Latest news with #IFCs
Business Times
27-06-2025
- Business
- Business Times
Vietnam offers incentives for members of its two-city International Financial Centre
[HO CHI MINH CITY] Vietnam's parliament on Friday (Jun 27) approved a slew of special mechanisms and incentives for members of the country's International Financial Centre (IFC), with the aim to develop it into one of the world's top 20 IFCs by 2045. Set to be established this year, the IFC will span two cities – Ho Chi Minh City in the south and Da Nang in the country's centre. Dedicated management and oversight bodies, including a court and international arbitration centre for dispute resolution, will also be created. The parliament's resolution, effective from September, mandates the registration and admission of IFC members – particularly those in sectors such as banking, insurance, securities brokerage, fund management, financial market infrastructure, fintech, digital assets and advisory services. Under the approved policies, members will be permitted to conduct transactions and borrow in foreign currencies within the IFC or with external entities and individuals. They will also be granted tax holidays on their corporate income as well as on the personal income of their highly skilled personnel. For instance, new investment projects in the IFC's priority sectors could enjoy a preferential corporate income tax rate of 10 per cent for 30 years, with a tax exemption for up to four years and a 50 per cent tax reduction for the following nine years. In addition, they may be eligible for land-lease terms of up to 70 years and receive priority allocation of state sites for their developments. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up Both Vietnamese and foreign experts working in the IFC will be exempt from income tax until the end of 2030. Upon obtaining approvals from the centre's authorities, member organisations will also be able to establish trading platforms for commodities and derivatives, carbon credits, cultural and artistic products, precious metals, green finance instruments, and other specialised products. Disputes in the IFC can be resolved under Vietnamese law or through either domestic or foreign arbitrators and courts. Encouraging participation The other policies include incentives and mechanisms to encourage the participation of strategic investors and foreign banks or their branches. There are also provisions for the immigration of foreign experts, construction, infrastructure development, regulatory sandboxes for fintech, and the export and import of goods and services at the IFC. Addressing parliament, Finance Minister Nguyen Van Thang said that the government will develop detailed guidelines to implement these policies, including a comprehensive legal framework for supervisory mechanisms, transactions on trading platforms, capital-flow controls, anti-money laundering measures, and flexible liquidity management tools. Tyler McElhaney, country head for Vietnam at Apex Group, an alternative assets services provider, said that the most successful IFCs in the world often rest on a common set of policies designed to 'ensure money and the people who manage it can move freely'. Apex Group, which is headquartered in Bermuda, has more than US$3.4 trillion in assets under management. It was among the first firms to establish a presence in Dubai IFC in 2006, as well as Abu Dhabi Global Market in 2013. Earlier this year, it opened a Vietnam office in Ho Chi Minh City. 'Equally critical is the coordinated allocation of budgets between central and local governments to build the underlying infrastructure – utilities, real estate developments and mixed-use complexes – that anchors a financial district,' McElhaney added. The local governments of the two cities hosting Vietnam's IFC have designated sites cleared for future developments, aiming to attract and channel billions of dollars in investment projects. Ho Chi Minh City recently unveiled an ambitious scheme to seek US$7 billion to develop the centre within the next five years. The core area will span 9.2 hectares (ha) in the Thu Thiem New Urban Area, a peninsula in the city's downtown that lies across the Saigon River. Meanwhile, Da Nang has earmarked six land parcels for the IFC's development, including a main zone of five lots spanning 6.17 ha along a street that connects the city centre to My Khe Beach. Foreign investors have shown strong interest in these prime locations, with the Trump Organization eyeing a tower in Thu Thiem, and other groups of American and Singaporean investors proposing major developments for the IFC in Da Nang. 'IFCs demand significant investment but can deliver high returns, especially in destinations that are attractive to high foreign direct investment,' said Govinda Singh, executive director at Colliers International. 'Vietnam's high GDP growth, coupled with rapidly growing urbanisation, should drive demand for high-end office spaces and commercial hubs,' he added.
