(On the Development of International Financial Centers in Ho Chi Minh City and Da Nang)

1. General information

• The National Assembly adopted Resolution No. 222/2025/QH15 on 27 June 2025, which takes effect from 1 September 2025.
• Objective: To establish International Financial Centers (IFCs) with special mechanisms and preferential policies aimed at connecting Vietnam’s financial markets with the global financial system.

2. Development Objectives

• Develop IFCs in line with international standards, leveraging the strengths of Ho Chi Minh City and Da Nang, with the vision of becoming leading regional financial hubs.

• Promote sustainable finance and mobilize resources for energy transition and green transformation.

• Operate under global standards, link with major international financial centers, integrate domestic and international exchanges, and foster capital flows and high-tech financial services.

• Attract high-quality human resources from both domestic and international markets; create a favorable environment for foreign professionals and experts.
• Ensure financial safety, transparency, and balance of interests among the State, citizens, and investors.

3. Scope and Applicable Entities

• The Resolution provides regulations on the establishment, organization, operation, supervision, and special mechanisms and policies applicable to the International Financial Centers (IFCs).
• Applicable entities include members of the IFCs (such as financial institutions, fintech companies, financial service providers, and market infrastructure organizations), as well as investors and relevant regulatory authorities.

4. Outstanding mechanisms and policies

Area	Key Provisions
Applicable Law	– Vietnamese laws apply unless otherwise specified in this Resolution. – For transactions involving foreign parties, the application of foreign law may be agreed upon, provided it does not contradict the fundamental principles of Vietnamese law.
Language of Transactions	– The official language used in transactions and procedures is English, or English accompanied by a Vietnamese version.
Rights of Members and Foreign Investors	– Members are allowed to establish holding companies, raise capital from abroad without licensing procedures, freely conduct investment and business activities as prescribed, and apply international accounting standards (IAS/IFRS) instead of Vietnamese standards. – Foreign investors may own shares or capital contributions and establish economic organizations within the IFC without undergoing regular investment registration procedures. – Cross-border capital raising and movement are facilitated, with reporting replacing prior approval in many cases.
Tax Policies	– Corporate Income Tax: + Priority sectors: 10% tax rate for 30 years; up to 4 years’ exemption; 50% reduction for the following 9 years. + Other sectors: 15% tax rate for 15 years; up to 2 years’ exemption; 50% reduction for the following 4 years. – Personal Income Tax: Exemption until 2030 for experts, managers, scientists (both Vietnamese and foreign), and individuals transferring capital.
Entry – Residence – Employment	– Visas/residence cards of up to 10 years for key experts, managers, and investors in IFCs; a “one-stop” mechanism among ministries to streamline immigration procedures at HCMC and Da Nang international airports. – Foreigners are exempted from work permits if they meet professional qualification criteria.
Land and Construction	– Projects in priority sectors or of large scale may be allocated or leased land for up to 70 years; other projects for up to 50 years, with possible extensions.
Exchanges and Trading Platforms	– IFCs are authorized to establish trading exchanges and digital platforms in sectors such as commodities, derivatives, carbon credits, green financial products, art, precious metals, fintech, and other emerging areas as development demands. – These exchanges operate under market principles, ensuring transparency, compliance with international standards, and eligibility for preferential treatment and support under the Resolution.

5. Significance and Impact

• The Resolution marks a major milestone in enhancing Vietnam’s attractiveness to international financial investment, fostering the growth of capital markets, fintech, financial technology, insurance, and cross-border investment within the country.

• It is expected to attract global capital, experts, and advanced financial technologies, while upgrading the legal and governance frameworks to align with international standards.

• As Ho Chi Minh City and Da Nang are designated as the locations for the International Financial Centers, the Resolution will have a significant impact on urban planning, economic and financial development, infrastructure, and high-quality human resources.

• It opens up new opportunities for financial institutions, fintech enterprises, and innovative startups, as well as for foreign professionals, who will benefit from simplified and preferential administrative procedures when working and residing in Vietnam.