VIFC set to raise the bar for Ho Chi Minh City’s office market

VIFC set to raise the bar for Ho Chi Minh City’s office market

Vietnam's International Financial Centre is expected to add substantial office space to Ho Chi Minh City's market while raising competitive standards across the sector.

Speaking at an event in Ho Chi Minh City on June 18, Bui Viet Linh Dan, senior investor relations specialist at Vietnam's International Financial Centre (VIFC), said the centre is being positioned to attract a wide range of financial activities, including banking, fintech, bond markets, commodity trading, and international financial service providers.

"These occupiers typically have stringent requirements regarding office quality, technical standards, and the overall working environment," Dan said. "The arrival of global financial institutions often generates strong demand for Grade A office space. Similar patterns have been observed in major financial centres such as Singapore, Dubai, and Hong Kong, where investment banks, asset management firms, international law firms, and fintech companies are concentrated in office districts built to international standards."

“VIFC in Ho Chi Minh City is being envisioned as far more than a standalone real estate development or a free trade zone. Instead, it is a strategic initiative aimed at establishing the institutional infrastructure, market framework, and operational ecosystem necessary to support international financial activities in the city,” Dan added.

In terms of its development roadmap, the legal framework is expected to be largely completed in 2025, followed by a phase of institutional building, enhanced connectivity, and ecosystem development in 2026, before moving towards full market activation in 2027.

“Licensed participants operating within VIFC will be able to access a range of preferential policies and support mechanisms, including tax incentives, foreign currency conversion facilities, USD-denominated accounts, international arbitration services, and regulatory sandbox frameworks for fintech and digital asset activities,” she added.

Beyond location and rental rates, these organisations typically impose stringent requirements on building quality, operational technology, sustainability standards, and connectivity to surrounding infrastructure.

This trend has already begun to take shape in Ho Chi Minh City's office market. A recent survey from commercial real estate services provider CBRE found that companies no longer view offices merely as workplaces. Instead, factors such as indoor air quality, environmental monitoring systems, employee wellbeing, and collaborative workspaces are becoming top priorities.

As many as 92 per cent of respondents said that collaborative spaces and internal networking areas play an important role in enhancing corporate culture and improving productivity. At the same time, green building standards are increasingly becoming a prerequisite for premium office developments.

According to Le Trong Hieu, senior director at CBRE Vietnam's Office and Industrial Services, Ho Chi Minh City's office market is witnessing a clear shift towards higher-quality buildings as companies place greater emphasis on enhancing their brand image and improving the working environment for employees, particularly younger talent.

CBRE's survey found that employee experience has become a key factor in office leasing decisions, cited by as many as 84 per cent of respondents.

“This trend is expected to gain further momentum with the establishment of the International Financial Centre in Ho Chi Minh City, which is likely to attract a new wave of tenants with more demanding requirements, particularly international corporations,” Hieu said.

“Since 2020, Grade A office rents in Ho Chi Minh City have recorded average annual growth of around 2 per cent. Against this backdrop, demand for buildings with superior construction quality and operational standards, integrated modern amenities, and prime locations, especially within the city's financial core, is expected to remain strong in 2026. Grade A rents are also projected to accelerate, with annual growth potentially reaching 3-4 per cent,” he added.

According to CBRE, this trend is expected to accelerate further as Ho Chi Minh City attracts more financial institutions, investment funds, and international technology companies through the development of VIFC.

Richard Mark Leech, representative of the IFC Fintech Hub and Saigon Marina IFC Executive Office, said that the development of an IFC depends on modern physical infrastructure as well as a long-term vision, a supportive policy environment, and the ability to connect global resources.

“Saigon Marina IFC is being developed with the ambition of becoming an international-standard office and commercial complex, bringing together businesses, financial institutions, investors, and a global community of professionals. More importantly, it is envisioned as a gateway connecting new flows of finance, trade, technology, knowledge, and investment, thereby creating broader development opportunities for the business community in Vietnam,” Leech said.

Saigon Marina IFC is being developed in line with the Transit-Oriented Development model, with direct access to Ba Son Station on Metro Line 1. The project is also strategically connected to the city's road and waterway networks, as well as future key infrastructure developments.

This prime location enables businesses to quickly access administrative, financial, and commercial centres, as well as the Thu Thiem New Urban Area, which is being positioned as Ho Chi Minh City's next major growth engine.

VIR