British commitment shines with Vietnamese partnerships

Alexandra Smith, british consul general in Ho Chi Minh City

Further investments in sustainable infrastructure, digital transformation, and skills development will be key to unlocking its full potential. The city’s focus on innovation and its strong entrepreneurial spirit are also significant assets. We anticipate continued growth in sectors like technology, finance, education, healthcare and renewable energy, creating further opportunities for collaboration between the UK and Vietnam.

Danang also has a lot of potential as a regional financial centre; international investors and financial funds from the United States, Singapore, the Middle East, Switzerland and, of course, the UK have shown great interest in developing the city’s financial centre with a focus on innovation, green finance, fintech, and trade finance.

The aim is to leverage Danang’s strategic geo-economic location along the Indo-Pacific corridor and its favourable urban infrastructure and environment to create a unique synergy between traditional financial services and cutting-edge technologies. This would enhance collaboration, connectivity, and integration into shifting global value chains.

The UK is, of course, home to the top financial centre in the world, London, built on decades (and perhaps centuries) of experience in sound governance, transparency, and innovation. The UK government and regulators have worked closely with industry and other key stakeholders to achieve this position.

An approach has been underpinned by high standards, a robust rules and principles-based regulatory framework, a strong ecosystem of financial and related professional services, common law, and a vibrant fintech infrastructure that supports all other economic activity. We combine deep expertise, built over years, with a forward-looking approach to adopting and championing cutting-edge technology and approaches.

The UK and its financial and professional services industry, which has longstanding and strong ties in Vietnam with firms such as HSBC, Standard Chartered, Prudential and Dragon Capital, is well-placed to offer the expertise to develop a financial ecosystem and help promote good governance and rule of law.

The improved regulatory and business environment will, in turn, enable sustainable growth and provide a gateway for the Vietnamese economy, including small- and medium-sized enterprises, to access international capital and investment.

Therefore, one of the most critical lessons Vietnam can draw from the UK is the importance of a strong and predictable regulatory framework, underpinned by a common law framework. Almost every IFC around the world is built on English common law for a reason: it is trusted, widely understood and globally respected by investors.

Only through adopting a common law framework can Vietnam’s IFC become a destination of choice for international financial institutions. And of course, the UK stands ready to support Vietnam in understanding and implementing common law.

I also recommend that Vietnam continue to develop the business environment to be more competitive and attractive. Focusing on meeting international standards, such as International Financial Reporting Standards, as well as accelerating professional training in financial sectors and using English as the official language, is also important.

Strategic planning for digitalisation and sustainability growth is a crucial factor to enable the success of IFCs. The initial focus areas for the IFC could be green finance, fintech and capital and commodities markets development. Other areas can be included during later stages or introduced on a tempered basis.

Another area where the UK’s experience can be relevant is fintech. The country’s thriving fintech ecosystem shows how technology can accelerate financial inclusion, efficiency, and innovation. By encouraging partnerships between UK and Vietnamese fintech firms, we can help promote technology transfer, expand digital financial services, and attract venture capital and global investors to Vietnam.

Initiatives like the IFC in Ho Chi Minh City and Danang are ambitious and exciting. The UK is committed to supporting Vietnam on this journey through knowledge-sharing, regulatory cooperation, and business matchmaking. Events like the UK’s Southeast Asia Tech Week in Ho Chi Minh City and London Tech Week also offer opportunities to deepen bilateral engagement in financial services and emerging technologies.

To accelerate initiatives such as the IFCs and Danang Free Trade Zone (FTZ), I would recommend three priority actions.

The first is to establish a world-class regulatory environment, underpinned by common law. Vietnam should continue its reforms by developing a transparent, stable, and investor-friendly financial regulatory framework.

Drawing from the UK’s experience, this includes strong legal protections, a common law foundation, efficient licensing, and robust oversight mechanisms for both traditional finance and fintech.

The second action is to create innovation-driven financial ecosystems. International investors are drawn to dynamic, tech-enabled ecosystems. Vietnam could encourage sandbox environments and digital finance innovation zones, supported by partnerships with leading UK AI and fintech firms. This helps demonstrate Vietnam’s readiness for the next generation of financial services.

The final aspect is to signal strong commitment to environmental, social, and governance and sustainability. Sustainability is now a critical investment lens. By embedding such principles into the IFC and FTZ models, Vietnam can position itself as a forward-looking and financial hub. This will be a key differentiator in a competitive global market.

Game-changers for foreign investors will include not only smart regulation and digital readiness, but also Vietnam’s ability to facilitate meaningful international engagement.

The UK is a committed partner, through business missions, tech partnerships, and policy dialogue. We are pleased to see Vietnam’s progress and remain ready to provide continued support.