Vietnam’s International Financial Centre (IFCs)

Vietnam's economic expansion over the past two decades has been driven by export-oriented manufacturing and sustained foreign direct investment inflows. These have supported firm-level consolidation, deeper integration into global supply chains, and growing capital flows tied to production and investment activity. As integration deepens, financing needs have become larger and more complex.

In contrast, the financial system has developed more gradually. While the banking sector remains central to capital allocation, domestic capital markets remain comparatively shallow in depth, liquidity, and product range. At the same time, demand for capital is expanding, particularly in infrastructure, energy transition, and digital development, alongside a growing need to diversify beyond traditional bank credit. To put this into context, Vietnam needs about USD 1.5 trillion to finance its infrastructure plans for 2030. Furthermore, a significant portion of FDI into Vietnam is currently structured and intermediated through offshore hubs rather than domestic channels. Against this backdrop, the traditional financing conducted through regional financial centres, particularly Singapore and Hong Kong, will not be sufficient to meet Vietnam's growing capital and infrastructure financing needs. Vietnam needs a more developed financial ecosystem for originating, structuring, and intermediating capital flows. As competition among financial centres intensifies, Vietnam faces both an opportunity and a clear need to build domestic capacity to retain a greater share of this activity and better serve the evolving financial requirements of international investors. 

In this context, the establishment of an International Financial Centre (IFC) in Vietnam represents a strategic effort to strengthen the country's capacity to mobilise and allocate capital, deepen financial integration, and position Vietnam more actively within regional and global financial systems.

Why Vietnam needs an IFC

Over the past two decades, Vietnam’s economic growth has been largely driven by export-oriented manufacturing and foreign direct investment (FDI). However, the development of the domestic financial system has not kept pace with the increasingly sophisticated capital needs of the economy.

The establishment of the IFC is intended to:

• Enhance Vietnam’s ability to mobilise and allocate capital;
• Attract and retain international investment flows;
• Support the development of domestic capital markets;
• Facilitate cross-border financial activities;
• Strengthen Vietnam’s competitiveness as a regional investment destination.

A dual-centre model with complementary roles

Vietnam’s IFC is designed around two specialised locations, each serving a distinct strategic purpose.

Ho Chi Minh City is positioned as the country’s primary financial gateway, leveraging its concentration of financial institutions, capital market infrastructure, and international business activities. Its focus is on liquidity, scale, and execution capabilities, particularly for large and cross-border transactions.

Da Nang is envisioned as an innovation-driven financial hub focused on fintech, digital finance, green finance, and sustainable finance. It is also expected to serve as a testing ground for new financial models through a regulatory sandbox framework.

Together, the two centres aim to balance immediate market needs with long-term financial innovation and ecosystem development.

Attractive incentives and special regulatory mechanisms

One of the most notable features of the IFC is its combination of tax incentives and tailored regulatory policies designed to attract capital, financial institutions, and highly skilled professionals.

Key measures include:

• Preferential corporate income tax incentives for qualifying sectors;
• Personal income tax exemptions or reductions for eligible experts and professionals;
• Greater flexibility in foreign exchange transactions and cross-border financing;
• Adoption of International Financial Reporting Standards (IFRS);
• Regulatory sandbox mechanisms to encourage financial innovation;
• Streamlined licensing and administrative procedures.
• These measures are intended to enhance Vietnam’s attractiveness compared to competing financial centres in the region.

Implications for Businesses and Investors

For international investors and financial institutions, the IFC provides a more structured and transparent platform for accessing the Vietnamese market while facilitating capital raising and cross-border transactions.

For Vietnamese businesses, potential benefits include:

• Improved access to international capital sources;
• Stronger connections with global investors and financial institutions;
• Enhanced corporate governance and financial transparency;
• Access to tax and foreign exchange incentives;
• More efficient dispute resolution mechanisms and international transaction structures.

At the same time, businesses will need to prepare for higher standards of governance, compliance, internal controls, and financial reporting.

Preparing for the opportunities ahead

Participation in the IFC is not solely about accessing incentives—it also requires organisations to strengthen their operational and governance capabilities to meet international expectations.

Businesses should proactively assess:

• IFRS readiness and financial reporting capabilities;
• Cross-border operating and investment structures;
• Internal control and risk management frameworks;
• Tax compliance and regulatory obligations;
• Capital raising and expansion strategies.

Early preparation will enable organisations to maximise the opportunities presented by Vietnam’s evolving financial landscape.

How Grant Thornton Vietnam can support your business

Operating within the IFC ecosystem requires businesses to balance growth ambitions with increasingly sophisticated compliance and governance requirements. Drawing on extensive experience supporting both domestic and international organisations, Grant Thornton Vietnam provides integrated solutions across Assurance, Tax, Advisory, and Business Process Solutions to help businesses navigate regulatory changes, optimise structures, strengthen governance, and unlock opportunities arising from the IFC.

Whether you are evaluating market entry, restructuring cross-border operations, enhancing reporting capabilities, or exploring capital-raising opportunities, our specialists can help you develop a practical and effective roadmap aligned with your business objectives.

Contact Grant Thornton Vietnam today to discuss how the International Financial Centre may impact your organisation and how you can position your business for success in this evolving financial environment.