Exploring the Vietnam International Financial Center: Part 1 – Scope, Governance, and Regulatory Framework

The Vietnam International Financial Center’s (IFC) implementation is governed by a comprehensive set of legal documents that require careful review by businesses and investors. In the first part of the “Exploring the Vietnam International Financial Center” series, Vietnam Briefing offers an overview of the core principles of this new initiative, helping businesses and investors better navigate and explore opportunities within the IFC.

Regulatory framework

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On June 27, 2025, the Vietnamese government issued Resolution No. 222/NQ-CP, officially creating the IFC in Vietnam. Following this historic announcement, businesses and investors have been seeking more detailed guidance on Vietnam’s plans to develop and manage the IFC, including the special mechanisms it will offer.

The wait is finally over with the official launch of the Vietnam IFC, led by Prime Minister Pham Minh Chinh, on December 21, 2025. At the event, the government introduced eight newly approved decrees that outline key aspects of Resolution 222. These decrees establish the complete legal and regulatory framework for the IFC, setting policies to ensure the center can begin operations by the end of 2025 with strong competitiveness and solid fundamentals.

Deputy Prime Minister Nguyen Hoa Binh – Chairman of the IFC’s Executive Council – noted that the government plans to start implementing the framework through decrees. These decrees will be periodically reviewed, amended, supplemented, or replaced based on practical experience to enhance the system. This set of decrees will be formalized into a dedicated law or legal code for the IFC, once it has proven its steady functions.

Furthermore, the new Law on Specialized Courts at the IFC, effective from January 1, 2026, will align the IFC’s legal framework with international standards by incorporating Common Law principles and enabling the appointment of foreign judges.

Scope of the new IFC

Under Resolution 222, detailed by Decree No. 323/2025/ND-CP (“Decree 323”), the Vietnam IFC will be located in two different hubs in Ho Chi Minh City and Da Nang City, with each hub serving separate functions.

The IFC consists of multiple operational sub-zones, including:

• Financial trading areas;
• Banking service zones;
• Securities and commodities exchange areas;
• Office districts;
• Arbitration centers;
• Courts; and
• Other functional zones designated by the IFC Management Authorities in Ho Chi Minh City and Da Nang.

Ho Chi Minh City IFC: A comprehensive capital and financial services hub

The IFC in Ho Chi Minh City serves as Vietnam’s main financial and capital center, supported by a comprehensive and diverse financial ecosystem. Its key goal is to focus on and expand both traditional and specialized financial services, fostering strong synergies across various financial products and services.

Da Nang IFC: An innovation-driven sandbox for new products

Unlike the hub in Ho Chi Minh City, the IFC in Da Nang is positioned as an innovation-oriented financial hub, closely integrated with digital technology, sustainable finance, and the broader innovation ecosystem. Its core mission is to serve as a controlled testing and deployment platform for new financial models, taking a pioneering role in digital assets, digital payments, specialized trading platforms, and exchanges.

Competent authorities

There are key authorities responsible for the strategic oversight, daily management, regulatory supervision, and dispute resolution of the Vietnam IFC.

IFC Executive Council

The Executive Council serves as the IFC’s highest coordinating and strategic body. Established by the Prime Minister, it is responsible for approving development strategies, roadmaps, and operational regulations, resolving inter-city coordination issues between Ho Chi Minh City and Da Nang, and providing overall policy direction.

The Council is supported by an advisory board comprising domestic and international financial and legal experts.

IFC Management Authorities

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The city-level IFC Management Authorities in Ho Chi Minh City and Da Nang act as the primary operational regulators and administrators.

Operating as specialized administrative bodies under the respective municipal People’s Committees, they oversee licensing, member registration, infrastructure development, one-stop administrative procedures, fintech and sandbox programs, and the day-to-day management of IFC activities within each location.

IFC Supervisory Authority

The Supervisory Authority functions as an independent oversight and enforcement body for the IFC. Based in  Ho Chi Minh City, with the option to establish a branch in Da Nang, it is responsible for inspection, supervision, compliance monitoring, risk management, and handling violations. The authority also oversees the implementation and evaluation of controlled pilot (sandbox) mechanisms.

IFC dispute resolution bodies

Disputes arising within the IFC are handled through a dual-track dispute-resolution framework comprising a specialized court and an international arbitration center.

This structure is intended to provide investors and market participants with efficient, credible, and internationally aligned mechanisms for resolving financial and commercial disputes.

