Will Viet Nam’s IFC become the region’s “capital distribution hub”?

As global capital flows are being significantly reallocated toward Asia, Viet Nam stands before a rare opportunity to leap forward and redefine its position on the regional financial map. The strategy to establish an International Financial Centre (IFC) — with two poles in Ho Chi Minh City and Da Nang—is viewed as an institutional breakthrough aimed at mobilizing global resources, spurring innovation in growth models, and integrating Viet Nam’s economy more deeply into international financial networks.

Superior Institutions – The Pillar of Global Competitiveness

On November 4, Prime Minister Pham Minh Chinh chaired a special Government meeting on eight draft decrees guiding the implementation of National Assembly Resolution 222/2025/QH15 concerning Viet Nam’s International Financial Centre. Concluding the session, the Prime Minister emphasized that all policies must be “breakthrough, superior, open, transparent, and provide the greatest possible convenience for participating entities.”

Under the plan, Viet Nam will establish a single International Financial Centre with two destinations: Ho Chi Minh City will focus on banking, fund management, fintech, and derivatives trading, while Da Nang will position itself as a hub for green finance and digital assets.

In August 2025, the Saigon Marina IFC project — a landmark tower symbolizing Ho Chi Minh City’s ambition to become a financial hub — was inaugurated, marking the beginning of the IFC’s tangible infrastructure development. The city also signed a cooperation agreement with Nasdaq to advance IFC implementation. Meanwhile, Da Nang’s IFC began operating under a special regulatory mechanism in September 2025, attracting around USD 2 billion in investment for digital and fintech infrastructure.

According to Jochen Biedermann, Managing Director of the World Alliance of International Financial Centers (WAIFC), this “dual-pole” model resembles the synergy between Shanghai and Shenzhen — allowing China to balance commercial finance with technological innovation.

Following the Prime Minister’s latest directives, ministries and agencies have been tasked with finalizing the decrees by November 15. Local governments are required to promptly issue specific policies within their jurisdiction, prepare designated sites and organizational structures, and ensure readiness for implementation. After promulgation, each agency must act within its mandate and immediately report any matters beyond its authority.

As a National Assembly member who voted to approve the IFC resolution, Dr. Phan Duc Hieu, Standing Member of the National Assembly’s Economic and Financial Committee, noted:

“It is encouraging that the Prime Minister is personally eager to see the IFC realized. The policy has been approved, and both domestic and international investors are awaiting its official establishment. This is an institutional mechanism designed to create a competitive investment and business environment — not only to attract FDI but also to engage domestic investors.”

A “New Rulebook” and the Breakthrough Potential of Digital Assets

Speaking at a recent forum in Ho Chi Minh City, Mr. Quan Trong Thanh, Head of Research at Maybank Securities, emphasized that Viet Nam’s competitiveness will not come from replicating existing models, but from designing an attractive “rulebook” that ensures freedom for financial actors and captures the emerging momentum of digital assets.

He highlighted a critical inconsistency: while the Digital Industry Law allows the issuance of stablecoins — intermediary currencies for digital asset transactions — Resolution 05/NQ-CP has yet to provide a regulatory basis for digital assets backed by legal tender. He stressed that such provisions are essential for Viet Nam to align with global digital asset trends. He added that the foundation of a modern financial hub lies in its “software infrastructure” — a clear, feasible, and internationally compatible legal framework.

Dr. Nguyen Tu Anh, Director of Policy Research at VinUni University, argued that Viet Nam must answer a key question: “What advantages do international investors gain by coming to Viet Nam — and why choose Viet Nam over Singapore?”

According to him, Viet Nam can only become a true financial hub if it becomes the capital distribution center of the region — achievable under one of two conditions.

First, Viet Nam would need to become a capital-surplus country capable of exporting capital, similar to China, which accumulated vast reserves and established financial hubs such as Shanghai and Hong Kong. However, Viet Nam has yet to reach that stage. 

Second, the country could benefit from shifts in the global order. As the world transitions toward a possible multipolar structure, Viet Nam’s IFC could leverage its geographic and geopolitical position to serve as a connecting hub between emerging poles of power.

Dr. Nguyen Minh Cuong, senior economist, underscored that the IFCs in Ho Chi Minh City and Da Nang can only develop sustainably if anchored in the real economy: “A financial centre cannot be an isolated island. It must be rooted in the unique competitive advantages of each locality.”

Meanwhile, Mr. Huynh Minh Tuan, Founder of FIDT, told Business Forum that an international financial centre is not defined merely by skyscrapers, but by both hard and soft infrastructure.

“In the immediate term, physical infrastructure readiness is key. In Ho Chi Minh City, both domestic and foreign investors are already preparing to build facilities for IFC operations — which will, in turn, inject capital directly into the local and national economy.”

He also cautioned that without comprehensive legal reforms to create a level playing field for both domestic and foreign investors, the IFC’s ability to mobilize capital for the broader economy will remain limited.

Experts further noted that institutional reform — building ‘soft infrastructure’ in areas such as financial arbitration, residency mechanisms, tax incentives, and digital asset policy — along with transparent governance, independent arbitration systems, and specialized financial adjudication, will form the structural backbone of the IFC and bolster investor confidence.

“Physical infrastructure can be financed with money,” Mr. Thanh concluded, “but institutional infrastructure — the ‘rules of the game’ — ultimately determines long-term competitiveness.”