Ho Chi Minh City (HCMC) is preparing to put its international financial center (IFC) into operation, with organizational and staffing arrangements largely finalized, Saigon Giai Phong, a Vietnamese Communist Party newspaper, reported on November 22, 2025, citing HCMC People’s Committee Chairman Nguyen Van Duoc.

The IFC will be located in Saigon Ward, Ben Thanh Ward, and the Thu Thiem Urban Area in An Khanh Ward, covering a total area of nearly 900 hectares. It will be equipped with high-speed Internet network covering the entire IFC venue, while the municipal Department of Science and Technology currently building an online information portal for the hub.

Associate Professor Dr. Nguyen Huu Huan, a member of the IFC consulting team, said that the city is working with leading global and Vietnamese technology corporations to prepare infrastructure for the IFC. It’s partnered with the US Nasdaq Stock Exchange on governance, capacity building, cross-listing, and product development.

Nasdaq is providing technology and technical services for the development and operation of the IFC, in addition to training Vietnamese professionals in securities, bonds, derivatives, digital assets, and carbon credit markets.

The two sides have also committed to exchange best practices and experiences in the development of legal frameworks, operating mechanisms, risk management, product development, and international investment attraction, and will focus on strengthening businesses connections between Vietnamese, US, and global financial communities.

HCMC is also working with the New York Institute of Finance to implement practical financial and investment training programs following international standards.

HCMC’s IFC is expected to completed within five years, with preliminary total investment for the project estimated at around VND 172,000 billion (US$7 billion).

Speeding up IFC initiatives

News of HCMC’s progress follows an official telegram issued earlier in November by Vietnam’s Prime Minister Pham Minh Chinh, which urged relevant authorities to accelerate efforts to launch IFCs. These authorities include the Ministers of Finance, Public Security, Industry and Trade, Agriculture and Environment, Home Affairs, Justice, the Governor of the State Bank of Vietnam, and the Chairmen of the People’s Committees of HCMC and Da Nang.

The Prime Minister called for establishing a Government Steering Committee to oversee the development of these IFCs, and instructed HCMC and Da Nang to cooperate with relevant agencies to promptly issue preferential policies and create favorable working and living conditions for international investors, covering healthcare, insurance, education, culture, and sports. They were also urged to nominate personnel for review by the Ministry of Finance.

The government wants to launch its two IFCs in HCMC and Da Nang, a coastal city in central Vietnam, by the end of the year.

Da Nang IFC to focus on fintech, green finance

In Da Nang, Chairman of the city People’s Committee Pham Duc An said in October that the city was still working on establishing its IFC, focusing especially on formulating policies, upgrading infrastructure, building data centers, improving airport and seaport facilities, establishing free trade zones, training human resources in international finance, and piloting different management models.

Da Nang’s IFC is intended to serve as a “laboratory” for new financial models, particularly in green finance, trade finance, and fintech. It strives to boost fund management activities to support fintech startups, and will promote green finance products and initiatives to support Vietnam’s net-zero goals and global sustainability vision.

The center also seeks to develop cross-border trade finance linked to its seaports, logistics, and international tourism, along with offshore financial services for organizations, foreign-invested enterprises, and global investors.

Finally, it will focus on fostering a favorable financial environment for small and medium-sized enterprises (SMEs) and innovative startups, working with ministries and agencies to develop a conducive regulatory landscape.

Da Nang established the Advisory Council for the Development of Vietnam’s IFC in August 2025, consisting of 17 stakeholders, Theinvestor.vn reported.

The council is responsible for research and policy advice on development strategy, governance model, incentives for the center, training programs, and policies to attract global experts and overseas Vietnamese professionals.

Da Nang has partnered with a number of stakeholders to reach its objectives, including Vietcombank, Saigon Securities (SSI), VNPay, Frankfurt Main Finance, Tether, Apex Group, ARK Global, the Global Green Growth Institute, the Swiss Fintech Association, and the Vietnam Young Entrepreneurs Association in Europe.

These partnerships aims to help attract investors to the Da Nang IFC, promote joint outreach in international markets, connect the center with global capital markets, produce guidance materials, and develop regulatory frameworks for emerging technologies.

Da Nang is targeting double-digit economic expansion for the year. To date, the city has attracted 1,282 foreign direct investment (FDI) projects with total registered capital of over US$10.96 billion.

Vietnam’s IFC ambitions

Vietnam’s National Assembly passed on June 27, 2025, a resolution on the development of IFCs in Vietnam. Effective from September 01, the resolution draws heavily on global models and outlines the development of IFCs located both in HCMC and Da Nang, with a unified regulatory framework but tailored products based on each city’s strengths.

These IFCs aim to serve as hubs that connect markets, foster innovation, and improve governance and transparency while attracting investment and deepening global integration. They strive to create new momentum for socio-economic development, enable economic growth of at least 8% in 2025 and a double-digit expansion from 2026 onward, and help Vietnam achieve its long-term goal of becoming a modern, high-income nation.

HCMC will focus on capital markets, banking, currencies, financial innovation sandboxes, and advanced trading platforms, serving as the nation’s main liquidity center. Meanwhile, Da Nang will focus on green finance, fintech, digital services, controlled testing of digital assets and currencies, and attracting investment and remittance funds, leveraging its strengths in logistics, tourism, coastal industries, and the East-West Economic Corridor.

Within these IFCs, priority sectors will enjoy a preferential corporate income tax rate of 10% for 30 years, with a maximum corporate tax exemption of four years, as well as a 50% reduction on payable tax in the following nine years. Other projects will benefit from a 15% rate for 15 years, two years of tax exemption, and a 50% reduction for the next four years. Foreigners working in the center will be exempt from personal income tax until the end of 2030.

By 2035, Vietnam aims of its IFCs to rank among the top 75 financial centers in the world and among the top 20 by 2045.

Featured image: Edited by Fintech News Singapore, based on images by Peter Nguyen and Anh Nguyen via Unsplash, and rachenzero via Freepik