Vietnam’s Dream of Becoming a Global Financial Center

On the white sand beaches of Da Nang—a top tourist destination in Vietnam—a seemingly unremarkable plot of land is poised to become part of Vietnam’s ambitious vision: establishing two International Financial Centers (IFCs) in Da Nang and Ho Chi Minh City. Just 7 km to the northeast lies a site overlooking Da Nang Bay, inspired by Dubai’s Palm Islands. If plans proceed accordingly, these locations will anchor Vietnam’s future IFCs, aiming to attract large-scale foreign capital to fund the country’s double-digit growth ambitions and achieve developed-nation status by 2045.

A New Chapter in Vietnam’s Financial Evolution

While the concept of IFCs has been discussed for years, real progress has only emerged in the past 12–18 months, according to Richard McClellan, Vice Chairman of the Da Nang IFC Advisory Council. This progress reflects not just political will but also clearer legal and institutional frameworks.

Unlike global financial hubs such as London or Singapore, which evolved from trade routes, Vietnam’s model follows Dubai’s incentive-based approach — offering a range of benefits to attract major investors and financial institutions.

Twin IFC Projects in Ho Chi Minh City and Da Nang

Ho Chi Minh City IFC

Ho Chi Minh City plans to attract USD 7 billion in infrastructure investment focused on banking, asset and fund management, fintech, and commodity derivatives. The newly completed 55-story Saigon Marina Tower has been selected as the headquarters. The city aims to launch initial IFC operations by late 2025, with full implementation targeted for 2030.

Da Nang IFC

Da Nang’s financial center will emphasize green finance, digital services, fintech innovation, and a regulatory sandbox for digital assets. The government expects USD 2 billion in IT and connectivity infrastructure investment, with pilot administrative functions already underway.

According to Resolution 222/2025, effective September 2025, Vietnam now has a comprehensive legal foundation to manage and regulate both IFCs.

Building Global Partnerships and Attracting Investors

The Vietnamese government is actively engaging with major international partners including HSBC, Standard Chartered, Citi, Deloitte, and KPMG, as well as strategic advisors such as TheCityUK and the Tony Blair Institute.

Additionally, Binance CEO Richard Teng has been appointed a senior advisor to the Da Nang IFC, and Emaar Properties—the developer of the Burj Khalifa—has expressed interest in Vietnam’s IFC and real estate projects. These collaborations highlight Vietnam’s intent to align its IFCs with global best practices.

Vietnam’s long-term vision is to rank among the top 75 financial centers by 2035 and the top 20 by 2045 on the Global Financial Centres Index (GFCI).

Policy Incentives to Compete Globally

To attract major investors and Fortune 500 companies, Vietnam plans to introduce an extensive range of incentives, including:

• 30-year corporate tax breaks

• Personal income tax exemptions

• Long-term visas and fast-track business registration

• Regulatory sandboxes for innovation

• Integration of AI and blockchain technologies

Companies listed in the Fortune 500 will automatically qualify for IFC membership, a move designed to enhance credibility and attract blue-chip tenants.

Challenges: Capital Controls and Legal Framework

Managing Capital Flows

A major challenge lies in determining how open Vietnam’s capital markets should become. The State Bank of Vietnam currently maintains controls on foreign exchange to protect the VND and stabilize exports—a vital driver of Vietnam’s 8.23% GDP growth in Q3/2025.

Under the current IFC proposal, only one-way capital flows from IFCs into the domestic market will be allowed, while two-way flows between IFCs and global markets will remain unrestricted.

Experts like Fitch Ratings’ Willie Tanoto suggest that separating offshore and onshore operations could help Vietnam balance stability and openness. However, there are concerns about potential regulatory loopholes, tax evasion, and money laundering risks if IFCs expand too quickly.

Legal System and Common Law Integration

Vietnam operates under a Civil Law system, while most international financial hubs rely on English Common Law. The UK Consul General, Alexandra Smith, has proposed incorporating Common Law within IFC frameworks to attract international investors.

Although the Chief Justice of Vietnam has expressed concerns about legal consistency, authorities are exploring ways to use foreign judges within the IFC’s dispute resolution system—mirroring models in Dubai and Astana.

Massive Infrastructure Push to Support IFC Development

Vietnam’s financial ambitions align with an unprecedented wave of national infrastructure projects. In August 2025, the government launched USD 49 billion in transport and housing projects and plans a USD 67 billion cross-country high-speed railway in the coming years.

Both Ho Chi Minh City and Da Nang are expanding metro networks, airports, seaports, highways, and renewable energy projects, establishing a strong foundation for Vietnam’s global financial integration.

Vietnam’s Road to Global Financial Prominence

Experts believe that Vietnam is on the right path, but the journey will require sustained reforms and commitment. Minh Ngo, Country Head at Citi Vietnam, said that while Vietnam’s growth potential and geographic position are clear strengths, its rise to global financial prominence will depend on capital market liberalization, legal modernization, and institutional transparency.

Tyler McElhaney, Head of Vietnam at Apex Group, added that early movers—such as private equity funds, fintech firms, and ESG-linked investors—stand to gain the most from Vietnam’s rapid financial transformation.

Dominic Scriven, Founder and Chairman of Dragon Capital, concluded that Vietnam’s IFCs will be an ongoing experiment but one that is both necessary and transformative: “These centers could catalyze the next evolution of Vietnam’s financial ecosystem.”

Original post from Vietstock