Vietnam to initiate construction of a $7 billion international financial center in Ho Chi Minh City
Vietnam is set to establish two international financial centers (IFC) in HCM City and Da Nang, as part of its ambition to become a regional financial hub alongside Singapore and Hong Kong.
The HCM City IFC will focus on banking, asset management, capital markets, fintech, and derivatives trading. It will be located in HCM City and will cover a vast area of 783 hectares, encompassing downtown Bến Thành Ward and the Thủ Thiêm New Urban Area. The IFC is expected to start operations in 2025 and be completed within five years.
The HCM City centre will be a "cornerstone of Vietnam's economic modernisation strategy". Key institutions in the first phase of the planned IFC include the Saigon Marina International Financial Centre (Saigon Marina IFC) Tower, which will serve as a hub for multinationals, global financial institutions, consulates, and local enterprises. The tower is expected to be a convergence point for capital, technology, and talent, supporting startups and innovation.
The municipal People's Committee, led by Vice Chairman Nguyễn Văn Dũng, oversees the development of the HCM City centre. The aim is to create a modern "live-work-play" ecosystem and position the city as a global financial hub. HCM City will begin construction of the IFC in September, with VNĐ2 trillion from the State budget earmarked for building offices for government agencies.
In contrast, Da Nang will specialise in green finance, digital financial services, and controlled pilot projects in crypto-assets. The total investment for Da Nang's IFC is not specified, but it is expected that the remaining investment will come from domestic and foreign strategic investors.
The success of establishing these international financial hubs depends on Vietnam's ability to deliver regulatory reforms, deepen its capital markets, and build trust with international investors. Analysts note that Vietnam will face stiff competition from Singapore and Hong Kong in establishing an international financial hub.
HCM City already hosts the Hò̀ Chí Minh Stock Exchange, the country's largest equities market. However, foreign participation remains limited by ownership caps and underdeveloped capital markets. Officials aim to attract global banks, funds, and insurers by offering a dedicated financial centre with clearer rules, sandbox regimes for fintech, and incentives for foreign investors.
The HCM City centre will be built in phases, with a 9.2-hectare "core zone" in Thủ Thiêm being built first. This zone will house financial regulators, supervisory bodies, and specialised courts. About VNĐ16 trillion will be spent in the first two to three years.
In conclusion, the establishment of the IFCs in HCM City and Da Nang marks a significant step in Vietnam's economic modernisation strategy. The success of these centres will depend on the country's ability to attract foreign investment, deepen its capital markets, and deliver regulatory reforms. The competition from established financial hubs like Singapore and Hong Kong will be fierce, but with the right policies and investments, Vietnam has the potential to become a major player in the regional and global financial landscape.
Read also:
- Upcoming iPhone Model: What We Understand Thus Far
- Struggling with water expenses poses challenges for socio-economically disadvantaged households
- Advantages of Using the Amex Delta Platinum Card: 26 Key Perks
- Supermarket Chain Lidl Collaborates with WWF to Encourage Eco-Friendly Food Consumption, Minimize Food Waste, and Guide People Towards Sustainable Decisions
