Vietnam Establishes International Financial Centres Amid Trade Pressures

HANOI: On June 27, 2025, Vietnam's National Assembly ratified a groundbreaking initiative to create international financial centres in Ho Chi Minh City and Da Nang. This strategic move aims to enhance the nation’s attractiveness to foreign investment and bolster its position in global finance amidst increasing economic uncertainties and looming trade pressures from the United States.

The financial centres, as outlined by the Vietnamese government, will operate under a unified management structure. Ho Chi Minh City will focus on capital, banking, and currency markets, while Da Nang is set to specialize in sustainable and green finance, leveraging its advantageous location near important economic corridors. Finance Minister Nguyen Van Thang characterized the policies as “innovative and competitive,” emphasizing their adherence to international financial standards.

A significant feature of these centres will be the ability for their members to secure international financing and transact in foreign currencies. This is expected to attract a diverse array of international businesses and investors seeking to capitalize on Vietnam’s rapidly growing market.

According to a report from the Ministry of Planning and Investment, Vietnam's foreign direct investment (FDI) inflows rose by 7.9% to USD 8.9 billion in the first five months of 2025, while pledges surged by 51.1% to USD 18.4 billion. These statistics underscore the increasing interest in Vietnam as a viable investment destination, despite recent trade tensions with the U.S.

The U.S. has threatened to impose tariffs of up to 46% on Vietnamese exports unless trade concessions are made, an action that could significantly impact Vietnam's export-driven economy. Prime Minister Pham Minh Chinh expressed optimism about reaching a trade agreement with the U.S. within the next two weeks, highlighting the importance of resolving these tensions to maintain economic momentum.

The financial centres will implement international accounting and financial standards, including rigorous capital adequacy and liquidity ratios applicable to both domestic and foreign banks. This regulatory framework aims to enhance the transparency and reliability of Vietnam’s financial landscape, making it more attractive to global investors.

Vietnam has positioned itself as a critical manufacturing hub for major global firms, including Samsung Electronics, Foxconn, Intel, Nike, and Adidas. The establishment of international financial centres is expected to further solidify Vietnam’s role in the global supply chain, particularly as companies look for alternatives to China amid ongoing geopolitical tensions.

In conclusion, the establishment of these international financial centres marks a significant step for Vietnam in strengthening its financial infrastructure and attracting foreign investment. However, the looming threat of U.S. tariffs poses a critical challenge that could impact the success of this initiative. The outcome of impending trade negotiations with the U.S. will be pivotal in determining the future trajectory of Vietnam's economic strategy and its aspirations on the global financial stage.