A view of Thủ Thiêm New Urban Area in Thủ Đức City seen from downtown District 1. HCM City will develop a 9.2-ha site within the area into an International Financial Centre. — VNA/VNS Photo

HCM CITY — HCM City, Việt Nam’s largest economic hub, is set to develop a 9.2-ha site within the Thủ Thiêm urban area in Thủ Đức City into an International Financial Centre (IFC).

According to the Department of Science and Technology, the city is executing a plan to enhance its telecommunications and digital infrastructure to support this ambitious financial endeavour.

The proposed IFC will comprise 11 plots of land, covering a total area of 9.2ha in the Thủ Thiêm New Urban Area.

This area is currently undeveloped and is designated for technical infrastructure, including roads, electricity, water supply, telecommunications, and lighting; however, it is absent of buildings and residents.

The Thủ Thiêm New Urban Area has been a component of the city’s vision since 1996, encompassing 930ha, comprising 770ha allocated for the urban area and 160ha for resettlement. It is located on the eastern bank of the Saigon River, directly opposite downtown District 1.

The projected population for this vibrant urban area is anticipated to exceed 200,000 residents, which includes provisions for the resettlement of 45,000 individuals.

The department will collaborate closely with telecommunications providers and relevant stakeholders to establish a robust telecommunications and digital infrastructure.

This initiative aims to ensure comprehensive coverage of 5G mobile networks and the installation of high-speed fibre optic cables throughout the area, facilitating seamless communication and development as the financial centre progresses.

Nguyễn Văn Được, chairman of the municipal People’s Committee, said the city is prepared to assume the role of an IFC.

“HCM City, as a major economic hub, achieved a gross regional domestic product (GRDP) of over US$73.8 billion in 2024, representing 15.5 per cent of the national GDP,” he said.

He also noted that the city’s financial ecosystem constitutes over 50 per cent of Việt Nam’s fintech start-ups.

The IFC in HCM City is projected to be completed within five years.

The city recently established a steering committee for development of the IFC, which comprises 29 members and is chaired by Party Secretary Nguyễn Văn Nên.

The concept of establishing an IFC in the city has been under consideration for several years.

The Ministry of Planning and Investment has recently unveiled a draft proposal aimed at developing HCM City into an IFC.

The draft proposal envisions a dynamic financial hub that will incorporate a money market, banking systems, a capital market, and derivatives trading.

A view of downtown HCM City. The city has been proposed to house Việt Nam’s first international financial centre. — VNA/VNS Photo

IFC development in Việt Nam

In addition to HCM City, the government is also planning to establish an IFC in Đà Nẵng in central Việt Nam.

During a recent meeting, Deputy Prime Minister Nguyễn Hòa Bình said these two major urban centres are uniquely positioned to realise this vision.

The establishment of IFCs in the two cities represents a strategic initiative designed to catalyse Việt Nam’s rapid and sustainable economic growth.

He noted the important role that these centres will play in accelerating the nation’s economic advancement.

“Việt Nam currently possesses favourable conditions for the establishment of IFCs in these two dynamic cities, thanks to a stable political environment, a secure society, and a diligent labour force,” he said.

Within these designated geographical zones, special mechanisms and policies will be implemented to attract financial institutions, including banks, investment funds, and financial service companies.

Trading platforms for securities, currencies, and commodities will be established at the centres, with a particular emphasis on developing emerging financial sectors such as fintech in accordance with international standards.

The successful establishment of these centres will be instrumental in connecting Việt Nam to global financial markets while attracting foreign financial institutions, creating new investment opportunities and optimising existing resources.

Moreover, these centres will provide high-quality financial services to meet the needs of both domestic and international enterprises.

To effectively develop an IFC, experts recommended Việt Nam adopt successful international practices, particularly in emerging sectors such as fintech.

However, they cautioned that the implementation must be meticulously planned and controlled, divided into distinct phases.

Consideration of the unique potential and competitive advantages of the two cities must also be included, they noted.

While the concept of an IFC is common in other countries around the world, it remains new in Việt Nam. — VNS