Vietnam has just taken a transformative step toward global financial integration. With the passage of Resolution No. 222/2025/QH15, set to take effect on 1 September 2025, the country is launching its first International Financial Centers (IFCs) in Ho Chi Minh City and Da Nang—designed not just as policy experiments, but as platforms for high-impact investment, innovation, and capital mobility. Resolution 222 takes effect on 1 September 2025.
For investors, financial institutions, and global enterprises, this is more than regulatory reform, it’s a significant alignment of incentives (including a 10% corporate tax rate for up to 30 years for eligible entities), access, and strategic positioning in one of Asia’s fastest-growing economies. From streamlined licensing and long-term tax breaks to liberalized foreign exchange controls and green finance incentives, the IFC framework offers a compelling value proposition. But participation isn’t automatic, and the window for early movers is narrow.
This article provides a comprehensive picture of Resolution 222, who is entitled to participate, what benefits are available, and how businesses can strategically prepare to capture early-mover advantages in Vietnam’s emerging financial architecture.
A controlled exception model with strategic locations: Ho Chi Minh City & Danang
Vietnam’s International Financial Centers (IFCs) are designed as “controlled exception” zones — geographically defined areas with tailored legal, tax, and regulatory frameworks. This model grants greater autonomy, allowing financial institutions to operate under international norms while remaining within Vietnam’s jurisdiction.
- In Ho Chi Minh City, the IFC will span the Thu Thiem New Urban Area and a portion of the former District 1, forming a dual-core financial zone focused on capital markets, fintech, and investment banking.
- Danang will serve as a hub for digital finance, green finance, and regulatory sandboxes, supporting innovation and sustainable development.
Who can join the IFC and under what conditions
IFC membership is open to a wide range of entities, including:
- Banks, insurance firms, securities companies
- Investment funds and asset managers
- Market infrastructure entities
- Fintech and digital asset companies
- Consulting firms and support service providers
- Non-financial enterprises
- Other entities as prescribed by the Government
While the inclusion of non-financial enterprises suggests a wide scope, it is expected that eligible entities must have relevant operations that align with the strategic objectives of the IFC, such as contributing to financial innovation, infrastructure, or support services. The specific criteria and scope for these entities are likely to be clarified in upcoming implementation guidelines.
Importantly, membership is not automatic. Entities must operate within the designated IFC zones and meet defined standards for governance, transparency, and operational integrity.
How to register as a member of Vietnam’s IFC
To become a member of the IFC, companies must either register, be recognized, or obtain a license for establishment and operation. For financial institutions such as banks and insurance companies, the Establishment and Operation License also serves as the Certificate of Member Registration.
However, the resolution does not yet provide detailed procedures for registration, to reflect step-by-step application process, required documentation, evaluation criteria, and timelines or procedural details.
These specifics are expected to be defined in upcoming implementation guidelines issued by the designated Executive and Supervisory Agencies, which will be responsible for managing the IFCs, issuing detailed operational regulations, and overseeing compliance and member activities.
Until then, interested entities should monitor updates and begin preparing their strategic and compliance documentation in anticipation of formal guidance.
Exception:
Under Resolution 222, certain strategic investors may request recognition as IFC members without undergoing standard registration procedures. This applies to:
- Entities listed in the Fortune Global 500, or their direct parent companies, excluding those in banking, securities, and insurance.
- Top ten domestic financial institutions by charter capital in their respective sectors, also excluding banking, securities, and insurance.
Incentives and strategic advantages: More than just tax breaks
While tax incentives are a major draw, Vietnam’s International Financial Centers (IFCs) offer a holistic package of benefits that go far beyond corporate tax rates. These incentives are designed to create a globally competitive environment for financial institutions, fintech innovators, and international investors.
Here is a breakdown of the key advantages:
1. Tax incentives
The tax regime remains one of the most attractive in the region:
Corporate Income Tax (CIT):
- 10% for 30 years for projects in priority sectors (with 4 years full exemption + 50% reduction for 9 years).
- 15% for 15 years for other sectors (with 2 years exemption + 50% reduction for 4 years).
- Businesses may choose the most favourable scheme if eligible for multiple incentives
Personal Income Tax (PIT): Full PIT exemption until 2030 for
- Vietnamese and foreign professionals (managers, experts, scientists).
- Individuals earning from share transfers or capital contributions in IFC enterprise
2. Liberalized foreign exchange controls
IFC members, especially 100% foreign-owned entities are granted exemptions from Vietnam’s standard foreign exchange control procedures. This includes:
- The ability to freely use foreign currencies in transactions between IFC members.
- Simplified capital inflow and outflow processes.
- Greater flexibility in managing offshore accounts and cross-border payments
This is a significant shift from Vietnam’s traditionally cautious approach to capital controls and signals a more open, investor-friendly regime.
3. Specialized licensing and regulatory flexibility
Foreign banks and financial institutions operating in IFCs can benefit from:
- Tailored licensing regimes, including the ability to establish single-member limited liability banks or branches.
- Flexibility in applying international accounting standards, risk provisioning, and prudential ratios based on the parent company’s policies
This allows global institutions to operate under familiar frameworks, reducing compliance friction and improving operational efficiency.
