Vietnam’s International Financial Centres: Benefits and Opportunities for Investors

The Vietnamese government has laid out plans to create International Financial Centres (IFCs) in Da Nang and Ho Chi Minh City (HCMC) under Resolution 222/NQ-CP, which was passed in December 2024. The project marks a significant shift in the country’s strategy for integrating into global banking and courting foreign investment beyond traditional manufacturing.

Under the new resolution HCMC, the country’s economic and financial hub, has been chosen as the flagship location. Simultaneously, Da Nang is going to host a pilot IFC to test concepts of financial innovation along with cross-border activities, with a focus on the digital economy.

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The initiative is a strategic effort to strengthen Vietnam’s robust economic growth, increase its integration into global supply chains, and pursue its goal of becoming a service-oriented and knowledge-driven economy. By establishing IFCs, the government aims to position itself as a regional hub for investment, finance, and technological innovation, in line with its larger push for digital transformation and global integration.

Resolution 222 outlines a series of measures intended to align Vietnam with international regulatory and financial standards. The legislative changes are expected to align the country’s financial framework with global banking and securities regulations, thereby boosting market credibility.

Transparency and professionalism as key principles

Vietnam’s IFCs are designed to operate under a set of principles that emphasize transparency, professionalism, and alignment with international standards.

The state plays a central role in ensuring the independence of IFCs and their members while also recognizing and safeguarding lawful rights, including property, capital, income, and other legitimate interests.

Additionally, the government commits to attracting capital, advanced technology, modern management, high-quality human resources, and infrastructure investment.

Resolution 222 application alongside existing legal provisions

Investment and business activities within Vietnam’s IFCs are governed primarily by the resolution and its guiding regulations. Where the resolution does not provide explicit provisions, the existing laws of Vietnam apply.

Parties in investment and business transactions may also choose to apply foreign law. Specifically:

• For transactions involving at least one foreign individual or entity, the parties may agree to use foreign law, provided it does not contradict Vietnam’s fundamental legal principles. If no agreement is reached, the law of the country most closely connected to the transaction applies; and
• For transactions concerning ownership, leasing, or use of real estate as collateral, the law of the country where the property is located will prevail.

In terms of legal priority, where there are differences between Resolution 222 and other laws or resolutions of the National Assembly on the same issue, the provisions of the resolution take precedence. Subsequent legislation offering more favorable mechanisms or policies for IFC members, however, will apply instead. International treaties ratified by Vietnam will also take priority if their provisions differ from this resolution.

Operational regulations issued by the IFC’s governing body are given priority for issues within their defined scope. To safeguard national interests and security, the legal framework governing IFCs may also impose certain restrictions on members.

Registration for IFC memberships

To claim memberships in Vietnam’s IFCs, businesses must either register, obtain a license for establishment and operation, or be recognized by the administrative unit.

Organizations and enterprises can become members if they meet financial capacity, reputation, and business scope aligned with IFC development goals, except in the following cases:

• Foreign and domestic commercial banks must establish a presence in IFCs as specified in Resolution 222;
• Securities firms must operate as limited liability companies licensed by the State Securities Commission of Vietnam (SSC), with their activities restricted to IFCs and international markets; and
• Insurance firms must be established as a limited liability company licensed by the Ministry of Finance (MoF).

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Meanwhile, certain investors will become members of IFCs via recognition requests, without undergoing standard registration, including:

• Global Fortune 500 financial institutions, investment funds, or enterprises (or their direct parent companies), excluding banking, securities, and insurance; and
• Top 10 domestic financial institutions by charter capital (sector-specific, excluding banking, securities, and insurance).

Preferential policies in IFCs

Liberalized foreign exchange mechanisms

With Resolution 222, Vietnam will exempt IFC members, particularly 100% foreign-owned entities, from standard foreign exchange controls, enabling them to:

• Use foreign currencies freely in transactions among IFC members;
• Enjoy simplified processes for capital inflows and outflows; and
• Have increased flexibility in managing offshore accounts and cross-border payments.

Tax incentives

Corporate income tax (CIT)

New investment projects in priority sectors will be eligible for:

• 10 percent CIT for 30 years;
• CIT exemption of up to four years; and a
• 50 percent reduction on the payable tax for up to an additional nine years.

