HCM CITY — HCM City, Việt Nam’s largest economic hub, has unveiled an ambitious plan to seek a total of VNĐ172 trillion (US$7 billion) to develop an International Financial Centre (IFC) over the next five years.

The proposed IFC will be situated in downtown District 1 and part of the Thủ Thiêm New Urban Area, spanning a total of 783 hectares.

The overall investment for the IFC is expected to exceed VNĐ172 trillion. 

In the first phase, the city is seeking only VNĐ14 trillion in addition to VNĐ2 trillion sourced from the State revenue to build a core area spanning 9.2 hectares in the Thủ Thiêm New Urban Area. 

The core area located on the eastern bank of the Saigon River, directly across from downtown District 1 will host government offices, including the headquarters of management agencies, regulatory bodies, and others.

This area is currently undeveloped and designed for technical infrastructure, including roads, electricity, water supply, telecommunications, and lighting; however, it lacks any buildings or residents.

Thủ Thiêm has been part of the city’s planning since 1996, covering 930 hectares, with 770 hectares allocated for urban development and 160 hectares for resettlement. The vibrant urban area is expected to exceed 200,000 residents.

Nguyễn Văn Được, chairman of the municipal People’s Committee, said the city was well-prepared to assume the role of an IFC. 

“HCM City, as a major economic hub, achieved a gross regional domestic product (GRDP) of $73.8 billion in 2024, or 15.5 per cent of the national GDP,” he said. 

"Its financial ecosystem comprises over 50 per cent of Việt Nam’s fintech startups," he added. 

The city has recently established a steering committee for establishing the IFC, chaired by Party Secretary Nguyễn Văn Nên, consisting of 29 members.

The concept of establishing an IFC in the city has been under consideration for several years. 

A draft proposal for it has envisioned a dynamic financial hub that will include a money market, banking systems, a capital market, and derivatives trading, among others.

In addition to HCM City, the government also plans to establish an IFC in Đà Nẵng in central Việt Nam. 

Special mechanisms and policies are expected be implemented to attract financial institutions, including banks, investment funds, and financial service companies.

Trading platforms for securities, currencies, and commodities will be established at these centres, with a particular emphasis on developing emerging financial sectors such as fintech in accordance with international standards.

The successful establishment of these centres will be key to connecting Việt Nam to global financial markets while attracting foreign financial institutions, creating new investment opportunities, and optimising existing resources, experts say.

These centres will also provide high-quality financial services to meet the needs of both domestic and international enterprises.

To effectively develop an IFC, experts recommend Việt Nam adopt successful international practices, particularly in emerging sectors such as fintech. 

They have also cautioned implementation must be carefully planned and controlled, divided into distinct phases.

Consideration of the potential and competitive advantages of the two cities must also be taken into account, they note.

While the concept of an IFC is common in other countries, it remains quite new in Việt Nam. — VNS