Vietnam is entering a new phase in its global economic integration. The establishment of the Vietnam International Financial Centre (VIFC) is not merely the creation of a new financial hub, but a breakthrough in the institutional framework, aimed at connecting Vietnam’s domestic capabilities with international capital markets and financial institutions.
The notable aspect of VIFC lies not only in its incentive packages but also in the establishment of an international-standard financial ecosystem. This involves fundamental changes in accounting standards, transaction languages, governance mechanisms, and a regulatory sandbox for new business models.
The Two-City Model – Complementary Strengths
- Ho Chi Minh City: Serves as the hub for banking, capital markets, wealth management, and international financial services.
- Da Nang: Focuses on financial technology (FinTech), green finance, carbon credit markets, and innovation.
The two locations form a unified ecosystem, allowing businesses to select the optimal location and legal structure that aligns with their business models and long-term growth strategies.
5 Key Considerations for Businesses
1. Tax Incentives and the Global Minimum Tax (Pillar Two)
Tax policies at VIFC create a distinct competitive advantage with Corporate Income Tax (CIT) rates of 10% (applicable for up to 30 years) for priority sectors and 15% (for 15 years) for qualifying activities. However, for Multinational Corporations (MNCs) with a consolidated global revenue of EUR 750 million or more, the consideration goes beyond nominal incentives. A comprehensive impact assessment of the Global Minimum Tax is required to determine the actual tax benefits at the group level.
2. Personal Income Tax Leverage for Professionals and Investors
VIFC offers a 100% Personal Income Tax (PIT) exemption until December 31, 2030 across two critical income streams:
- Employment Income: Applicable to eligible experts and managers working at VIFC (accompanied by streamlined visa and residency procedures).
- Capital Transfer Income: Applicable to transfers of shares or capital contributions in VIFC Members (excluding public and listed equities).
This policy not only attracts top-tier talent but also provides strategic financial leverage for founders and investment funds to optimize divestment returns.
3. International Financial Reporting Standards (IFRS): An Advantage for Businesses Aligned with International Standards
For VIFC member businesses with the relevant needs and capabilities, choosing to adopt IFRS provides an opportunity to use a financial reporting language that is widely recognized by international investors and business partners. However, adopting IFRS involves more than changing accounting recognition and financial statement presentation. Businesses need to assess their data, systems, internal control processes, and people capabilities to ensure they can effectively operate and report under IFRS.
For businesses seeking to access international capital or participate more deeply in the VIFC financial ecosystem, IFRS should therefore be viewed as a strategic choice for enhancing financial transparency and governance, rather than simply an accounting requirement.
4. Cross-Border Capital Flows and Foreign Exchange Management
The ability to connect with international capital flows is one of VIFC’s most groundbreaking features, particularly with the mechanism allowing non-bank VIFC members to execute foreign borrowing without registering with the State Bank of Vietnam (SBV). This provides greater flexibility in corporate funding and cash-flow management. However, it also imposes stringent requirements on liquidity management, debt obligation control, profit repatriation planning, and exchange rate risk hedging right from the initial capital structure design.
5. Who Can Benefit Most?
- Multinational Corporations (MNCs) and Large Enterprises: Optimizing capital flow structures, centralized treasury management, and regional value chain operations.
- Financial Institutions and Investment Funds: Establishing presence, expanding networks, and developing specialized financial products.
- FinTech and Innovative Enterprises: Leveraging the regulatory sandbox mechanism in alignment with updates from Decree 94/2025/ND-CP and the Law on Digital Technology Industry to rapidly commercialize new solutions.
- Green Finance Enterprises: Accessing green funding channels and carbon credit trading markets.
- Professional Service Providers: International-standard audit, accounting, tax advisory, legal, valuation, and risk management firms.
KTC’s Perspective: Turning VIFC Opportunities into Sustainable Value
VIFC opens up a space for breakthrough development, but to translate incentives into sustainable value, businesses need a robust operating foundation built around transparency, sound governance, and international standards. These demands synchronized preparation across investment structuring – tax planning – foreign exchange and capital flows – IFRS implementation – internal controls right from the start.
KTC accompanies businesses throughout the entire process: from feasibility assessments and compliance reviews to IFRS implementation support and the establishment of comprehensive risk management models at VIFC.
For in-depth consulting, please contact:
- Ms. Thai Thi Van Anh
- Email: van.anh.thai@ktcvietnam.com
- Phone: (+84) 974 589 163
- Mr. Nguyen Trong Khiem
- Email: khiem.trong.nguyen@ktcvietnam.com
- Phone: (+84) 904 821 889
