Sunday, 27/07/2025
   

The ideal time for a new financial hub

The establishment of an international financial centre in Ho Chi Minh City is a vital step amid Vietnam’s rapidly evolving economy. Truong Bui, managing director for Roland Berger in Vietnam, analyses the city’s role as the nation’s premier economic and financial hub.
 financial hub
Truong Bui, managing director for Roland Berger in Vietnam

On January 4, the Ministry of Planning and Investment and the people’s committees of Ho Chi Minh City and Danang revealed an action plan on building regional and international financial centres (IFCs) in Vietnam. This decision is not only an important step for the two cities, but also a major national strategy aimed at making Vietnam a significant financial hub for the region and beyond.

Strategically positioned in Southeast Asia and bolstered by its increasingly advanced transport infrastructure, Ho Chi Minh City is solidifying its role as the nation’s premier economic and financial hub. As of late 2024, Ho Chi Minh City contributed over 22 per cent of the country’s GDP with a total of $4.85 billion in foreign direct investment, showcasing its pivotal role in the country’s economic landscape. It hosts the nation’s highest concentration of financial institutions, accounting for a quarter of total national capital mobilisation and nearly 30 per cent of outstanding loans.

Specifically, the Ho Chi Minh Stock Exchange captured an impressive 95 per cent of total market capitalisation and contributed over 54 per cent to national GDP.

According to Roland Berger’s expertise, Ho Chi Minh City can learn from successful models such as Singapore, Hong Kong, Dubai, and Dublin, while adapting to the city’s specific conditions and realities.

For instance, Singapore focuses on developing asset management and fintech industries, Hong Kong implements policies to attract international banks, and Dubai stands out with its free trade zone policies and incentives.

Serve as a driving force

Roland Berger suggests that Ho Chi Minh City should establish a clear and practical development roadmap for its IFC, starting with building a solid financial foundation in the city centres, then transitioning into a regional centre, and ultimately becoming a global hub.

The IFC in Ho Chi Minh City will follow a 1+3 model, with its core being an international hub and three supporting hubs focused on green industries, healthcare, and education and training, creating a comprehensive financial ecosystem. This centre will concentrate on developing core financial products, including monetary markets and banking systems, stock markets, corporate bond markets, and commodity markets.

Ho Chi Minh City’s financial centre will not only symbolise economic growth but also serve as a driving force for knowledge, technology, and innovation. Supported by government incentive policies and significant investments in modern infrastructure, the centre will foster a vibrant ecosystem where multinational corporations, small- and medium-sized enterprises, and startups can collaborate and thrive.

This foundation will enhance workforce capabilities, strengthen organisational capacities, and bridge the gap between the business community and government. It will provide an environment where innovative ideas can be transformed into reality. Moreover, it will pave the way for breakthroughs in products, governance methods, and the convergence of advanced knowledge and technology.

Ho Chi Minh City must focus on several key enablers to realise its ambition of becoming a comprehensive IFC. Firstly, a highly skilled workforce with exceptional expertise is the foundation, requiring the city to establish leading schools and educational institutions within the area.

Concurrently, the city should build a modern community accompanied by startup accelerator programmes to foster innovation in finance, creating a living and working environment for top financial professionals.

Next, comprehensive upgrades to transportation connectivity are essential, ensuring smooth transit between the financial hub, Tan Son Nhat and Long Thanh international airports, and the regional transportation network. Investment in ICT infrastructure and data centres is also crucial to ensure data security and drive fintech innovation.

Finally, a business-friendly environment with attractive incentives is indispensable, ranging from startup support and attracting multinational corporations to facilitating access to financial resources. These factors will serve as a powerful catalyst for Ho Chi Minh City to attract investment and achieve sustainable development.

financial hub

The time for strong policies

Drawing from our strategic consulting expertise and lessons from leading IFCs, Ho Chi Minh City should decisively implement groundbreaking policies, innovative strategies to draw in developers and investors, and general incentives to shape itself into a world-class IFC in Vietnam.

Firstly, the city could consider introducing exceptional tax incentives, such as reducing corporate income tax to 10 per cent for 15 years, offering full tax exemptions for the first four years, and reducing tax by 50 per cent for the following nine years. Similar to the models of Dubai and Dublin, tax exemptions and reductions for fund management entities will encourage leading investment funds to establish a presence in the centre and promote green finance with support from the World Bank and the State Bank of Vietnam.

