THE HANOI TIMES — Prime Minister Pham Minh Chinh has officially announced the establishment of an International Financial Center (IFC) in Vietnam, to be located in Ho Chi Minh City and Danang, marking a major step in the country’s economic and financial development strategy.

The announcement was made at a national conference held on December 22, where the Ministry of Finance said the move reflects Vietnam’s determination to create new growth drivers, attract global capital and enhance its competitiveness in regional and international financial markets.

Addressing the conference, Prime Minister Chinh said the global economy is facing strong headwinds due to conflicts, fragmentation and disruptions to supply chains.

"Against this backdrop, Vietnam stands out as a rare bright spot for economic growth, political and social stability and sustainable development," said Chinh.

He reaffirmed Vietnam’s commitment to an independent and self-reliant foreign policy that promotes diversification and multilateral engagement, stressing the country’s goal of being a trusted partner and responsible member of the international community.

Vietnam has established comprehensive strategic and strategic partnerships with most major economies, including the US, China, the EU, the UK, Russia, Japan, South Korea, India and Australia, he added.

“The stability of Vietnam, including its macroeconomic foundation and development outlook, is the safest anchor and the most highly valued asset that global financial investors are always seeking,” the government leader said.

Chinh also pointed out that the global center of economic activity is shifting rapidly toward the Asia-Pacific region. With its favorable geoeconomic position and deepening integration, Vietnam is well placed to seize this opportunity and develop into a hub for the flow of capital, goods, technology and talent.

In the context of accelerating digital transformation and cross-border capital movement, the Prime Minister said the establishment of an international financial center is an urgent requirement grounded in Vietnam’s potential, strengths and long-term vision for rapid and sustainable development.

The international financial center is also expected to attract investment resources and new growth drivers, helping Vietnam move up the global value chain. It would allow the country to capitalize on favorable conditions to draw global capital, goods, technology and talent.

“Vietnam cannot afford to miss this opportunity. We must seize it to create new momentum for fast and sustainable growth and to strengthen competitiveness at the regional and global levels,” he said.

Leaders of Ho Chi Minh City and Danang said the two cities are determined to help position Vietnam as a credible, attractive and responsible financial destination in the region and worldwide.

Representatives of domestic and international businesses, investors and financial institutions pledged to help channel global capital into Vietnam. They plan to roll out financial and banking mechanisms while stepping up investment in digital transformation, green finance and inclusive finance.

Nguyen Phuong Thao, permanent vice chairwoman of the board of directors of HDBank, said the establishment of the international financial center shows that Vietnam is not only attracting capital but also drawing in intellect, technology and sustainable values.

She said Vietnam is building a streamlined, digital and interconnected system of procedures within the international financial center, alongside a competitive yet principled tax incentive framework.

Regulators are also designing sandbox mechanisms for financial innovation, a more open but secure foreign exchange environment and a robust international arbitration system to protect investor confidence.

Sharing the same view, Tyler Brent McElhaney, country director of Apex Vietnam Services IFC, said the international financial center reflects the strategic vision of Vietnam and the two cities.

“This is clear evidence of a country that is confidently asserting its position in the global financial system and the future of digital finance while creating an open and transparent investment environment,” he said.

The legal foundation for the IFC was laid earlier this year when the National Assembly issued Resolution No. 222 on June 27, providing the first legal framework for the center’s establishment and operation. 

Under the approved model, the IFC will be overseen by a Governing Council headed by Standing Deputy Prime Minister Nguyen Hoa Binh, supported by two executive bodies based in Ho Chi Minh City and Danang.