4. Green finance incentives
Vietnam is positioning its IFCs as green finance hubs. Key features include:
- Green certification schemes for eligible projects.
- Access to capital mobilization mechanisms for sustainable infrastructure.
- Preferential treatment for green bonds and ESG-aligned investments
This aligns with Vietnam’s broader climate commitments and opens up new channels for impact-driven capital.
5. Fintech regulatory sandbox
To foster innovation, the IFCs will host a regulatory sandbox for fintech companies. This includes:
- Temporary exemptions from compliance with certain legal and technical standards.
- Liability waivers for state-related damages during the experimentation phase.
- Support for emerging technologies such as blockchain, digital assets, and alternative payment systems
This is a rare opportunity for startups and tech firms to test and scale in a controlled, supportive environment.
6. Immigration and labour reforms
To attract global talent, the IFC framework includes:
- Long-term visas and temporary residence cards valid up to 10 years.
- Permanent residency options for key investors, experts, and executives.
- Work permit exemptions for foreign professionals working in IFCs if they meet the professional standards prescribed by the Government or the Executive body.
- No labour quota or labour market test requirements for hiring foreign staff
These reforms significantly reduce administrative burdens and make Vietnam more accessible to international professionals.
7. English as an official working language
The resolution allows for English to be used as an official working language (or English accompanied by a Vietnamese translation) within the IFCs. This applies to:
- Contracts and legal documents.
- Arbitration and dispute resolution.
- Regulatory filings and communications with IFC authorities.
This is a major shift from Vietnam’s usual requirement for Vietnamese-language documentation and reflects the IFCs’ goal of attracting global participants and aligning with international norms.
8. Adoption of IFRS (International Financial Reporting Standards)
IFC members—especially financial institutions and holding companies—are expected to apply IFRS in their accounting and reporting. This is part of the broader effort to:
- Improve transparency and comparability.
- Facilitate cross-border investment and financial operations.
- Align with global financial reporting standards.
While Vietnam has been gradually moving toward IFRS adoption nationwide, the IFC framework accelerates this transition by making IFRS the preferred or required standard for entities operating within the centers.
Strategic structuring: Holding companies and capital mobility
In Vietnam, the concept of a holding company is not explicitly defined in law, but it is legally permitted and increasingly used, especially by foreign investors. Under the Enterprise Law and Investment Law, investors can establish companies that function as holding entities, typically in the form of limited liability companies or joint-stock companies.
In Resolution 222, the concept of holding companies is implicitly supported through mechanisms that facilitate their establishment and operation within the IFCs. These entities can serve as:
- Regional investment vehicles for multinational corporations.
- Capital structuring platforms for family offices and private equity.
- Tax-efficient conduits for dividend flows and capital gains.
However, these entities must maintain economic substance and comply with international tax standards, including BEPS (Base Erosion and Profit Shifting) principles. This ensures that the IFCs remain credible and aligned with global transparency norms.
Implications for foreign investors
For international investors, these developments represent a transformational opportunity:
- Market Entry Simplified: With relaxed licensing and foreign exchange rules, setting up operations becomes faster and more predictable.
- Talent Mobility Enhanced: Immigration reforms make it easier to attract and retain global talent.
- Innovation Encouraged: Fintech and green finance players can test new models in a legally protected environment.
- Long-Term Certainty: Tax and regulatory incentives are structured for stability, supporting long-term investment planning.
Final thoughts and expert recommendations
Vietnam’s International Financial Centers represent a strategic gateway to long-term investment, innovation, and global capital integration. For businesses with the vision and capability to participate, the potential upside is substantial. But timing and preparation are critical.
To capture early-mover advantages, we recommend:
- Conducting a strategic fit assessment: Evaluate how your business aligns with the IFC’s objectives—especially in areas like financial innovation, ESG, and digital infrastructure.
- Engaging expert advisors: Early consultation can help clarify eligibility, anticipate licensing requirements, and avoid compliance pitfalls.
- Structuring for flexibility and substance: Consider holding entities or regional platforms that meet international tax standards and support capital mobility.
- Preparing internal documentation: Governance, transparency, and operational integrity will be key differentiators in the approval process.
- Monitoring regulatory developments: As detailed guidance documents (eg., decrees and implementation laws) are still pending, staying informed will be essential for timely and compliant entry.
As Vietnam’s International Financial Centers transition from resolution to implementation, much remains to be clarified through forthcoming government regulations. While the full operational roadmap is still evolving, businesses should not wait passively. Strategic planning—grounded in governance, compliance, and alignment with the IFC’s objectives—will be key to readiness once formal procedures are announced.
If you’re considering participation in Vietnam’s IFCs, our team at Vieter Vietnam is here to help. With deep expertise in finance and licensing, and years of hands-on experience navigating Vietnam’s regulatory landscape, we offer strategic, forward-looking advice tailored to your business. While the full implementation framework is still unfolding, early planning and informed positioning can make all the difference.
Rizwan Khan – Managing Partner – r.khan@Vieter.com
Kevin Lam – Partner – k.lam@Vieter.com
Vlad Savin – Partner – v.savin@Vieter.com
Thao Do – Partner – thao.do@Vieter.com
Thao Nguyen – Senior Manager – Licensing and Corporate Secretarial – thao.nguyen@Vieter.com