Secondly, in terms of attracting developers and investors, Ho Chi Minh City can take inspiration from Dubai by developing modern infrastructure within a 25km radius and integrating cutting-edge technology to create optimal development conditions.

Additionally, fintech companies should be given priority through infrastructure support and tax incentives, modelled after Switzerland’s approach to fostering an innovative ecosystem.

Finally, general incentives should focus on attracting international talent. For instance, Ho Chi Minh City should adopt a fast-track visa programme, granting senior professionals visas within 15 days, or waiving licensing fees for the first year, as seen in Busan in South Korea. These policies and incentives will not only give Ho Chi Minh City a competitive edge but also position it as a modern financial hub, leading in fintech and green banking across the region and globally.

With these strategic steps and actionable solutions, we believe that Ho Chi Minh City can aspire not only to become Vietnam’s first international financial hub but also to establish its position on the global financial map, symbolising innovation, creativity, and sustainable development in the new era.

  • Capital poured into agriculture, rural areas

    Capital poured into agriculture, rural areas

    Credit growth for agriculture and rural development in Việt Nam rose 5.31 per cent in the first half of 2025 compared to the end of 2024, accounting for 23.16 per cent of the country’s total outstanding loans.

  • Interest rate developments applied by credit institutions in June 2025

    Interest rate developments applied by credit institutions in June 2025

    State Bank of Vietnam has just released the interest rate developments of credit institutions in June 2025

  • Interest rate cut requires a trade-off in foreign exchange rate

    Interest rate cut requires a trade-off in foreign exchange rate

    Phạm Chí Quang, Director of the State Bank of Vietnam (SBV)’s Monetary Policy Department, talks about the cause of the đồng devaluation and forecasts the đồng in the second half of 2025.

  • SBV Action Plan to implement the National Strategy on Green Growth

    SBV Action Plan to implement the National Strategy on Green Growth

    State Bank of Vietnam (SBV) has coordinated with the German Agency for International Cooperation (GIZ), the International Finance Corporation (IFC), and the Swiss Secretariat for Economic Affairs (SECO) in organizing a Workshop to promote the implementation of the Banking Sector's Action Plan to implement the National Strategy on Green Growth for the period 2021 – 2030, and the Launching Ceremony of the Handbook on Environmental and Social Risk Management System in Credit Granting Activities.

  • Autonomy and stability balanced via credit reform

    Autonomy and stability balanced via credit reform

    The State Bank of Vietnam is setting out a roadmap towards removing credit growth ceilings, accompanied by efforts to enhance the autonomy of credit institutions.

  • More than 86 million bank accounts to be terminated from September 1

    More than 86 million bank accounts to be terminated from September 1

    The SBV stated that the deletion of over 86 million bank accounts was considered a system cleanup measure.

  • Vietnamese banks set for growth on major policy shift

    Vietnamese banks set for growth on major policy shift

    Experts believe that if managed properly, lifting credit room restrictions will enhance lending flexibility, allowing for a more natural adjustment of capital supply and demand, thereby facilitating investment and production needs in the economy.

  • Completing the legal framework for green finance development

    Completing the legal framework for green finance development

    On July 15, 2025, in Hanoi, the Policy Committee of the Vietnam Banks Association (VNBA) successfully organized a Seminar with the theme "Completing the legal framework to facilitate the operations of credit institutions related to green finance". The event brought together many leading experts, representatives of management agencies and financial institutions to discuss solutions to promote the sustainable development of green credit in Vietnam, in line with the country's potential and goals.

  • Vietnam Banks Association debuts its Risk Committee

    Vietnam Banks Association debuts its Risk Committee

    On July 16, 2025, in Hanoi, the Vietnam Banks Association (VNBA) officially announced and launched the Risk Committee under the Association Council.

  • Data is crucial for banking industry to move to new development phase

    Data is crucial for banking industry to move to new development phase

    The banking industry, one of the leading fields in applying technology and digitalising services, has all the conditions to move to a new development phase where data is considered the centre for all operations, decision-making and customer service, Vice Chairman and General Secretary of the Vietnam Banks Association (VNBA) Nguyễn Quốc Hùng said on Wednesday.

Calculate deposit interest
VNĐ
%/year
month
Calculate deposit interest

Loan calculation
VNĐ
%/year
month
Loan calculation