Ho Chi Minh City pushes ahead with $6.88bn financial hub

Ho Chi Minh City pushes ahead with $6.88bn financial hub

Ho Chi Minh City is accelerating plans to establish a $6.88 billion International Financial Centre (IFC), with local authorities instructed to finalise the project report this month.

In a conclusion issued on September 3, Vice Chairman of Ho Chi Minh City People’s Committee Nguyen Van Dung directed departments and relevant agencies to urgently coordinate and complete all preparatory steps for the IFC report within September, paving the way for the city’s most ambitious financial hub to date.

Photo: Le Toan

The city aims to finalise the report and proposals swiftly, keeping the IFC project on schedule.

Ho Chi Minh City Department of Finance has been tasked with leading the effort, in coordination with the Institute for Development Studies, including research on engaging an experienced consultancy to support the centre’s development and operations.

The Department of Culture and Sports will prepare communication materials ahead of the city’s implementation of the National Assembly’s resolution, while the Department of Construction will review existing plans in the Thu Thiem area. Any necessary adjustments will be proposed to ensure alignment with the IFC project, forming the basis for attracting strategic investors.

The National Assembly approved the resolution on developing international financial centres on June 27, with more than 93.5 per cent of delegates voting in favour. Effective from September 1, it provides a unified regulatory framework for centres in both Ho Chi Minh City and Danang, while allowing each locality to shape products suited to its own strengths.

In Ho Chi Minh City, the IFC is intended to offer a comprehensive range of financial products and services such as banking and capital markets, tied to asset and fund management services. It will also include experimental mechanisms (sandbox) for fintech, innovation, specialised exchanges, and derivative commodities.

In contrast, Danang will focus on green finance, fintech, digital services, and controlled trials of digital assets and currencies, aiming to attract investment funds.

The government aims for the Ho Chi Minh City IFC to commence operations by late 2025 and reach full completion within five years. The centre will span 783 hectares across Saigon and Ben Thanh wards in former District 1, as well as the Thu Thiem New Urban Area, including 719 ha of land and 64 ha of the Saigon River.

Development will begin with a 9.2-hectare core zone in Thu Thiem, which will house regulatory, supervisory, and financial adjudication agencies. The undertaking carries a preliminary investment estimate of VND172 trillion ($6.88 billion). Of this, around VND16 trillion ($640 million) will be allocated to the core zone in the first 2–3 years, including VND2 trillion ($80 million) from the state budget to build government offices. The balance will be mobilised from domestic and international strategic investors.

VIR