Data from the HCMC Department of Finance showed that investors from the European Union’s 27 member states registered around $216.13 million in investment in the city during the first seven months of the year.

The Netherlands, France and Germany were the three largest contributors, with registered capital of $106.9 million, $83.7 million and $19.9 million, respectively, accounting for 97.4% of total EU investment.

Notably, about 96.9% of EU capital during the period came through additional capital injection and share purchases, highlighting strong confidence among European companies already operating in HCMC to expand their presence.

EU investment in the city has not been characterized by a large number of projects, but rather by high standards in corporate governance, energy efficiency, and sustainable development.

However, to create a breakthrough wave in finance, banking and high technology, HCMC needs the participation of global-scale financial institutions and investment funds. The National Assembly’s approval of Resolution 222/2025/QH15 on the establishment of an international financial center in HCMC is seen as a key step in creating an unprecedented policy framework.

A “red carpet” of tax and financial incentives

The biggest pillar in the strategy to attract leading European financial institutions is a package of tax incentives.

For new investment projects in priority sectors within the Vietnam International Financial Center-Ho Chi Minh City (VIFC-HCMC) will apply a preferential corporate income tax rate of 10% for up to 30 years. Investors will also be eligible for a maximum four-year corporate income tax exemption, followed by a 50% reduction in payable tax for up to nine subsequent years.

Beyond corporate incentives, HCMC recognizes that leading financial institutions can only thrive with a strong pool of high-quality professionals. Therefore, a personal income tax exemption on salaries and wages for managers, experts and highly qualified scientists, both domestic and foreign, working at the center has been approved through the end of 2030.

Meanwhile, the capital market will be further opened as innovative startups are allowed to raise funds through crowdfunding mechanisms or retail offerings on licensed platforms, a model widely used and favored by European venture capital funds.

International finance can only develop when capital flows freely, efficiently and securely. Addressing traditional barriers, the new legal framework for the VIFC-HCMC allows members to freely conduct foreign currency transactions, including payments, transfers, quotations, and investment valuation.

European investors will be able to transfer capital, profits and other lawful revenues abroad in foreign currencies through bank accounts opened within the center.

In particular, allowing the establishment of 100%-foreign-owned commercial banks and the adoption of international accounting standards (IAS/IFRS) will create a familiar operating environment for major financial institutions from Frankfurt, Paris and Amsterdam.

Regarding infrastructure and land, priority projects may receive land-use terms of up to 70 years on clean land prepared by the state. Administrative procedures will also be significantly streamlined: enterprises will only need to register technology and environmental requirements, without having to prepare detailed planning documents or obtain construction permits if their economic-technical reports have already been approved.

For strategic investors, HCMC may allocate land without auction and provide support for site clearance costs.

Sandbox and VND5 trillion ($191 million) venture capital fund

To capitalize on Europe’s growing green finance and fintech trends, HCMC has taken the lead in introducing a controlled testing mechanism (sandbox) for new products, technologies and business models.

Innovative startups and green finance issuers will receive special incentives and direct support from the local budget.

The ambition was further demonstrated through the establishment of the Ho Chi Minh City Venture Capital Fund Joint Stock Company. The fund has an initial charter capital of VND500 billion ($19.12 million), with the state budget contributing 40% and private investors providing the remaining 60%, and aims to increase its scale to at least VND5 trillion ($191.18 million) by 2035.

The initiative brings together major companies and investors including Sovico, Vingroup, VinaCapital, Becamex IDC, VNG, FPT, and Lotte Ventures.

The fund will focus on strategic sectors such as artificial intelligence, big data, semiconductor chips, biotechnology and renewable energy - areas considered strengths of leading European technology and financial groups.

Meanwhile, Resolution 13/2026/NQ-HĐND issued in June 2026, which provides land rent exemptions ranging from six years to the entire lease period for non-profit and socialised projects, will further strengthen efforts to attract EU-backed R&D centers and high-quality training infrastructure.

Moving from an approach focused on attracting FDI by volume to one of selecting high-quality investors, HCMC is entering a new phase of investment attraction.

Breakthrough incentives on taxation, visas of up to 10 years for investors and their families, along with a one-stop immigration mechanism, demonstrate the city’s determination to create a more competitive investment environment.

By building an advanced legal framework aligned with international practices, HCMC aims not only to maximize opportunities from the EU-Vietnam Free Trade Agreement (EVFTA) but also to position itself as a leading destination for high-quality European financial capital in the new era.

Vietnam is building its International Financial Center, located in both HCMC and central Vietnam hub Danang.