Vietnam Advances Plans for International Financial Centre to Boost Global Integration

Vietnam is advancing plans to establish an international financial centre (IFC) aimed at integrating more deeply into the global financial market and attracting international capital. On June 11, 2025, Finance Minister Nguyen Van Thang presented the project to Parliament, highlighting its potential to enhance Vietnam’s economic status in the region.

The comprehensive draft plan, now in its 30th iteration, proposes policies for foreign exchange liberalization, banking reforms, capital market development, tax incentives, and labor policies targeting skilled professionals and investors. The financial centre will be based in Ho Chi Minh City and Da Nang, with streamlined administrative procedures to facilitate participation. The National Assembly is expected to vote on the initiative on June 27, with operations tentatively scheduled to begin this year.

This initiative comes amid external risks, notably potential U.S. tariffs that could affect Vietnam's export-driven economy. Despite these challenges, foreign direct investment inflows into Vietnam rose 7.9% to $8.9 billion in January-May, while foreign investment pledges increased by 51.1% to $18.4 billion.

The proposed IFC aims to allow international financial transactions in foreign currencies, the creation of trading platforms for various sectors, and the application of international financial standards to both local and foreign-owned banks. The financial centre will be based in Ho Chi Minh City and Da Nang, with streamlined administrative procedures to facilitate participation.

The National Assembly is expected to vote on the initiative on June 27, with operations tentatively scheduled to begin this year.

This development is part of Vietnam's broader strategy to position itself as a key player in the global financial arena, leveraging its advantageous geopolitical location, stable economic conditions, and an increasingly welcoming climate for investment.

The establishment of an IFC is expected to have several social and economic implications:

• Economic Diversification: By developing a robust financial sector, Vietnam aims to diversify its economy beyond manufacturing and agriculture, reducing vulnerability to external shocks.

• Job Creation: The IFC is anticipated to create numerous high-skilled jobs, attracting talent and reducing brain drain.

• Urban Development: The development of financial hubs in Ho Chi Minh City and Da Nang is likely to spur infrastructure development, enhancing urbanization and improving living standards.

• Global Integration: An IFC will integrate Vietnam more deeply into the global financial system, enhancing its economic influence and fostering international partnerships.

By establishing an international financial centre, Vietnam aims to bolster its economic resilience, attract foreign investment, and enhance its position in the global financial market. This initiative reflects the country's strategic vision to navigate external challenges and foster sustainable economic growth.