These signals are prompting the city in particular, and Vietnam in general, to accelerate the completion of infrastructure and policies to put the IFC into operation soon.
A new “base” for global corporations
Unlike existing IFCs in the region such as Hong Kong (China) or Singapore, which were built upon traditional commercial hubs, HCM City is emerging amid a restructuring of global supply chains. This creates opportunities for Vietnam to become an important link in the new value chain.
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A corner of Ho Chi Minh City |
At a working session with municipal leaders on the sidelines of the forum, Yang Peng, CEO of the Singapore-based digital payments & fintech group Ant International, said that after eight years of observing Vietnam’s financial market, he has seen significant progress, especially in digital payments, reflected in the development of platforms such as NAPAS and various electronic payment ecosystems.
Given Ho Chi Minh City’s advantages, Ant International plans to make the city a strategic market in its global expansion and accompany the economic hub in operating and developing the Vietnam IFC, he said.
Multiple international businesses have also expressed interest in investing in the IFC.
In a paper submitted to the forum, Nguyen Lam Thanh, General Director of TikTok Vietnam, said that after studying the IFC model, the company identified three strategic areas suitable for establishing operations in Vietnam, namely digital commerce, digital payment and digital logistics.
TikTok therefore plans to apply for licenses to establish three companies within the IFC in Ho Chi Minh City to operate in these fields. The company hopes that the Government and municipal leaders will facilitate licensing so these firms can become operational next year.
Noah Perlman, Chief Compliance Officer of Binance, the world’s largest digital asset exchange which recently signed an MoU with the municipal Department of Finance to support the IFC, assessed that the city is rapidly becoming a major destination for digital finance and innovation.
Binance sees numerous opportunities for cooperation, including supporting the capacity building, piloting blockchain solutions to enhance transparency and efficiency in public services, and fostering innovation through startups and small enterprises. As Vietnam builds a national legal framework for digital assets, Binance stands ready to share international experience to help protect users and promote sustainable growth, he noted.
Major incentives for investors
Associate Professor, Dr. Nguyen Huu Huan, a member of the advisory group for the IFC establishment, told the Vietnam News Agency that investors and international experts working at the IFC could enjoy corporate income tax and personal income tax exemptions, along with long-term visas of up to 10 years.
Notably, children of foreign experts may receive tuition support, while top-tier experts themselves could be considered for housing arrangements during their tenure at the IFC. These preferential policies are seen as key incentives in attracting strategic investors to Vietnam.
In addition, the legal framework for the IFC is being designed as a “special legal zone” based on international standards and “Common Law” practices, similar to the models in the U.K. and other leading global financial centers. This approach is expected to substantially ease existing gaps between Vietnam and global markets while creating a more transparent and familiar environment for international financial institutions.
Chairman of the Ho Chi Minh City People’s Committee Nguyen Van Duoc said the city is urgently finalizing conditions for the IFC to operate, with the goal of launching it in December this year. The local authorities are committed to building a favorable, transparent, and attractive environment for investors.
Speaking at the forum’s November 25 CEO 500 - TEA CONNECT, a program connecting Vietnamese and Ho Chi Minh City leaders with executives of large local and foreign enterprises, Prime Minister Pham Minh Chinh stated that Vietnam remains a developing country with an economy undergoing transition and still modest in scale, meaning its capital needs are substantial. Therefore, capital market development and the IFC establishment are considered crucial tasks.
He affirmed that preparations for the IFC are progressing smoothly.
Source: VNA