Ho Chi Minh City (VNA) – Singapore’s United Overseas Bank (UOB) is exploring membership in the Vietnam International Financial Centre (VIFC), a project meant to connect domestic, global and regional capital flows.

The VIFC is designed to act as a bridge linking foreign investors with the Vietnamese market while channelling capital from Singapore and across ASEAN into Vietnam.

UOB said it plans to build a new headquarters in Ho Chi Minh City, with a ground-breaking ceremony planned for July. The site sits within the designated VIFC-Ho Chi Minh City (VIFC-HCMC) zone.

UOB is the sole Singaporean bank operating a fully owned banking subsidiary in Vietnam. With charter capital of 10 trillion VND (379.76 million USD), UOB Vietnam ranks as the country’s second-largest wholly foreign-owned bank. The completed integration of Citi Vietnam’s retail banking business into UOB in July 2025 substantially widened its customer base, extended its market reach and deepened its local competitive position.

The bank’s foreign direct investment (FDI) advisory unit has supported more than 400 companies on investment projects in Vietnam, with total commitments of around 9 billion SGD (7.04 billion USD) and the creation of more than 60,000 jobs, according to the bank.

Its Deputy Chairman and CEO Wee Ee Cheong described Vietnam as a key market in the bank’s ASEAN strategy and one of Southeast Asia’s most dynamic and resilient economies.

Wee said Vietnam’s economic transformation and its growing role inside regional value chains are opening up growth opportunities for both businesses and investors.

He also reiterated the bank’s commitment to the Vietnamese market through initiatives that boost cross-border trade, facilitate FDI and deliver financial solutions to companies.

Speaking at a recent forum, Assoc. Prof. Dr. Nguyen Huu Huan, Vice Chairman of the VIFC-HCMC Executive Board, said more than ten international banks and financial institutions have signalled intentions to become VIFC members.

Those names include global heavyweights JPMorgan, Bank of America, Bank of China and Mitsubishi UFJ Financial Group. None have been able to join yet because of legal hurdles, chief among them are credit rating requirements.

Under the Government’s Decree 329/2025/ND-CP, which covers bank licensing and operations, foreign exchange management, anti-money laundering, and counter-terrorism financing inside the VIFC, foreign banks and financial institutions seeking licenses to establish wholly foreign-owned commercial banks or branches within the VIFC must prove international operating experience and meet strict credit rating thresholds.

Specifically, applicants must hold a rating of at least AA- from S&P or Fitch, or Aa3 from Moody’s, based on the most recent rating at the time of application, with a stable or better outlook.

Several financial experts proposed reviewing and potentially relaxing the credit rating criteria for foreign institutions looking to enter the VIFC. They argued that more flexible requirements in the hub’s early development phase could make the centre more attractive and pull in broader participation from international financial organisations./.