Vietnam has advanced a long-awaited plan to establish an international financial centre in Ho Chi Minh City and Danang. The reforms aim to liberalize foreign exchange, attract capital, and develop a regional finance hub despite rising U.S. tariff threats.
Policy Update Overview
The Vietnamese government presented its 30th draft plan to parliament, outlining policies to liberalize foreign currency use, ease banking regulation, expand capital markets, and offer tax incentives. Key objectives include attracting international investors and integrating Vietnamese financial institutions into global standards.
Capital and Trade Signals
Vietnam’s appeal is underscored by a 7.9% year-on-year increase in foreign direct investment through May. Nevertheless, looming U.S. tariffs threaten export-dependent sectors. The financial centre aims to serve as a hedge by transforming Vietnam into a finance-led regional node, complementing its manufacturing strength.
Institutional Implications
For Singapore bankers and family offices, Vietnam’s financial centre could open doors for partnerships, strategic capital placement, and co-investment opportunities. Its policy focus on streamlined operations and foreign participation marks a shift toward market openness and institutional sophistication.
Long-Term Outlook
If lawmakers approve the plan, implementation may begin by year-end. Key milestones to watch include regulatory roll-outs, licensing frameworks, and early capital market infrastructure development.
Editor’s Note
Vietnam’s financial centre effort reflects ambition: catch global capital while mitigating export vulnerability. Execution speed and regulatory clarity will determine its success.
Tags
Vietnam finance hub, ASEAN finance centre, capital market reform, foreign investment