A view of downtown District 1. HCM City plans to extend its proposed International Financial Centre to include District 1 alongside the Thủ Thiêm urban area. — VNA/VNS Photo

HCM CITY — HCM City, Việt Nam’s largest economic hub, plans to extend its proposed International Financial Centre (IFC) to include District 1, expanding it from the Thủ Thiêm urban area in Thủ Đức City.

The municipal People’s Committee has submitted the proposal to the city Party Committee for consideration.

The IFC aims to occupy a section of District 1 within the Central Business District (CBD), which serves as the city’s core commercial and financial hub, but the city has not disclosed the size of the area.

District 1, covering 7.72 square kilometres and home to around 200,000 residents, hosts numerous government agencies, foreign consulates, and major corporations.

Previously, the city announced plans for the IFC in Thủ Thiêm urban area, comprising 11 plots of land over 9.2 hectares.

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

Established as part of the city’s vision since 1996, the Thủ Thiêm urban area is expected to accommodate over 200,000 residents, including 45,000 for resettlement.

The IFC initiative has been a government focus for several years and is expected to be completed within five years.

It will include various financial services, contributing significantly to the city’s growth and attracting foreign direct investment and international investors.

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

HCM City is a major economic hub with a GRDP of over $73.8 billion, accounting for 15.5 per cent of the national GDP.

The city is home to over 50 per cent of the country’s fintech start-ups.

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

The establishment of IFCs in the two major cities aims to drive rapid and sustainable economic growth in Việt Nam.

Việt Nam's stable political environment, secure society, and skilled workforce create ideal conditions for these centres.

Special policies will attract banks, investment funds, and financial service companies, while trading platforms for securities, currencies, and commodities will be developed, focusing on fintech.

These centres will connect Việt Nam to global financial markets, attract foreign institutions, and enhance investment opportunities.

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