VIFC in Ho Chi Minh City attracts $19 billion in commitments

The figure was cited by Assoc. Prof. Dr. Nguyen Huu Huan, vice chairman of the Executive Board of Vietnam's International Financial Centre (VIFC) in Ho Chi Minh City, at the launch of the Fintech Hub – a core component of the financial centre – on April 14.

"The international investment community is showing strong interest in this project," Huan said. "Once the legal framework is finalised, committed capital will quickly be converted into actual investment, giving a significant boost to the VIFC. The key is to establish a mechanism for Ho Chi Minh City," he added. "A Special Urban Law would represent a breakthrough in institutional reform, granting the city greater authority to formulate policies and make economic development decisions."

Among these, the most critical element is the regulatory sandbox mechanism. This would enable the city to position itself as a hub for innovation, where new policies can be tested in a controlled environment before being scaled up nationwide and eventually codified into law.

According to Huan, compared to previous resolutions, the Special Urban Law would offer more advanced provisions, such as expanding the scope of the sandbox mechanism for the VIFC beyond the current 898-hectare geographical boundary, thereby creating a larger market for financial institutions.

“It is still too early to make a comprehensive assessment, as the VIFC has only been in operation for about three months. This is a phase where we are focused on building the legal infrastructure and sandbox mechanisms. At the same time, we have been promoting investment and international cooperation, including partnerships with major financial and technology institutions such as Nasdaq, the London Stock Exchange, Binance, and TikTok,” he said.

In terms of investment promotion, the city has organised roadshows in the United States, attracting strong interest from major corporations and investment funds such as BlackRock and Warburg Pincus.

With Ho Chi Minh City contributing around 25 per cent of the country’s GDP and facing enormous capital demand to sustain one of the world’s fastest growth rates, the role of VIFC in the coming period will be critically important.

“Committed capital is currently at around $19 billion. However, greater attention should be paid to actual disbursement rather than what has already been pledged. To convert commitments into disbursed investment, we need to wait for the official establishment framework, which will allow entities to set up subsidiaries and banks within VIFC,” Huan noted.

Huan explained that setting up a standard company typically takes about five days. However, for banks, the current regulatory timeline is 120 days. VIFC aims to shorten this process to around 30 days.

Digital assets are currently a key area of interest for investors. On April 2, VIFC held a workshop on sandbox mechanisms in the blockchain sector.

Meanwhile, several topics are being discussed and consultation with experts, including tokenisation, the trend of converting real-world assets into digital tokens, which represents a global movement and a significant opportunity that the centre is studying to introduce a pilot framework in the near future.

“These pilot mechanisms are still undergoing consultation and evaluation. Asset tokenisation is undoubtedly a major global trend that cannot be overlooked. If deemed feasible, VIFC will make every effort to promptly introduce a pilot regulatory framework, enabling Ho Chi Minh City to firmly integrate into the global flow of fintech-driven finance,” Huan added.

Illustrative image of the VIFC in Ho Chi Minh City

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