THE VIET NAM INTERNATIONAL FINANCIAL CENTER IN HO CHI MINH CITY (VIFC-HCMC) IN THE SPECIAL URBAN LAW: THE NEED FOR A COMMENSURATE INSTITUTIONAL STATUS

In his feedback on the Draft Special Urban Law, Dr. Nguyen Thanh Long emphasized a highly noteworthy point: this current draft is not merely a continuation of previous pilot mechanisms, but a shift toward establishing a long-term, legislated legal framework for Ho Chi Minh City. This milestone marks a crucial transition, as a special urban area requires a distinct institutional space - one robust enough to unlock resources and generate new growth drivers.

According to Dr. Long, the Draft Law introduces several commendable breakthroughs: expanding decentralization and the delegation of power; establishing pilot policy mechanisms and a regulatory sandbox; creating greater fiscal and budgetary flexibility; and opening up new development frontiers such as the maritime economy, digital economy, green economy, digital assets, underground space, as well as low- and high-altitude spaces. These provisions reflect that the Special Urban Law aligns seamlessly with the spirit of "a breakthrough of breakthroughs" set forth by the Central Government for Ho Chi Minh City.

Building upon this foundation, the Viet Nam International Financial Center in Ho Chi Minh City (VIFC-HCMC) has provided the following perspectives:

From the viewpoint of Dr. Truong Minh Huy Vu, Chairman of the Executive Agency of the Viet Nam International Financial Center in Ho Chi Minh City (VIFC-HCMC), VIFC-HCMC is not simply an economic functional zone offering tax incentives. Rather, it is a specialized jurisdictional space where institutions, products, services, governance standards, and operational mechanisms are forged in accordance with international practices. This is the fundamental distinction between the VIFC and a traditional free trade zone or logistics park.

For the 2026–2030 period, Vietnam's demand for social investment capital is immense, yet the state budget can only accommodate a fraction of it. The credit-to-GDP ratio is already high, public investment is constrained by debt ceilings and disbursement capacities, and traditional FDI remains heavily concentrated in manufacturing. The most significant gap at present is the lack of long-term capital for infrastructure, green finance, digital transformation, high technology, cross-border M&A, and asset management. This is precisely the void that VIFC-HCMC is positioned to fill.

However, the role of the VIFC extends far beyond capital mobilization. Most importantly, the VIFC can serve as the primary engine for the modernization of the national financial system. By operating under global standards such as IFRS, Basel, and IOSCO, the VIFC will create a catalytic pressure to elevate standards across domestic banking, securities, insurance, corporate governance, and capital markets. Concurrently, it provides a testing ground for fintech, digital assets, green finance, climate finance, maritime and aviation finance, and emerging financial products tethered to the real economy.

Therefore, Dr. Vu suggested that the Draft Law should consider dedicating a distinct section to VIFC-HCMC, comprising two to three specific articles. This would bridge the current legal void, enabling the rapid development of an institutional system, products, and services that reflect both international best practices and the specific characteristics of the City. It would fundamentally resolve the mismatch between the existing legal framework and the actual status of the VIFC. This approach also strictly complies with the Central Government's directive regarding the Special Urban Law—to establish a "stable institutional framework, coupled with a long-term vision, robust and groundbreaking"—rather than descending into micro-administrative details, thereby securing the correct institutional standing for a component of national significance.

According to Resolution 222 and Decree 323/2025, unlike the Viet Nam International Financial Center in Da Nang City (VIFC-DN), VIFC-HCMC is strategically oriented to develop into an international financial center with a comprehensive and highly diversified ecosystem, built upon four core product pillars:

• International Capital Markets (The "Backbone" of the System): International corporate and municipal bonds, IPOs, dual listings, and an international securities exchange.
• Financial Services for International Trade: Trade finance, cross-border payments, commodity credit, insurance, and risk hedging (tightly linked to HCMC's role in seaports, logistics, and import-export, which accounts for roughly one-third of the national turnover).
• Digital Banking and Fintech.
• New Financial Products for Niche Markets: Maritime and aviation finance, green finance, asset management, and specialized finance.

The core defining characteristic of these pillars is their direct connection to the real economy: infrastructure, logistics, manufacturing, digital transformation, and green growth. Given that Ho Chi Minh City contributes 23–25% to the national GDP, a generic legal framework is insufficient to encompass all the unique specificities of VIFC-HCMC.

VIFC-HCMC can only evolve into a true international financial center if it is deeply integrated with the City's real economy - its seaports, airports, logistics hubs, high-tech parks, listed enterprises, urban infrastructure, green finance initiatives, and digital transformation efforts.

Ultimately, the Special Urban Law should not merely grant additional administrative powers to Ho Chi Minh City; it must forge an institutional foundation robust enough to empower the City to translate its advantages into capital flows, its expectations into active markets, and VIFC-HCMC into a powerful new growth engine for Vietnam.