The National Assembly Standing Committee recently provided feedback on a draft resolution of the National Assembly regarding the establishment of an International Financial Center (IFC) in Vietnam. A key new proposal is the Government’s suggestion of a “one center – two locations” model, which replaces the previous plan to establish two separate centers. One center in two cities Permanent Deputy Prime Minister Nguyen Hoa Binh stated that during international engagements, many foreign partners were surprised by Vietnam’s initial plan to establish two international financial centers. Even major economies like China have only one financial center, which is located in Shanghai, while Singapore leads as the financial hub in ASEAN. Given that Vietnam’s annual gross domestic product (GDP) is currently around US$500 billion, building two financial centers simultaneously would likely be inefficient, particularly in the face of fierce global competition in the financial sector. As a result, the Government has discussed and agreed on a new direction: establishing a single international financial center that operates across two locations—Ho Chi Minh City (HCMC) and Danang City. These cities will function under different strategic orientations but within a unified legal framework, as outlined in the resolution currently under discussion. This approach aims to […]
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