business community, particularly domestic enterprises and overseas Vietnamese, to take an active role, framing the initiative as an opportunity for their own expansion.

International investors were encouraged to broaden their footprint, transfer administration technology, and engage more deeply in key pillars including aviation, maritime services and fintech.

The leader said large domestic conglomerates and banks would become founding members, tapping the VIFC’s services to raise international capital, issue bonds, manage risks, push ahead with the greening and digitalization of their operations.

For small and medium-sized enterprises, particularly startups, he said, the sandbox mechanism will provide an environment to test new products and collaborate with foreign partners to enhance competitiveness.

“This is the time for domestic businesses to demonstrate Vietnamese ingenuity, resilience and culture, turning the VIFC in HCMC and Danang into a new growth engine,” the PM said.

Following the merger with Ba Ria-Vung Tau and Binh Duong provinces last July, the new HCMC is classified as a special city, covering about 6,772 square kilometers with a population of more than 14 million.

The city is restructuring its development space under a multi-polar, integrated and “super-connected” approach, mobilizing all available resources to build a modern and synchronized urban infrastructure system.