New investment projects in other sectors will be eligible for:

• 15 percent CIT for 15 years;
• CIT exemption of up to two years; and
• 50 percent reduction on the payable tax for up to four more years;

Businesses may choose to apply the most favorable incentive if their investment project is eligible for multiple CIT incentives.

Personal income tax (PIT)

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Resolution 222 grants a full PIT exemption until 2030 for certain individuals:

• Managers, experts, scientists, and highly skilled professionals, including both Vietnamese and foreign nationals; and
• Those earning income from transferring shares, stakes, or capital contribution rights to IFC members.

Immigration and labor reforms

To attract international talent, the IFC framework offers long-term visas and temporary residence cards valid for up to 10 years. It also provides permanent residency options for key investors, experts, and executives. Foreign professionals working in IFCs are exempt from work permits if they meet the professional standards set by the Government or the Executive body. Additionally, there are no labour quotas or labour market test requirements for hiring foreign staff.

These reforms are set to greatly lower administrative barriers and make Vietnam more appealing to global professionals.

Preferential land policies for investment projects

Vietnam has introduced preferential land use policies to attract long-term, high-value investment into its IFCs. These incentives include:

• Extended land use terms: Projects in priority sectors or those classified as large-scale may be allocated or leased land for up to 70 years, compared to a maximum of 50 years for other sectors. Upon expiration, investors can apply for extensions;
• Priority access to clean land banks: The government has committed to reserving clean land banks within IFC boundaries for projects in priority sectors;
• Collateral and financing advantages: Foreign-invested enterprises can pledge land use rights, if leased or allocated with lump-sum rent payments, and assets attached to the land at foreign credit institutions to secure loans; and
• Housing ownership rights: For real estate investment projects, foreign ownership of housing attached to land will be determined by the type of allocation or lease, in line with housing and land laws. This provides clarity and consistency for cross-border investors engaging in property-linked projects.

Opportunities for investors

Vietnam’s planned IFCs are positioned to attract both foreign and domestic investors by offering greater market access within an open, globally integrated regulatory environment. By lowering entry barriers and ensuring legislative certainty, the government aims to make the financial sector more attractive for long-term commitments.

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Foreign banks, insurers, and asset managers may view Vietnam as a competitive base for ASEAN operations, thanks to its relatively low costs and expanding financial infrastructure. At the same time, Vietnamese enterprises stand to benefit from improved access to global capital markets, enabling overseas expansion and deeper collaboration with international financial institutions. The IFC initiative also aligns with the National Digital Transformation Program, creating opportunities in areas such as artificial intelligence, blockchain-based applications, and digital payments.

In positioning IFCs as cost-effective alternatives to established regional hubs, Vietnam is signaling its intention to capture enterprises seeking to diversify their financial footprints in Asia. For investors looking for frontier prospects, IFCs represent an opportunity to participate early in a rapidly evolving sector with both domestic economic momentum and rising global connectivity.

Key considerations for businesses

Vietnam plans to pilot the first IFC in Da Nang between 2025 and 2028 before scaling to a national framework. This phased approach provides room to refine regulatory structures and strengthen investor confidence. Early implementation is expected to focus on fintech, capital market development, and sustainable finance.

Businesses should also anticipate adjustments to tax policies, licensing frameworks, and dispute resolution mechanisms as part of the rollout. The IFC agenda is closely tied to Vietnam’s broader investment promotion strategy, particularly Resolution 50, which emphasizes foreign direct investment and technology transfer. Companies will need to assess how IFC-related incentives interact with existing FDI policies.

Detailed guidance from the SSC and the MoF is expected in the coming years, covering compliance, investor protections, and operational standards. Success will depend on consistent lawmaking, predictable administration, and clear differentiation from existing hubs such as Hong Kong and Singapore.

Overall, Vietnam’s IFCs offer early entrants a chance to shape and benefit from a new financial architecture in the country. With deliberate engagement, first movers may secure a strategic advantage as Vietnam transitions into an emerging ASEAN financial hub.

With inputs from Vu Nguyen Hanh.

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