Vietnam’s draft Decree on the establishment of international financial centers

The Ministry of Finance is drafting a Decree on the establishment of International Financial Centers (IFCs) to implement Resolution 222/2025/QH15 of the National Assembly. This draft aims to create a legal framework for the operation of IFCs in Ho Chi Minh City and Da Nang, while proposing special mechanisms and policies, including tax incentives and decentralization, to attract investment and develop the financial market. Below are the key points for a standard enterprise to register as a member of IFCs.

Objectives and Development Orientation

Ho Chi Minh City: Focus on attracting capital, technology, and human resources to develop specialized financial services, including capital markets, banking, Fintech, trading platforms, logistics, and supply chains, with connections both domestically and internationally.

Da Nang City: Focus on green finance, offshore finance, cross-border trade, experimentation with digital assets, and emerging technologies (AI, blockchain). Attract investment funds, startups, and global experts, while fostering a high-quality, safe, transparent, and vibrant living and working environment.

The list of prioritized sectors and corresponding incentive policies shall be defined by the People's Committees of Ho Chi Minh City and Da Nang.

Membership Registration 

Organizations and enterprises may register for membership in the IFCs if they meet the standards for financial capacity, reputation, and operate in sectors aligned with the center's development orientation. The draft currently proposes two options for defining these standards.
Option 1: Define standards in the Decree, ensuring:

• Entities are not subject to prohibitions on establishment and operation in Vietnam.
• Compliance with anti-money laundering and counter-terrorism financing regulations.
• Possession of reputable standing, stable financial status, and international credit ratings (BB or higher).
• Transparent and efficient business models, contributions to the host nation, ownership of advanced technology, and suitable development plans.
• High-quality leadership and workforce, commitment to supporting domestic enterprises, technology transfer, environmental protection, and workforce training in Vietnam.
• Detailed regulations for banks, credit institutions, securities, and insurance organizations in accordance with Resolution 222/2025/QH15.

Option 2: The People's Committees of Ho Chi Minh City and Da Nang will independently establish membership criteria aligned with their respective development strategies.

Membership Application Dossier

The membership registration application includes

• Enterprise Registration Certificate;
• Audited financial statements for the last two years by an independent auditing firm;
• Commitment to the implementation plan and areas of operation within the International Financial Center.

Members will be assigned a unique identification number, recorded in the Membership Registry of the IFCs. This identification number is equivalent in value to the enterprise registration number within the Business Registration Information System.

Rights of Members

• Establish holding companies to raise capital and manage investments (except for commercial banks).
• Raise capital from foreign entities and non-residents without prior approval, only requiring reporting as per regulations.
• Member debts with foreign entities or individuals are excluded from the national external debt calculation for monitoring and management of foreign debt safety indicators (Members are not required to register foreign loans).
• Freely conduct investment and business activities with foreign entities, non-residents, or other members as permitted under their license.
• Choose to apply International Accounting Standards (IAS/IFRS) issued by the International Accounting Standards Board or Generally Accepted Accounting Principles (GAAP) of nations such as Australia, Brazil, Canada, EU member states, Hong Kong (China), Japan, Mexico, New Zealand, China, India, South Korea, Russia, Singapore, Switzerland, the UK, the USA, and Vietnam. Entities opting for accounting standards other than Vietnamese standards are not required to prepare financial statements under Vietnamese standards.
• For enterprises operating in the financial and banking sectors, when newly licensed at the International Financial Center, their establishment and operation license also serves as their Membership Registration Certificate.

With special mechanisms, incentive policies, and clear development orientations for Ho Chi Minh City and Da Nang, the draft not only establishes a solid legal framework for IFC operations but also creates favorable conditions to attract investment, technology, and high-quality human resources from both domestic and international sources. Becoming a member of the IFCs promises significant advantages in terms of tax incentives and legal regulations for investors. Currently, the draft is being finalized, and we will continue to monitor and provide updates on the latest developments.