VIFC needs to build trust, ensure stable investment climate

Can Van Luc, a member of the National Financial and Monetary Policy Advisory Council and chief economist at BIDV, said that to meet its growth targets by 2030, Vietnam needs to maintain total investment at approximately 35-40% of its GDP, equivalent to US$280–300 billion annually.

Capital mobilisation currently relies heavily on banks. Bank credit accounts for approximately 51% of the total capital supplied to the economy, while capital raised through stocks and corporate bonds accounts for only about 13–14%.

VIFC will help tackle this issue, he said, adding that Vietnam should also focus more on green finance, international capital inflows, stock market upgrade and the improvement of its sovereign credit rating, as well as emerging markets such as digital assets and carbon credits.

Truong Minh Huy Vu, deputy chairman of HCM City People’s Committee, said: “To date, the legal framework for VIFC has been finalised, and the first 10 members, comprising various businesses and organisations, have been admitted.”

“The next two key areas of focus are investment funds and fund management operations. In November, VIFC will issue the procedures and regulations for the admission of investment funds.”

The city aims to learn from international experience and select methods that align with its specific development needs.

​Marc Knapper, former US Ambassador to Vietnam and member of the Advisory Board for VIFC, commended Vietnam’s remarkable progress in establishing the legal foundation to support the development of its IFC, including a specialised court that can hear cases in English and an international arbitration centre.

Leading institutions, including major banks in Vietnam, have also stepped forward as founding members, he said.

“Capital goes to where it is trusted, where rules are clear and stable, where disputes are resolved fairly, where money can move freely, and where talented people want to live and work.”

“Places like London, New York, Singapore, and Tokyo each have earned that trust over many years, and VIFC now has the chance to earn it faster because Vietnam has studied the lessons of its predecessors.”

In September, Vietnam's stock market was upgraded by FTSE Russell from frontier status to emerging market status, he said, adding that “the world is paying attention to what's happening here.”

VIFC is looking for institutions that are committed to building a dedicated presence to VIFC; adhere to Vietnam’s high quality standards in terms of finance, governance and reputation; and willing to become Vietnam’s partners in its development, including financing the energy, infrastructure, and innovation that the country needs.

Knapper added that global investors are looking for talented workforce, clear rules, and consistency in policy implementation, as well as connection to Vietnam’s markets, the region and other financial centres around the world.

The VIFC also needs to be able to link international capital to projects that Vietnam needs, through instruments such as green and infrastructure bonds, so that money raised there can be funneled into roads, power grids and important industries.

Oscar Njuguna, senior advisor at VIFC Da Nang, also stressed that trust must be guaranteed by institutions, emphasising the role of transparent governance and effective, binding dispute resolution mechanisms in building investor confidence.

Investors prioritise policy predictability and a stable legal environment over short-term tax incentives, he said.

VIFC-HCMC, ACCA partner to develop financial services ecosystem

VOV.VN - The International Financial Centre in Vietnam at Ho Chi Minh City (VIFC-HCMC) has signed a memorandum of understanding with the Association of Chartered Certified Accountants (ACCA) to develop the financial services ecosystem.