Vietnam seeks UK expertise to advance IFC vision

Photo: Duc Minh.

On March 24, at the Ministry of Finance (MoF) headquarters, Deputy Minister Tran Quoc Phuong received UK Ambassador Iain Frew and Angela Knight CBE, chair of the Astana Financial Services Authority, to exchange experience on the development of the Astana International Financial Centre (AIFC) in Kazakhstan.

The AIFC incorporates an English common law-based framework and has drawn on UK legal and regulatory expertise to support its development.

Deputy Minister Phuong welcomed the delegation and expressed appreciation for support from the UK government, the British Embassy, organisations such as TheCityUK, and the UK business community in helping Vietnam improve its financial sector legal framework.

He noted that lessons from the AIFC serve as a valuable reference for Vietnam as it moves forward with its own international financial centre model. Vietnam is pursuing a dual-location model, with financial centres to be established in Ho Chi Minh City and Danang.

"This approach presents both opportunities and challenges in institutional design, operations, and resource mobilisation. As such, learning from international experience, particularly from the UK, with its long-established financial system and widely adopted legal frameworks, is essential," the deputy minister said.

"Attracting international investors has been identified as a top priority," he added. "Vietnam will engage with and invite foreign enterprises to participate, while seeking continued support from international partners in connectivity and global outreach. The long-term goal is to position Vietnam's IFC among reputable global hubs by 2035."

To deepen cooperation, the deputy minister called on UK partners to continue sharing expertise in governance and supervision, including financial safety oversight, systemic risk management, anti-money laundering, cross-border financial risks, and technology-related risks such as cybersecurity and system resilience in an increasingly digitalised environment.

He also expressed interest in UK experience across emerging financial sectors tied to financial centres, including green and sustainable finance, fintech, regulatory technology, sandboxes, and digital assets.

Vietnam aims to strengthen connectivity between its future financial centres and major hubs such as London and Astana, enhancing links across capital markets, banking, asset management, and cross-border financial services.

"This would contribute to the broader development of regional financial networks in ASEAN and Asia," the deputy minister stated.

Ambassador Frew commended the progress in Vietnam-UK cooperation on IFCs, describing it as a key pillar of the bilateral strategic partnership. "Incorporating this agenda into bilateral discussions reflects long-term vision and shared ambition," he said.

While acknowledging Vietnam’s positive progress, particularly its shift from conceptual planning to implementation, the ambassador explained the need to further clarify the operational model, governance mechanisms, and strategic direction to pull in international investors.

"Limited initial participation by foreign firms reflects the need for more information and evaluation time, rather than a lack of interest, underscoring the importance of enhanced communication, roadshows, and direct investor engagement," he said.

Frew also highlighted the importance of identifying Vietnam’s competitive advantages, particularly in areas such as green finance, where the UK has strong expertise and stands ready to support.

Sharing practical insights, Knight said, "Building an international financial centre is a major undertaking requiring a focused approach. Clear priorities should be defined from the outset, rather than pursuing an overly broad agenda."

"Transparency is critical to building investor trust. Policies and regulations must be publicly accessible, consistent with international standards, while regulatory bodies should maintain independence and involve international expertise to ensure credibility," Knight said.

Knight also underscored the importance of an effective dispute resolution mechanism – such as specialised courts – to strengthen confidence in the legal system. Drawing from AIFC's experience, she advised Vietnam to set realistic goals in the early stages, avoid aiming too high, and establish strong inter-agency coordination mechanisms to ensure smooth implementation.

On attracting international investors, she concluded that a clear legal framework, transparent governance, and strong investor protection are fundamental prerequisites. Once these conditions are in place, capital inflows will follow more naturally.

Private capital funds as cornerstone of IFC plans As Vietnam accelerates its ambition to establish an international financial centre (IFC) in Ho Chi Minh City and Danang, the national discourse has understandably focused on the “hardware” of development: regulatory sandboxes, infrastructure connectivity, and tax incentives. These are the necessary foundations of any financial hub.

Academic-policy network planned to support VIFC development Vietnam is working to establish a nationally recognised academic-policy forum in finance, aimed at strengthening policy advisory capacity and supporting the development of its International Financial Centre.

Green finance talent a must for new IFCs The development of international financial centres in Vietnam has been designed by the government around several core pillars, among which the international factor plays a decisive role in ensuring the safe operation of the entire financial system.