Ho Chi Minh City, Vietnam’s principal economic powerhouse, has announced a strategic plan to mobilise a total of 172 trillion dong (approximately US$6.6 billion) over the next five years to establish an international financial centre (IFC). This development marks a significant step in the city’s ambition to position itself as a global financial hub.
The proposed IFC will be located across two key areas — District 1 and the Thu Thiem New Urban Area — encompassing a total area of 783 hectares. The initial phase will focus on the development of a 9.2-hectare core zone in Thu Thiem, situated on the eastern bank of the Saigon River directly opposite District 1. This area will serve as the administrative nucleus, housing key regulatory and governmental institutions.
The city is currently seeking an investment of 14 trillion dong for this phase, in addition to a further two trillion dong from state revenue sources. At present, the site remains undeveloped, earmarked for foundational infrastructure including roads, electricity, water supply, telecommunications, and lighting.
Thu Thiem, incorporated into the city’s master plan since 1996, spans 930 hectares, of which 770 hectares are designated for urban development and 160 hectares for resettlement. The area is projected to support a population exceeding 200,000.
Nguyen Van Duoc, Chairman of the municipal People’s Committee, reaffirmed the city’s preparedness to assume the role of an IFC. “Ho Chi Minh City, as a major economic hub, recorded a gross regional domestic product (GRDP) of US$73.8 billion last year, accounting for 15.5% of Vietnam’s GDP,” he said. “The city also hosts over 50% of the nation’s fintech startups.”
A 29-member steering committee, chaired by Party Secretary Nguyen Van Nen, has been established to oversee the centre’s development. While the concept of an IFC has been under consideration for several years, this initiative marks the most concrete progress to date.
The draft proposal outlines a multi-faceted financial ecosystem, incorporating banking, money markets, capital markets, and derivatives trading. Special mechanisms and preferential policies are expected to attract financial institutions such as banks, investment funds, and service providers. There will also be dedicated trading platforms for securities, currencies, and commodities, with a focus on aligning fintech developments to international standards.
In parallel with Ho Chi Minh City’s initiative, the central government is also planning an IFC in Da Nang, reinforcing a nationwide strategy to integrate Vietnam more deeply into global financial markets.
Industry experts emphasise the importance of adopting international best practices, particularly in emerging sectors like fintech. However, they also caution that implementation must be meticulously phased and strategically aligned with each city’s distinct advantages.
While IFCs are well-established globally, the concept remains relatively nascent in Vietnam. Nonetheless, successful execution could significantly enhance the country’s financial landscape by drawing foreign capital, expanding investment opportunities, and delivering high-quality financial services to both domestic and international enterprises.
-Viet Nam News
