HCMC – Singapore-based UOB is studying the possibility of joining the Vietnam International Financial Center (VIFC), aiming to facilitate capital flows from Singapore and the broader ASEAN region into Vietnam.
To strengthen its market presence, the bank has also announced plans to build a new headquarters in HCMC, with construction expected to begin in July. The site is located within the area designated as the core zone of the future financial center.
UOB is currently the only Singaporean bank with a wholly owned banking subsidiary in Vietnam and the country’s second-largest foreign-owned bank, with charter capital of VND10 trillion (more than S$500 million).
Since 2020, its foreign direct investment (FDI) advisory unit has helped more than 400 international companies invest around S$9 billion in Vietnam.
Following the completion of the integration of Citi Vietnam’s retail banking business in July 2025, UOB has continued to expand its customer base. Bank executives have described Vietnam as a key market in its ASEAN strategy, citing the country’s economic dynamism and resilience, as well as growing opportunities in regional connectivity and cross-border trade.
UOB’s interest in joining the VIFC comes as Vietnam accelerates efforts to develop a legal framework for an international financial center that can serve as a gateway for medium- and long-term capital inflows. The interest shown by major financial institutions is seen as a positive signal of the project’s attractiveness.
However, channeling foreign capital into the VIFC remains challenging due to technical and regulatory hurdles, particularly stringent licensing requirements for establishment and operation.
According to representatives of the VIFC’s operating authority in HCMC, more than 10 globally recognized banks and financial institutions, including JPMorgan, Bank of America, Bank of China and MUFG, have expressed plans to become members. However, none has been able to officially join so far.
The main obstacle stems from Government Decree No. 329/2025/ND-CP. Under the regulation, foreign banks seeking licenses to operate at the VIFC must meet high credit-rating requirements, including a minimum rating of AA- from S&P Global Ratings or Fitch Ratings, or Aa3 from Moody’s, with a stable outlook.
The threshold is considered significantly higher than industry norms, leaving most interested foreign banks unable to qualify. As a result, institutions currently operating within the VIFC are predominantly domestic banks.
