Following the request of Deputy Prime Minister Nguyen Van Thang, the Vietnam International Financial Center in HCMC (VIFC-HCMC) is urgently preparing to launch specific products and transactions starting in November, with investment funds prioritized for implementation.
Four main product groups positioned
Assoc. Prof. Nguyen Huu Huan, Vice Chairman of the Executive Board of VIFC-HCMC, stated that the center is actively collaborating with partners, focusing on four key product groups including investment funds, international bonds, financial technology (fintech), and commodity exchanges, with investment funds being a prioritized product.
Investment funds will register their membership with VIFC-HCMC and use this legal entity to invest in key projects. It is expected that the first fund-related deals will be implemented in November.
Currently, potential investment funds are concentrated in Northeast Asia, Europe, and the US. Among these, Northeast Asia mainly comprises South Korea, China, Japan, and Taiwan (China)—long-standing partners pouring investment capital into the Vietnamese market. In Southeast Asia, Singaporean investors show great interest in VIFC. Following investment funds, international bonds represent the second prioritized product.
According to Mr. Dinh Duc Quang, Head of Global Markets at UOB Vietnam, securing the first transaction in November will act as a "chime" signaling to investors the enthusiasm and readiness of the Government to embrace new models and facilitate transactions.
With strong determination, Vietnam can start with a simple deal, similar to those occurring daily in financial centers like Hong Kong and Singapore. Many domestic and foreign financial institutions are currently interested and eager to join VIFC, making the execution of an initial transaction entirely feasible.
A more critical issue is how to maintain momentum after the first deal to continuously attract and lead participating investors.
Building trust through international standards
According to Ms. Helen Brand, Chief Executive of the Association of Chartered Certified Accountants (ACCA) - the global body for professional accountants - the key element a center can use to attract capital is not tax incentives or skyscrapers. Rather, it is the ability of an investor in London, New York, China, or Singapore to read and trust financial statements and sustainability information prepared in HCMC or Da Nang City with the same level of confidence as reports prepared in their own country. This reflects the impact of international standards, including International Financial Reporting Standards (IFRS).
"International standards help foreign investors save significant resources and effort, eliminating the need to spend time navigating unique local conditions. I highly appreciate that the Ministry of Finance has allowed entities within VIFC to voluntarily apply IFRS starting in 2027", emphasized Ms. Helen Brand.
Helen Brand, Chief Executive of the Association of Chartered Certified Accountants (ACCA), recommended that amid growing volatility in the global economy and increasingly intense competition for capital, attractive investment opportunities alone may no longer be sufficient, as capital flows are demanding greater clarity and certainty. In reality, the ability to convince investors is built on three factors: trust, institutions, and talent.
Luong Anh Tuyet, Markets and Assurance Partner Leader at PwC Vietnam, noted that IFRS makes a major difference due to its system of highly transparent and easy-to-understand financial reports that accurately reflect the reality of the economy. VIFC can serve as a "center of excellence" for IFRS, spreading expertise throughout the economy and helping attract investment capital not only for VIFC but for the entire country.
In addition to a "common financial language," VIFC needs to meet various other requirements from international investors. In particular, information regarding VIFC and legal regulations must be clearly structured, concise, easy to look up, and readily available in English on the internet.
The goal is that when foreign businesses are interested in VIFC, a quick Google search will reveal a clear registration and participation roadmap, enabling them to make prompt investment decisions.
