Upcoming Launch of the International Financial Center in Vietnam

On January 16th, Prime Minister Pham Minh Chinh, Head of the Steering Committee for the International Financial Center in Vietnam (the Committee), chaired the Committee’s first meeting. The session was attended by leaders from central ministries, departments, and authorities, as well as representatives from Ho Chi Minh City and Da Nang City.

Urgent Operationalization

During the meeting, the Committee reviewed the implementation of the Politburo’s conclusions and directives regarding the International Financial Center. They also discussed plans to further develop, operate, and grow the International Financial Center in both Ho Chi Minh City and Da Nang City.

Concluding the meeting, Prime Minister Pham Minh Chinh emphasized the need to use institutional frameworks as a breakthrough, considering it the core competitive advantage. “Vietnam started late but must selectively adopt the world’s best practices. The institutional framework must be superior, distinct, and aligned with international standards while also being suitable for Vietnam’s conditions, ensuring financial sovereignty, security, and data safety,” the Prime Minister directed.

The government leader also stressed the importance of having a professional management team, executives, experts, and workforce with integrity, talent, dedication, and a strong work ethic. This includes both recruiting and training local talent and attracting international experts.

The Prime Minister highlighted the critical role of infrastructure in the International Financial Center, stating it is the foundation. He noted that infrastructure encompasses not only physical elements like transportation, electricity, and water but also digital infrastructure, data security, network security, data centers, transaction platforms, identification systems, and information sharing.

He also emphasized the need for clear role definitions and complementary functions between Ho Chi Minh City and Da Nang City to avoid internal competition, overlap, and resource dispersion. “Central authorities set the direction; local governments take the lead in implementation; close coordination, data sharing, resource sharing, and experience sharing are essential,” the Prime Minister stressed.

The Prime Minister urged the swift drafting of a decree on special mechanisms and policies for the International Financial Center’s Governing Board, as well as the establishment of the Center’s operational regulations and the Governing Board’s working rules. Additionally, he called for the recruitment of personnel and the finalization of the Governing Board’s office setup. Ho Chi Minh City and Da Nang City were tasked with connecting their technology infrastructure to ensure data accuracy, completeness, cleanliness, and interoperability.

Opportunities for Green Capital Attraction

On the same day, at the workshop “Promoting Green Finance and Carbon Credit Trading in the International Financial Center” organized by the Ho Chi Minh City Department of Science and Technology in collaboration with the Ho Chi Minh City Institute for Development Studies (HIDS) and the Vietnam International Financial Center in Ho Chi Minh City (VIFC-HCMC), Mr. Pham Binh An, Deputy Director of HIDS, stated that Ho Chi Minh City aims to become a leading smart city, port, industrial, service, and international financial hub, while also leading the region in green economy and low emissions by 2050.

Specifically, during the green transition phase, according to the Ho Chi Minh City Green Transition Plan for 2025-2035, the capital requirement is approximately 900 trillion VND. This includes investments in key programs and projects across ten green transition pillars, as well as expenditures on digital infrastructure, data management, community training, and communication. VIFC-HCMC is expected to play a key role in attracting capital for Ho Chi Minh City’s green transition.

Mr. Shehryar Ali Shah, Head of the International Finance Corporation (IFC) Office in Ho Chi Minh City, emphasized that green finance will be a focal point for Vietnam’s International Financial Center in the future. He cited the World Bank Group’s National Climate and Development Report, which indicates Vietnam needs an additional $368 billion in climate-related investments by 2040, equivalent to 6.8% of GDP annually. “Public resources alone cannot meet this demand. Therefore, Vietnam must mobilize large-scale private capital, both domestic and international, underscoring the critical role of green finance,” Mr. Shehryar Ali Shah noted.

To achieve this goal, Mr. Vo Hoang Hai, Deputy General Director of Nam A Bank, proposed establishing a Green Finance Community. This community would serve as a multilateral cooperation platform, working alongside VIFC-HCMC to develop the carbon credit market and carbon trading platform in Vietnam. It would also promote initiatives in smart agriculture, climate finance, and sustainable supply chains. The Green Finance Community would focus on key product groups and solutions, such as green supply chain financing to support businesses in sustainable value chains, and developing green financing tools like green bonds to diversify medium and long-term capital sources.