VIFC rewires nation's financial ecosystem

Plans for its international financial centre in Ho Chi Minh City is expected to lay the foundations for a new financial architecture, where competitiveness is defined by how effectively capital is attracted, allocated, and recycled.

- By Ha Truc

After more than two decades of growth driven largely by bank credit and foreign direct investment, Vietnam’s capital market is entering a pivotal phase.

The prospect of a sovereign credit rating upgrade to investment grade, alongside the roadmap for upgrading the stock market and plans to establish the Vietnam International Financial Centre (VIFC), is simultaneously creating a structural boost for the financial system.

“When trust is firmly established, capital will no longer merely come and go, but will stay and accompany the economy over the long term. Today, we are gradually building that ecosystem through digitalised procedures, regulatory sandboxes for financial innovation, and a foreign exchange environment that is open yet secure,” stressed Nguyen Thi Phuong Thao, chairwoman of Sovico Group.

Economist Assoc. Prof. Dr Tran Hoang Ngan noted that the early establishment of the VIFC in Ho Chi Minh City would provide the city with an additional platform to mobilise resources, particularly foreign capital. Ngan expects that one of the core products should be a foreign currency bond market.

“With such a market, Vietnam can mobilise foreign currency resources for development investment. In addition, municipal bonds, green bonds, tokenised assets, and digital currencies are products that should be prioritised, as Vietnamese investors are showing strong interest in this asset class,” he said.

On February 11, the VIFC for the metropolis was officially launched, announcing its founding members and strategic investors. Disclosing the participants from the outset clearly outlined the market structure and operating orientation of the centre.