IFC backs Ho Chi Minh City financial hub, eyes $3bn investment in Vietnam

The commitment was made by IFC country director for Vietnam, Laos, and Cambodia Thomas James Jacobs at a meeting with Nguyen Cong Vinh, deputy chairman of the Ho Chi Minh City administration, on Tuesday as part of his business trip to the city.

Jacobs said the visit was aimed at expanding cooperation between IFC and Ho Chi Minh City while reviewing progress on ongoing investment projects.

Vinh welcomed the continued partnership, highlighting IFC’s contributions to finance, private investment, green finance, and sustainable infrastructure.

He said the organization has helped advance the city’s digital finance ecosystem while supporting small- and medium-sized enterprises, women-led businesses, and vulnerable groups.

The deputy chairman called on IFC to serve as a strategic partner in developing the VIFC-HCMC, which officially debuted on February 11, particularly in providing policy advice and sharing international experience in capital markets, green finance, fintech, and digital infrastructure.

Vinh also urged IFC to help connect the city with global investors, major funds, and international financial institutions to strengthen its financial ecosystem.

He noted that Ho Chi Minh City aims to become a regional financial center by 2035 and a global financial hub by 2045.

Jacobs expressed support for the proposals, affirming IFC’s readiness to assist local authorities in developing the center by improving regulatory frameworks, strengthening governance capacity, and expanding financial products.

He added that the organization is working with the Ho Chi Minh City Stock Exchange to upgrade data systems, enhance competitiveness, and support legal and governance frameworks.

Beyond finance, the city is seeking deeper cooperation with IFC in innovation and high-tech sectors, including semiconductors, artificial intelligence and biotechnology, as well as in developing smart urban networks across the southeastern region.

In infrastructure, Vinh proposed IFC support in mobilizing capital for major transport projects, including seven metro lines spanning 547 kilometers and key rail links with neighboring localities.

He also called for expanded cooperation in green finance and the sustainable marine economy, including offshore wind power, the Can Gio international transshipment port, the Cai Mep Ha logistics hub, and free trade zone models built on integrated digital port systems.

Agreeing to these initiatives, Jacobs reaffirmed IFC’s long-term commitment to supporting Vietnam’s development, with Ho Chi Minh City being a key focus.

IFC plans to invest about $3 billion in Vietnam in the coming time and mobilize additional capital from international partners to scale up its investments, he said.

Its investments prioritize infrastructure sectors such as energy, transport, logistics, water supply and wastewater treatment, waste management, the circular economy, and digital infrastructure, in line with the city’s development goals.

In manufacturing, Jacobs noted that Vietnam is seen as a key destination amid global supply chain shifts, with strong potential in high-tech industries, semiconductors, and industrial parks.

In the banking and financial sector, the organization has partnered with Vietnamese lenders through medium- and long-term financing, governance advisory services, global trade finance, and the development of green and sustainable financial products.

At the national level, it has mobilized more than $1 billion annually for long-term investment projects in Vietnam over the past eight consecutive years.

It also committed about $310 million to climate finance projects in the country in fiscal year 2024, marking its highest level of such investment in the East Asia and Pacific region.