Vietnam’s two-city financial hub lures US$21 billion in six months

VIETNAM, HO CHI MINH CITY, DA NANG, SINGAPORE, MALAYSIA, KUALA LUMPUR, ASEAN, HANOI, THU THIEM NEW URBAN AREA, SAIGON RIVER, LONG THANH INTERNATIONAL AIRPORT, DA NANG BAY, SOFTWARE PARK NO 2, 28 AUGUST 2026 —

Vietnam’s Vietnam International Financial Centre (VIFC) has secured about US$21 billion in capital commitments within six months of its launch, with Ho Chi Minh City already acting as the primary gateway.

Da Nang, the beach city chosen for fintech and innovation, is still building its investor pipeline, with 12 official members, 11 prospective investors that have submitted expressions of interest, and more than 90 others exploring opportunities, according to the executive authorities of VIFC-HCMC and VIFC Da Nang.

Vietnam is positioning the VIFC as a real-economy hub rather than a Singapore-style replica. Rich McClellan, CEO of VIFC-HCMC, told The Business Times the centre aims to connect global investors directly to Vietnam’s domestic growth story.

“We are building a distinctive, real-economy-anchored financial hub,” he said. “Rather than competing with established regional centres, our competitive edge lies in direct connectivity to one of Asia’s fastest-growing real economies.”

Vietnam’s credit-to-GDP ratio reached 145% in 2025, the highest in ASEAN, according to World Bank figures. The government estimates it needs US$76 billion a year through 2030 from capital markets to ease reliance on bank lending, which is dominated by short to medium-term loans.

“Banks prefer to extend short to medium-term loans because their funding is largely drawn from shorter-term deposits,” said Muralidharan Ramakrishnan, head of Asia-Pacific utilities at Fitch Ratings. “This creates a shortage of long-term funding for Vietnam as it expands transport networks, ports, airports and energy – infrastructure projects that require financing over more than a decade.”

“The ability to attract offshore capital across debt and equity will remain key,” he added, pointing to initiatives such as the VIFC. “Based on discussions, market participants do not expect VIFC to start attracting large capital immediately. It’s going to take time, because many of these policies and processes are still evolving.”

Early commitments have centred on physical infrastructure. VIFC-HCMC covers about 898 hectares spanning the existing central business district and the Thu Thiem New Urban Area on the Saigon River. Major local banks including Vietcombank, MB and HDBank have said they plan to open units in the area.

Sun Group broke ground in April on the US$1.14 billion Central Square and new HCMC Administrative Centre. UOB began construction in July on a US$450 million purpose-built headquarters.

Da Nang has designated around 300 hectares for its VIFC, including a 6.17-hectare core financial district and roughly 282 hectares within a sea-reclamation development along Da Nang Bay. Its initial infrastructure includes part of the newly built Software Park No 2, a 20-storey building with about 27,000 square metres of floor space designated for investment funds, tech firms and sandbox activities.

McClellan cautioned that the physical development must match market absorption. “Development pacing will closely track market demand through the city’s master planning and investment processes,” he said. “The institutional and regulatory core should be established first to avoid speculative overbuilding.”

Vietnam’s Prime Minister Le Minh Hung has pressed officials to ensure the VIFC offers tradable products rather than empty infrastructure. At an April meeting, he compared the centre with a marketplace without merchandise or trading rules.

“You build the market and then there are no stalls, no management rules, and nobody knows where to buy or sell,” he noted. “How can investors come?”

By June, Hung urged agencies to start with a smaller set of priority products such as medium and long-term financing instruments, including government and project bonds linked to critical municipal infrastructure. Capital raised through the centre, he said, should “flow deep into the territory,” rather than circulate within the VIFC.

To attract international institutions, Vietnam is promising predictability. The July plan calls for a transparent and stable legal framework consistent with international practices, mechanisms for resolving disputes and recognising international awards, and simplified digitalised administrative procedures.

McClellan said the VIFC intends to allow global institutions to operate in English and US dollars, rely on common-law principles and international judges, and adopt clearer mechanisms for foreign-exchange convertibility and cross-border capital movement.

“Investors want to get money in and out in a predictable fashion,” he told a Savills property-market event in August.

Detailed frameworks covering capital-flow mechanics, fund structures, tax treatment and licensing for banks, custodians and asset managers within the VIFC are expected to be finalised over the next six to 12 months. The transition from pre-licensing engagement to formal operations is expected to be phased in throughout 2027.

On Aug 17 the VIFC launched a one-stop platform for membership registration and accreditation, although specialised financial and banking institutions still need to follow separate licensing tracks.

“The true measure of VIFC’s success will be recurring transaction activity and capital retention,” McClellan said. “The VIFC’s credibility will ultimately come from its members, rules, products, supervisory standards and capital flows – not the physical towers.”