Business Times
27-06-2025
- Business
- Business Times
Vietnam dangles incentives for members of its two-city International Financial Centre
[HO CHI MINH CITY] Vietnam's parliament on Friday (Jun 27) approved a slew of special mechanisms and incentives for members of the country's International Financial Centre (IFC), with the aim to develop it into one of the world's top 20 IFCs by 2045. Set to be established this year, the IFC will span two cities – Ho Chi Minh City in the south and Da Nang in the country's centre. Dedicated management and oversight bodies, including a court and international arbitration centre for dispute resolution, will also be created. The parliament's resolution, effective from September, mandates the registration and admission of IFC members – particularly those in sectors such as banking, insurance, securities brokerage, fund management, financial market infrastructure, fintech, digital assets and advisory services. Under the approved policies, members will be permitted to conduct transactions and borrow in foreign currencies within the IFC or with external entities and individuals. They will also be granted tax holidays on their corporate income as well as on the personal income of their highly skilled personnel. For instance, new investment projects in the IFC's priority sectors could enjoy a preferential corporate income tax rate of 10 per cent for 30 years, with a tax exemption for up to four years and a 50 per cent tax reduction for the following nine years. In addition, they may be eligible for land-lease terms of up to 70 years and receive priority allocation of state sites for their developments. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up Both Vietnamese and foreign experts working in the IFC will be exempt from income tax until the end of 2030. Upon obtaining approvals from the centre's authorities, member organisations will also be able to establish trading platforms for commodities and derivatives, carbon credits, cultural and artistic products, precious metals, green finance instruments, and other specialised products. Disputes in the IFC can be resolved under Vietnamese law or through either domestic or foreign arbitrators and courts. Encouraging participation The other policies include incentives and mechanisms to encourage the participation of strategic investors and foreign banks or their branches. There are also provisions for the immigration of foreign experts, construction, infrastructure development, regulatory sandboxes for fintech, and the export and import of goods and services at the IFC. Addressing parliament, Finance Minister Nguyen Van Thang said that the government will develop detailed guidelines to implement these policies, including a comprehensive legal framework for supervisory mechanisms, transactions on trading platforms, capital-flow controls, anti-money laundering measures, and flexible liquidity management tools. Tyler McElhaney, country head for Vietnam at Apex Group, an alternative assets services provider, said that the most successful IFCs in the world often rest on a common set of policies designed to 'ensure money and the people who manage it can move freely'. Apex Group, which is headquartered in Bermuda, has more than US$3.4 trillion in assets under management. It was among the first firms to establish a presence in Dubai IFC in 2006, as well as Abu Dhabi Global Market in 2013. Earlier this year, it opened a Vietnam office in Ho Chi Minh City. 'Equally critical is the coordinated allocation of budgets between central and local governments to build the underlying infrastructure – utilities, real estate developments and mixed-use complexes – that anchors a financial district,' McElhaney added. The local governments of the two cities hosting Vietnam's IFC have designated sites cleared for future developments, aiming to attract and channel billions of dollars in investment projects. Ho Chi Minh City recently unveiled an ambitious scheme to seek US$7 billion to develop the centre within the next five years. The core area will span 9.2 hectares (ha) in the Thu Thiem New Urban Area, a peninsula in the city's downtown that lies across the Saigon River. Meanwhile, Da Nang has earmarked six land parcels for the IFC's development, including a main zone of five lots spanning 6.17 ha along a street that connects the city centre to My Khe Beach. Foreign investors have shown strong interest in these prime locations, with the Trump Organization eyeing a tower in Thu Thiem, and other groups of American and Singaporean investors proposing major developments for the IFC in Da Nang. 'IFCs demand significant investment but can deliver high returns, especially in destinations that are attractive to high foreign direct investment,' said Govinda Singh, executive director at Colliers International. 'Vietnam's high GDP growth, coupled with rapidly growing urbanisation, should drive demand for high-end office spaces and commercial hubs,' he added.
