HCMC – The National Assembly’s (NA) resolution on international financial centers will come into effect on September 1, marking a key legal milestone for the development of such centers in HCMC and Danang.
The Ministry of Finance and the HCMC People’s Committee today, August 2, jointly held a conference to announce the resolution, with Prime Minister Pham Minh Chinh presiding over the event.
This move is seen as a strategic step that will both drive the country’s economic growth and reinforce Vietnam’s emerging role on the global financial stage.
A series of incentive policies have been crafted to create an attractive and competitive business environment, aiming to draw financial firms, investment funds, fintech companies, and strategic investors from around the world.
Income earned by enterprises from new investment projects at the centers in prioritized industries will be subject to a corporate income tax rate of 10% for 30 years, with up to four years of corporate income tax exemption and a 50% tax reduction for the following nine years.
Regarding personal income tax, managers, experts, scientists, and professionals working at the centers are exempt from personal income tax until the end of 2030.
Individuals earning income from transferring shares, capital contributions, or membership rights in the center are also exempt from personal income tax until the end of 2030.
Under the foreign exchange policy, members are permitted to use foreign currencies in their activities, transactions, and services. Notably, businesses will have greater ease in transferring capital into and out of the center.
Notably, the resolution also sets out pilot financial policies for technology-driven financial services (FinTech) and innovation. Incentive policies for key sectors such as green finance, digital assets, FinTech, commodity markets, and derivatives are also decentralized, allowing regulatory authorities the power to issue relevant regulations.
Many incentive policies are also applied to attract international strategic investors, such as land leasing without auction or bidding, with land allocation or leasing granted for up to 70 years.
Additionally, the resolution outlines a series of other incentive policies related to investment in construction, technical infrastructure, and services to accelerate the establishment of the international financial centers.