Eligible members in the Vietnam IFC

Members of the Vietnam IFC are entities that are formally registered, recognized, or licensed to establish and operate within the IFC in accordance with Resolution 222 and its implementing regulations.

Under the framework, IFC members include the following categories:

• Commercial banks, foreign bank branches, securities companies, insurance enterprises, and reinsurance companies;
• Investment and asset management entities;
• Market infrastructure organizations;
• Fintech and digital asset organizations;
• Professional service providers;
• Non-financial entities; and
• Other entities as prescribed by the government.

Applicable language

To foster a friendly environment for international integration, the IFC will use both English and Vietnamese, with English serving as the official language for transactions and operations. Most procedures and documents conducted within the IFC will be required to be in English, with an optional Vietnamese translation, including:

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• Administrative procedures;
• Transactions between members;
• Transactions between members and foreign organizations or individuals;
• Dispute resolution; and
• All statistical, financial, technical documents, and other relevant materials.

Meanwhile, regulations and rules within the scope of the IFC hubs must be issued in both English and Vietnamese.

Foreign exchange management in the Vietnam IFC

With Decree No. 329/2025/ND-CP (“Decree 329”), Vietnam introduces a comprehensive framework for foreign exchange management, particularly regarding capital flows between the IFC, overseas markets, and the rest of Vietnam.

Use of foreign currency accounts by IFC members

Under Decree 329, IFC member enterprises are required to use foreign currency payment accounts opened at member banks (member capital accounts) for a defined set of cross-border and domestic investment activities. These include:

• Borrowing from foreign individuals and organizations;
• Lending to foreign entities and domestic borrowers;
• Making outbound investments from the IFC to overseas markets; and
• Investing from the IFC into the rest of Vietnam.

This account-based approach is intended to ensure transparency, traceability, and effective oversight of capital movements within and beyond the IFC.

Foreign investors’ capital contribution and profit repatriation

Foreign investors are required to conduct all inbound investment transactions into the IFC through foreign currency capital accounts opened with member banks. The same accounts must also be used when transferring investment capital, profits, and other lawful income from the IFC abroad.

For all transfers within the scope above, investors and IFC members must clearly specify the purpose of each remittance. This serves as the basis for member banks to verify, record, and process transactions in accordance with regulatory requirements.

Investment from the IFC into the rest of Vietnam

For transactions arising from IFC investments into the domestic market, members must transfer funds through their member capital accounts.

Where the IFC member is an enterprise, Decree 329 requires compliance with foreign exchange rules applicable to foreign direct and indirect investment into Vietnam, as guided by the State Bank of Vietnam.

Outbound investment from the IFC

Decree 329 distinguishes obligations regarding outbound investment based on the ownership structure of IFC members:

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• Wholly foreign-owned members: These members are not required to register or amend foreign exchange transactions related to outbound investment. However, all fund transfers must still be conducted through member capital accounts and remain subject to information disclosure and reporting obligations stipulated by Decree 329.
• Non-wholly foreign-owned members: These members must register foreign exchange transactions related to direct outbound investment with the IFC Management Authority prior to transferring funds. Any subsequent changes must also be registered. Investment capital, profits, lawful income, and indirect outbound investment must be transferred through member capital accounts.

Roadmap and development plan

Vietnam’s strategy for building the IFC follows a phased, institution-driven plan that balances immediate operations with future policy enhancements and infrastructure growth.

The initial focus is on establishing the centers quickly, developing a supporting ecosystem, and ensuring regulatory preparedness. Over time, the plan aims to introduce diverse, competitive features to attract capital, talent, and global financial institutions, while maintaining the stability of the national financial system.

Within five years of the Decree’s effective date, the IFC Executive Council will:  

• Conduct a preliminary review and evaluation of IFC operations and report to the Government; and

• Where necessary, propose restructuring options toward a more streamlined and unified model, subject to safety and efficiency conditions, while ensuring uninterrupted operations at both locations.

Considerations for businesses

The Vietnam IFC’s framework signals a structural shift in the country’s positioning within regional and global financial markets. The Vietnam IFC is not merely a new financial establishment, but a policy laboratory with differentiated roles dedicated to each of its hubs in Ho Chi Minh City and Da Nang.

Businesses that align their entry strategy with the specific orientation of each hub and factor in regulatory evolution will be best positioned to capture emerging opportunities while managing compliance and operational risks.

See also: Vietnam’s International Financial Center: Benefits and Opportunities

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