Vietnam is entering a significant phase of financial reform with the development of an International Financial Center (IFC) – the country’s first international financial hub – located in both Ho Chi Minh City and Da Nang.
The initiative is part of a broader national strategy to position Vietnam as a regional financial center by 2035 and achieve global financial prominence by 2045.
Within this framework, Da Nang is envisioned as an innovation-driven financial hub, focusing on fintech, green finance, digital assets, and emerging financial services. The city is expected to complement Ho Chi Minh City, which will remain the country’s core center for banking, capital markets, and traditional asset management activities.
A Special Legal Framework for the International Financial Center
On June 27, 2025, Vietnam’s National Assembly passed Resolution 222/2025/QH15, officially approving the establishment of an International Financial Center in Ho Chi Minh City and Da Nang. The resolution took effect on September 1, 2025.
Under this framework, the IFC operates under a “one center – two locations” model, meaning a unified financial center with two operating hubs. Regulations, governance standards, and operational procedures will be applied consistently across both cities.
To support implementation, the Vietnamese government also issued Decree 323/2025/NĐ-CP, which outlines the governance structure, licensing procedures, supervision mechanisms, and operational framework for the IFC.
Da Nang: A Testing Ground for New Financial Models
In January 2026, Vietnam officially launched the International Financial Center in Da Nang, marking an important milestone in the country’s financial integration strategy.
According to the government’s vision, the Da Nang IFC will function as:
- A fintech and financial innovation hub
- A regulatory sandbox for testing new financial models
- A center for digital assets, digital payments, and specialized trading platforms
In addition, the center is expected to support the development of several emerging financial services, including:
- Supply chain finance
- Third-party financial services
- Non-deposit lending institutions
These activities are designed to complement and expand Vietnam’s traditional financial ecosystem, enabling more flexible and innovative financial products.
Key Incentives for Investors at the Da Nang IFC
To ensure the International Financial Center can compete with established financial hubs in the region, the Vietnamese government has designed a set of special incentive mechanisms for financial institutions, investment funds, and fintech companies operating in Da Nang.
1. Personal Income Tax and Investment Income Incentives
One of the most notable policies is the exemption of Personal Income Tax (PIT) for:
- foreign experts
- scientists
- senior executives working within the IFC
This incentive will remain in effect until 2030, aiming to attract international financial talent to Vietnam.
Additionally:
- Income from the transfer of shares or capital contributions within the IFC will also be exempt from personal income tax during the same period.
This policy significantly enhances the attractiveness of the IFC for investment funds and venture capital firms investing in companies operating within the financial center.
2. Relaxed Foreign Exchange Regulations
Organizations operating within the IFC will benefit from more flexible foreign exchange policies compared to ordinary businesses in Vietnam, including:
- the ability to open accounts in foreign currencies
- conducting direct international financial transactions
- easier capital repatriation and profit transfers abroad
These measures are intended to allow the IFC to operate closer to the standards of global financial centers such as Singapore or Dubai.
3. Regulatory Sandbox for Fintech Innovation
A key innovation of the Da Nang IFC is the Regulatory Sandbox, a framework that allows companies to test new financial models within a controlled regulatory environment.
Areas eligible for sandbox experimentation include:
- fintech services
- blockchain and digital assets
- electronic payments
- digital asset trading platforms
- AI-driven financial services
The sandbox allows companies to launch and test products before full regulatory frameworks are finalized, accelerating innovation within the financial sector.
4. International Operating Language
Within the IFC:
- English can be used as an official language for transactions and contracts
- legal documents may be prepared in English
- arbitration and dispute resolution mechanisms will follow international standards
This approach helps reduce legal barriers and improve accessibility for international investors.
5. Policies to Attract Global Talent
The Vietnamese government also plans to introduce supportive policies to attract high-quality international talent, including:
- simplified visa and work permit procedures
- dedicated policies to attract global financial experts
- development of high-end urban areas and services for international professionals
These measures aim to position Da Nang as an attractive place to live and work for global finance professionals.
Overall, the incentive framework at the Da Nang IFC is built on three main pillars:
- strong tax incentives
- flexible regulatory frameworks for financial innovation
- greater openness to global capital and international talent
These mechanisms are expected to help Da Nang rapidly develop into an emerging financial ecosystem in the Asia–Pacific region, strengthening Vietnam’s position in the global financial landscape.
Our team provides practical guidance on market entry, regulatory frameworks, and structuring opportunities within Vietnam’s evolving financial landscape. Contact us viat the form belowto explore how the Da Nang IFC can fit into your regional strategy.
