On June 10, the Government submitted to the National Assembly a proposal to establish an International Financial Center (IFC) in Ho Chi Minh City and Da Nang, with the goal of making Vietnam a financial gateway for the Asian region. Deputy Prime Minister Nguyen Hoa Binh affirmed that developing these financial centers is a strategic move to attract global capital, drive economic growth to double digits, and simultaneously develop advanced solutions in digital asset management.
In Ho Chi Minh City, the international financial center will focus on developing key areas such as capital markets, banking, insurance, financial technology (Fintech), along with derivative financial products. The city will also heavily invest in financial trading platforms, commodity trading platforms, logistics, and modern free trade models, aiming to form a comprehensive, internationally-scaled financial ecosystem.
Meanwhile, Da Nang is oriented to become a green financial and commercial financial center, serving small and medium-sized enterprises, innovative businesses, and non-resident organizations and individuals (offshore financial services). Additionally, Da Nang will be a testing ground for digital asset models, digital payment systems, and an ideal destination to attract Fintech startups and Venture Capital funds in the region.
The proposal is accompanied by 12 specific policies to create development leverage and strengthen connections with major global financial centers like Singapore and Hong Kong. These policies include tax incentives, administrative procedure reforms, Fintech sandbox mechanisms, and flexible legal frameworks supporting new financial models.
The National Assembly's Economic Committee and Finance and Budget Committee believe establishing international financial centers in these two major cities is necessary and aligned with the country's long-term development strategy. However, the committees also requested the Government to further clarify the feasibility and competitiveness of the proposed incentive policies. Simultaneously, Vietnam needs to clearly identify its distinctive and outstanding features compared to existing financial centers in the region to create genuine attractiveness for international investors and financial institutions.
Source: Vietnam Law Newspaper
