A view of Thủ Thiêm New Urban Area in HCM City, which will host the first phase of the city’s planned $7 billion international financial hub. — VNA/VNS Photo

HCM CITY — HCM City will begin construction of a long-planned international financial centre (IFC) in September, part of Việt Nam’s push to position itself as a regional financial hub alongside Singapore and Hong Kong.

The municipal government said it is accelerating procedures so work can start on the first phase of the project, which will anchor Việt Nam’s financial ambitions in both HCM City and Đà Nẵng.

The plan follows a resolution passed by the National Assembly in June with overwhelming support.

The IFC in HCM City will cover 783ha across downtown Bến Thành Ward and the Thủ Thiêm New Urban Area. A 9.2-ha “core zone” in Thủ Thiêm will be built first, housing financial regulators, supervisory bodies and specialised courts.

Total investment is estimated at VNĐ172 trillion (US$7 billion).

About VNĐ16 trillion will be spent in the first two to three years, including VNĐ2 trillion from the State budget to build offices for government agencies, with the rest expected from domestic and foreign strategic investors.

Under the plan, HCM City’s IFC will focus on banking, asset management, capital markets, fintech and derivatives trading. Đà Nẵng will specialise in green finance, digital financial services and controlled pilot projects in crypto-assets.

The Government aims for the HCM City centre to begin operations in 2025 and be completed within five years, in what officials describe as a "cornerstone of Việt Nam’s economic modernisation strategy".

Việt Nam has debated the creation of an international financial hub for more than a decade, but earlier efforts stalled due to unclear regulations and competition from established regional centres.

HCM City, which generates nearly a quarter of Việt Nam’s GDP, has long been seen as the most suitable location given its fast-growing middle class, expanding banking sector, and status as the country’s commercial capital.

HCM City already hosts the Hồ Chí Minh Stock Exchange (HOSE), the country’s largest equities market, but foreign participation remains limited by ownership caps and underdeveloped capital markets.

Officials hope that a dedicated financial centre with clearer rules, sandbox regimes for fintech, and incentives for foreign investors will help attract global banks, funds and insurers.

Analysts note that while the ambition is bold, Việt Nam will face stiff competition from Singapore and Hong Kong, both of which are deeply entrenched as Asia’s financial gateways.

Success will depend on whether the nation can deliver regulatory reforms, deepen its capital markets, and build trust with international investors, they add. — VNS