When investors think of global finance, Vietnam is not usually the first name on the list. It is better known as a fast-growing manufacturing hub and an emerging player in Southeast Asia’s digital economy. That image, however, may begin to shift. From September 2025, a new legal framework for International Financial Centres (IFCs) will take effect, aimed at positioning Ho Chi Minh City and Da Nang as destinations for fintech, green finance, and global investment. 

The framework reflects Vietnam’s long-term goal of becoming a financial hub by 2045, but the outcome will depend on whether the country can turn these incentives and policies into measurable results.

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How Vietnam is making strides

A new Resolution passed in 2025  by the National Assembly is a landmark. It establishes executive and supervisory agencies dedicated to managing IFCs, grants them authority to override conflicting local laws to align with international norms, and even sets up a specialised IFC court and arbitration centre to settle disputes. This is more than signalling a change; it is Vietnam attempting to address the very issues investors often flag, from legal certainty to enforceability of contracts.

To put this into practice, the government has mapped out distinct roles for its two IFCs: Ho Chi Minh City’s Thu Thiem New Urban Area and parts of District 1 will focus on capital markets, fintech, and investment banking, while Da Nang has been earmarked for digital and green finance supported by regulatory sandbox models that encourage experimentation. 

The incentives are equally striking: reports suggest rates could be as low as 10% for extended periods. Taken together, it is a package designed to attract both global firms and high-skill professionals.  

Signs of momentum: Vietnam’s current position

Vietnam’s ambition is not starting from scratch. In March 2025, Ho Chi Minh City rose seven spots in the Global Financial Centres Index (GFCI), ranking 98th out of 119 centres with a score of 654—its best performance since entering the index in 2022. While this still places it far behind Singapore or Hong Kong, the upward movement signals that perceptions are shifting.

On the domestic front, the fintech sector is one of the fastest-growing in Southeast Asia, with mobile wallets and digital payments leading the charge. Local unicorn MoMo has expanded from payments into consumer services, showing the scale of adoption and investor appetite. Private equity activity is also increasing, with Mekong Capital investing across consumer, education, and healthcare sectors, a sign that capital flows are diversifying.

Green finance is beginning to establish a footprint as well. In late 2024, the Hoa Binh–Xuan Mai Water Supply project issued VND 875.1 billion (about USD 34.5 million) in green bonds—the country’s first verified green project bond in the water sector and the longest-tenor project bond in Vietnam to date at 20 years. Backed by GuarantCo and aligned with ICMA Green Bond Principles, the issuance attracted major institutional investors, including Chubb Life Vietnam, Hanwha Life, AIA, and Generali.

Vietnam’s major banks have also joined the market. The Bank for Investment and Development of Vietnam (BIDV) issued VND 3,000 billion (roughly USD 120 million) in five-year green bonds in 2024, while Vietcombank raised VND 2,000 billion (around USD 80 million) with a 2-year tenor. Meanwhile, SeABank, with support from the International Finance Corporation (IFC), launched its first green and blue bond, linking financing not only to environmental goals but also to ocean economy priorities.

Although Vietnam’s sustainable bond market is still small compared to regional peers, these issuances demonstrate real progress. They provide track records for regulators, build investor confidence, and offer a foundation for the IFC framework’s green finance ambitions.

The challenges ahead

While these developments highlight genuine momentum, they also underline how much remains to be done. A specialised IFC court and arbitration centre may provide reassurance on paper, but Vietnam must still prove it can deliver predictable and transparent dispute resolution. Investors care as much about the enforcement of rules as the rules themselves, and trust takes time to establish. For Vietnam, this means not only setting up new institutions but demonstrating consistency in how cases are handled, how quickly disputes are resolved, and how judgments are enforced across borders.

There are also gaps in talent and infrastructure that cannot be overlooked. Competing with established hubs requires more than tax breaks; it calls for deep pools of financial professionals, robust digital systems, and globally competitive advisory services in law, compliance, and auditing. Singapore, for example, has spent decades nurturing its professional services sector, while Hong Kong has a long history of financial and legal expertise. Vietnam will need to scale up training programmes, attract returning overseas Vietnamese professionals, and encourage partnerships with global firms to bridge these gaps.

External pressures add another layer of complexity. As an export-driven economy, Vietnam is vulnerable to U.S.–China trade tensions, foreign exchange volatility, and wider capital market fluctuations. If global investors perceive instability in trade policy or currency management, they may hesitate to route funds through Vietnam’s IFCs. Maintaining macroeconomic stability will therefore be as important as legal reform.

Finally, the competitive landscape in Asia is intense. Singapore continues to dominate global rankings, while Hong Kong remains resilient despite political turbulence. Even second-tier hubs, such as Kuala Lumpur and Bangkok, are building niches in Islamic finance and regional capital flows. Vietnam will need to decide whether it wants to challenge these centres head-on or differentiate itself in areas like fintech and sustainable finance, where barriers to entry are lower and regional demand is rising.

Ho Chi Minh City and Da Nang are building niches in fintech and sustainable finance

Vietnam has made its boldest move yet to reposition itself on the global financial map. The IFC framework, with its combination of legal reforms and targeted incentives, demonstrates a strong political will to transform Ho Chi Minh City and Da Nang into more than just fast-growing urban economies. Rising GFCI rankings, a booming fintech sector, and green bond issuances that are slowly gaining traction all suggest the groundwork is being laid.

But turning vision into reality will require more than policy announcements. Building investor trust, nurturing deep financial talent, and maintaining macroeconomic stability will be the true test. The real measure of success will come not in the number of tax incentives offered, but in whether global investors view Vietnam as a place where capital is safe, disputes are fairly resolved, and opportunities outweigh risks.

If Vietnam can prove that over the next decade, it won’t just diversify its economy—it could redefine its role in Asia, moving from the factory floor to the trading floor. That transformation, if achieved, would be one of the most significant economic shifts in the region’s recent history.