Ho Chi Minh City pushes for global finance hub as government urges caution

HO CHI MINH CITY — Ho Chi Minh City is moving forward with the establishment of the Vietnam International Financial Center (VIFC), opening administrative headquarters and completing its first round of recruitment.

During a meeting chaired by Deputy Prime Minister Nguyen Hoa Binh, officials confirmed the VIFC has opened offices in District 1 and District 3. The center has also filled its initial 52 permanent staff positions.

The development plan for 2026-2030 focuses on four strategic pillars: aviation finance, digital finance, maritime finance, and international interbank systems.

Investment promotion is already underway. To date, the center has engaged with more than 20 major partners and issued invitations to over 50 potential investors.

However, representatives from the Ministry of Finance cautioned that the current proposal leans too heavily on technological solutions rather than institutional frameworks. The ministry also urged officials to remain cautious regarding the development of payment systems.

Deputy Prime Minister Binh praised the efforts of both Ho Chi Minh City and Da Nang, stating that the current trajectory is correct. He directed officials to continue researching licensing and payment procedures while ensuring that digital infrastructure meets international standards.

Binh also emphasized that any pilot programs must be implemented with caution, carefully managing both their scale and duration.

The direct oversight of recent high-level meetings by Vietnam’s Deputy Prime Minister signals a renewed political mandate from Hanoi to revitalize the long-dormant ambition of transforming Ho Chi Minh City into an international financial center. However, the proceedings also exposed persistent friction and divergent strategic priorities between municipal authorities and central ministries.

The most critical friction point emerged from the Ministry of Finance, which cautioned that the current proposal leans too heavily on "technological solutions" at the expense of "institutional foundations." This critique strikes at the heart of the project’s viability: a top-tier financial hub requires more than just modern infrastructure and fintech applications. It demands a robust, transparent, and globally competitive legal architecture. Fundamental prerequisites—such as the easing of capital controls, greater exchange rate flexibility, and an independent judicial framework—remain areas where Vietnam faces a significant regulatory deficit.

The Deputy Prime Minister’s directive to pursue a "cautious pilot" implementation reflects the Vietnamese government’s characteristic policy of incrementalism. While this approach is designed to mitigate systemic risk, it may inadvertently stifle momentum and create a climate of uncertainty for international institutional investors who prioritize regulatory predictability. In a high-stakes race against established hubs like Singapore and other emerging regional rivals, this inherent caution could ultimately serve as a self-imposed barrier to the city’s global aspirations.

This project is primarily designed for institutional investors and major financial corporations, meaning it will have no immediate or direct impact on the small businesses that anchor our community—from the phở restaurants and nail salons of Little Saigon to the remittance services families rely on. It also remains separate from immigration and visa matters, such as F2B, H-1B, TPS, or EB-5 categories. In the long run, however, a successful center could pave the way for new investment pipelines, offering Vietnamese-Americans with significant capital more sophisticated avenues to engage with the Vietnamese market.