Business Insider
24-06-2025
- Business
- Business Insider
Two thirds of fintech use IFCs as cross-border growth tops agenda
Access to international markets is a key priority for a third of executives when choosing a jurisdiction 28% see access to funding and investment as a challenge, while the same number point to regulatory compliance and changing policies BVI Finance launches Destination Digital at Fintech on the Seas, a first-of-its-kind digital assets conference taking place on Necker Island The Destination Digital report, launched today by BVI Finance, reveals the strategic priorities, challenges, and jurisdictional considerations facing global fintech businesses. Based on the views of 451 fintech executives from the world's major financial hubs, it finds a striking 94% of global fintech leaders consider cross-border growth either critical or important to their success. In fact, 63% are already operating through entities in International Finance Centres (IFCs), showing that jurisdictions play a pivotal role in how decentralised and digital-first businesses operate and grow. When fintech businesses choose to incorporate, several factors guide the decision-making process. Access to international markets and banking services is cited as crucial by 33% of global executives, closely followed by key attributes of jurisdictions such as a stable and business-friendly regulatory environment (32%) and an established professional services network (27%). This new generation of businesses has emerged due to rapid technological advancement, radically changing new business models and products. With this in mind, global executives see investment in emerging technologies as crucial to staying competitive. In fact, nearly half (46%) of fintech businesses say tech integration to enhance operational efficiency is a priority over the next two years, with business leaders within exchanges (64%) and the tokenisation sector (59%) especially focused on automation and digital infrastructure. Despite their drive for global growth, fintech businesses face a range of challenges as they scale and expand. The survey also found that over a quarter (28%) see access to funding and investment as a challenge, while the same number (28%) point to regulatory compliance and changing policies as a major obstacle to business growth. The fragmented and ever-changing regulatory landscape, particularly in the digital assets space, means these businesses require jurisdictions with the ability to navigate compliance requirements, such as Anti-Money Laundering (AML) and Know Your Client (KYC), across multiple markets – given 24% of global fintech executives see this as significant challenge, IFCs provide the solution with an innovative approach to regulation. Elise Donovan, CEO, BVI Finance, said: ' As this new generation of business look beyond borders to scale, they must navigate complex and volatile geopolitical and economic conditions, and crucially, evolving regulatory frameworks. This has created a fragmented operating environment for fast-scaling companies operating on a global stage.' 'As they plot out their roadmap for growth, where to incorporate their businesses has become critical to how they navigate this complex web, and how they balance credibility and security with the ability to innovate at pace. Given this, it is critical to understand the needs of this new generation of business, and how they are evolving. One thing is crystal clear, IFCs have a pivotal role to play and the BVI is leading a wave of innovation.' 'As businesses within the global fintech sector increasingly seek to incorporate in jurisdictions with the expertise, infrastructure and regulatory clarity, IFCs will remain critical to the industry's transformation and global growth.' Methodology The research was conducted by Censuswide, among a sample of 451 business leaders (director+) working in fintech, aged 18+ across the USA, UK, Mexico, Singapore, Hong Kong, and China. Censuswide abides by and employs members of the Market Research Society and follows the MRS code of conduct and ESOMAR principles. Censuswide is also a member of the British Polling Council. About BVI Finance BVI Finance plays a pivotal role in the promotion and marketing of the BVI as a leading international business and finance centre. Established in 2002 as part of the government's commitment to support the financial services industry, its aim is to provide a voice to the BVI's financial industry. The launch of BVI Finance marked the final stage in the government's commitment to international principles to separate the marketing/promotional functions from the regulatory/supervisory areas of the Territory's financial services industry. FinTech on the Seas 2025 is a first-of-its-kind digital assets conference taking place from Wednesday, 25th June to Friday, 27th June on Sir Richard Branson's 74-acre retreat, Necker Island. The exclusive event, focused on innovation, regulation, and global connectivity, will bring together global innovators, policymakers, and industry leaders to foster cross-border collaboration and deliver new insights on how emerging technologies are reshaping global financial systems. Contact Senior Director Dan Pike
