Vietnam reaches 70% completion of legal framework for international financial centers: expert

The seminar, titled ‘Legal Framework for International Financial Centers – Foreign Experience for Ho Chi Minh City,’ was organized by Phap Luat Viet Nam (Vietnam Law) newspaper, the Ho Chi Minh City University of Law, and the Ho Chi Minh City Institute for Development Studies.

It examined lessons from global models and their applicability to Vietnam.

Richard D. McClellan, vice-chairman of the Advisory Council for Vietnam’s IFC in Da Nang, said the country has made strong progress, completing about 70 percent of the core framework, according to Phap Luat Thanh Pho Ho Chi Minh (Ho Chi Minh City Law) newspaper.

As part of this, a proposed governance model has been introduced, consisting of a management authority, a supervisory body, and a dispute resolution mechanism.

Inspired by the Dubai IFC, the model is designed to provide an independent and reliable legal environment.

Vietnam is also drafting policies to attract international investors, including guaranteed profit repatriation, free currency conversion, competitive tax regimes, use of the U.S. dollar in transactions, designation of English as an official working language, and recognition of international arbitration.

In addition, a regulatory sandbox for digital assets and fintech, among other initiatives, is being developed.

Drawing on experiences from Dubai, Singapore, and Hong Kong, McClellan stated that transparent legal systems and robust anti–money laundering and counter-terrorism financing rules are essential for the long-term competitiveness of IFCs.

He emphasized the need for a credible dispute resolution system — potentially involving foreign judges — as a prerequisite for trust.

He also recommended Ho Chi Minh City and Da Nang to quickly develop qualified human resources to meet IFC requirements, noting that successful financial centers demand both intellectual depth and innovation.

From France, Olivier Vigna, deputy managing director for advocacy and public affairs at Paris Europlace, said an IFC’s appeal depends largely on market size.

He urged Vietnam to adopt policies that attract long-term capital, expand private asset and equity fund management, and boost labor productivity.

He also stressed the need for top universities and a high-quality living environment — including housing and schools — to encourage investors and their families to settle in Vietnam.

Prof. Dr. Le Hong Hanh, chairman of the Vietnam International Arbitration Center, said the experience of Dubai, Astana (Kazakhstan), and Shanghai (China) shows that transparent, efficient legal frameworks are decisive for IFC success.

For Vietnam, this means clearly defining the role of IFCs within the national financial and judicial system, while avoiding overlaps across securities, land, tax, and other laws.

Stability and transparency, he warned, are essential to winning investor trust.

"Otherwise, even if the nest is prepared, the eagles will not come," Hanh said, referring figuratively to Vietnam's groundwork and big investors. 

He outlined four priorities for Vietnam’s IFC framework: an appropriate governance model, clear laws, integration with global finance, and a transparent, timely dispute resolution system.

He recommended drawing on the Cambridge model — built on transparency, freedom of contract, and effective dispute resolution — as a foundation for turning Ho Chi Minh City and Da Nang into global financial hubs.

On June 27, Vietnam’s legislative National Assembly passed Resolution 222/2025, effective September 1, providing the legal framework for the establishment, operation, management, supervision, and special policy regimes of both IFCs.

Building on this, the Ministry of Finance submitted a proposal in July to Prime Minister Pham Minh Chinh to formally establish the country’s first two IFCs by the end of 2025, which he subsequently approved.