Taking inspiration for global financial centre undertaking

But now, the focus is shifting towards higher-value industries, and nowhere is this more evident than in the bold plans for a financial hub in Ho Chi Minh City, either in the coastal district of Can Gio or the emerging urban area of Thu Duc city. These projects could redefine Vietnam’s role in the global economy moving forward.

Le Net (left) and Vu Thanh Minh

The proposed international financial centre (IFC) is inspired by global models such as Singapore’s Marina Bay and Dubai’s international centre.

Prime Minister Pham Minh Chinh has emphasised that Vietnam has the key conditions needed to develop an international financial centre: strong economic growth, a young and skilled workforce, improving infrastructure, a favourable geographic position, and a commitment to regulatory reform.

Regarding the IFC, he remarked that Vietnam must seize this opportunity to integrate deeper into the global financial system. The Prime Minister also cited Dubai as a benchmark, highlighting its success in creating an independent legal framework and fostering innovation. He has called for strategic collaborations with international partners, particularly the UAE, to support Vietnam’s efforts to develop similar financial hubs.

In Vietnam, Thu Duc city is already touted as a potential creative urban hub comparable to Pudong of Shanghai. Connected by the newly operational Metro Line 1, Thu Duc and particularly Thu Thiem offers proximity to high-tech zones and a burgeoning innovation ecosystem.

The size of Marina Bay is about 150 hectares, smaller than Thu Thiem, making Ho Chi Minh City ready to reserve land to develop an IFC.

Alternatively, in Can Gio, the vision extends to a sprawling new city developed by Vingroup, with a metro link to Ho Chi Minh City centre, anchored by a state-of-the-art deepsea port. Can Gio Mega Port aims to rival the largest ports in Southeast Asia, positioning Vietnam as a central node in global trade and logistics.

These locations, with their distinct advantages, reflect Vietnam’s determination to chart its own course as a financial and trade hub.

For Ho Chi Minh City’s IFC to thrive, Vietnam will need to implement a series of groundbreaking reforms that echo the successes of hubs like the one in Dubai. Among the essential changes are regulatory innovations, new governance structures, and competitive incentives for both financial institutions and talents, such as world-class financial and legal advisors – all designed to position Vietnam as a competitive global player.

Regulatory framework: A crucial step is establishing a separate legal regime for the IFC, distinct from Vietnam’s existing regulatory system – similar to Dubai’s approach. This specialised framework would create a predictable legal environment for international investors, ensuring reliable contract enforcement and dispute resolution.

Tax policy: A competitive tax policy is essential to attract multinational corporations and top financial experts, Vietnam may consider a personal income tax rate and threshold comparable to Singapore or Hong Kong; a corporate income tax rate of 15 per cent, similar to Hong Kong; or exemptions from withholding taxes on dividends, royalties, and interest payments.

These measures, paired with a streamlined regulatory process, would offer a clear edge over regional competitors.

Capital flow: To establish the IFC as a regional financial hub, Vietnam must facilitate the free flow of capital to and from it, allowing for unrestricted currency movement and seamless repatriation of funds. This would simplify cross-border transactions and bolster the financial centre’s role as a regional nexus for trade and investment.

As an IFC is considered a separate economic zone, its interface with the rest of Vietnam would be important, but only limited to capital transactions, not current transactions.

Regulatory sandbox for fintech: Encouraging innovation is another pillar of success. While Vietnam’s Law on Credit Institutions includes a provision for a fintech regulatory sandbox, no specific decree has been issued thus far.

A dedicated fintech sandbox for the IFC would allow startups to test emerging technologies such as blockchain and AI, fostering a dynamic financial ecosystem.

Balancing innovation and stability: These reforms must integrate with Vietnam’s broader regulatory framework, addressing issues like transfer pricing and foreign exchange controls. Establishing a specialised governing body – similar to Dubai’s Financial Services Authority – would ensure effective oversight, stability, and investor confidence.

By granting the IFC regulatory autonomy while aligning it with national policies, Vietnam can create a globally competitive financial hub.

Vietnam offers strong investment opportunities. The planned IFC will attract global banks, fintech firms, and wealth management services, while Can Gio’s port development will boost logistics and finance.

Digital transformation is accelerating, with fintech, e-commerce, and digital payments set to thrive. Renewable energy is also a key focus, with growing investment in solar, wind, and green hydrogen to support Vietnam’s net-zero goal by 2050.

However, regulatory reforms, improved infrastructure, and legal transparency are crucial to attracting global investors. As competition from other emerging markets rises, Vietnam must adapt and innovate.

A financial centre in Ho Chi Minh City could drive economic growth and enhance Vietnam’s global position. With the right policies and collaboration, now is the time to invest.

Ho Chi Minh City and Danang ready to build financial centres Ho Chi Minh City City and Danang are ready for the construction of new regional and international financial centres in Vietnam, according to city leaders at the announcement ceremony of the government’s resolution on developing regional and international financial centres in Vietnam, held ịn Ho Chi Minh City on January 4.

Vietnam to develop first financial centres Vietnam has the necessary elements and conditions to develop an international and regional financial centre, Prime Minister Pham Minh Chinh said on January 4.

Assignments set for global financial centre aspirations By building an international financial centre, Vietnam could become the world’s capital mobilisation hub. However, there are still many issues regarding resources, infrastructure, and personnel that will need to be resolved.