Latest news with #NguyenVanThang
Business Times
a day ago
- 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
a day ago
- 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.
CNA
a day ago
- Business
- CNA
Vietnam approves plans for international financial centre amid US trade pressure
HANOI: Vietnam's lawmakers approved a plan on Friday (Jun 27) to establish international financial centres in Ho Chi Minh City and Da Nang to attract investment and strengthen its global financial standing as economic uncertainties rise. The centres will operate under unified management, with Ho Chi Minh City focusing on capital, banking, and currency markets, and Danang on sustainable and green finance, leveraging its strategic location near East-West economic corridors, the government said in a statement. Finance Minister Nguyen Van Thang called the policies "innovative and competitive", noting their alignment with international standards, the statement added. A key feature will allow members of the centres to secure international financing and use foreign currency for transactions. Vietnam's foreign investment inflows rose 7.9 per cent to US$8.9 billion in the first five months of the year, while pledges surged 51.1 per cent to US$18.4 billion, the government said. However, the United States has threatened to impose 46 per cent tariffs on Vietnamese exports unless concessions are made, which could slow the momentum. Prime Minister Pham Minh Chinh said earlier this week that Vietnam expects to reach a trade deal with the United States within two weeks. The financial centres will adopt international accounting and financial standards, including capital adequacy and liquidity ratios for both domestic and foreign-owned banks, the government added. Vietnam remains a key manufacturing hub for global firms such as Samsung Electronics, Foxconn, Intel, Nike and Adidas.
Reuters
a day ago
- Business
- Reuters
Vietnam approves plans for international financial centre amid US trade pressure
HANOI, June 27 (Reuters) - Vietnam's lawmakers approved a plan on Friday to establish international financial centres in Ho Chi Minh City and Danang to attract investment and strengthen its global financial standing as economic uncertainties rise. The centres will operate under unified management, with Ho Chi Minh City focusing on capital, banking, and currency markets, and Danang on sustainable and green finance, leveraging its strategic location near East-West economic corridors, the government said in a statement. Finance Minister Nguyen Van Thang called the policies "innovative and competitive," noting their alignment with international standards, the statement added. A key feature will allow members of the centres to secure international financing and use foreign currency for transactions. Vietnam's foreign investment inflows rose 7.9% to $8.9 billion in the first five months of the year, while pledges surged 51.1% to $18.4 billion, the government said. However, the United States has threatened to impose 46% tariffs on Vietnamese exports unless concessions are made, which could slow the momentum. Prime Minister Pham Minh Chinh said earlier this week that Vietnam expects to reach a trade deal with the United States within two weeks. The financial centres will adopt international accounting and financial standards, including capital adequacy and liquidity ratios for both domestic and foreign-owned banks, the government added. Vietnam remains a key manufacturing hub for global firms such as Samsung Electronics, Foxconn, Intel, Nike, and Adidas.
The Star
12-06-2025
- Business
- The Star
Vietnam advances plans for international financial centre as trade risks grow
FILE PHOTO: A container ship sails past a luxury apartment complex in Ho Chi Minh City on December 3, 2021. The financial centre will operate in both financial hub Ho Chi Minh City and tourism-focused Danang.- AFP HANOI: Vietnam is moving forward with plans to establish an international financial centre to enhance its role in the global financial market and attract international capital flows, Finance Minister Nguyen Van Thang told parliament on Tuesday (June 10). The initiative could position Vietnam as a regional hub for financial activity, boosting its economic influence, according to Thang and a draft plan, now in its 30th version, seen by Reuters. The draft includes policies covering foreign exchange liberalisation, banking activities, capital market development, tax incentives and labour provisions targeting experts and investors. Foreign investment inflows into Vietnam in January-May rose 7.9 per cent to US$8.9 billion, the government said, while foreign investment pledges were up 51.1 per cent to US$18.4 billion. But the United States has threatened heavy tariffs on Vietnamese-made goods if it does not make major concessions, which could dampen its investment momentum. The country is an important manufacturing base for companies ranging from Samsung Electronics, Foxconn and Intel to Nike and Adidas. The National Assembly, Vietnamese parliament, will vote on the resolution on June 27. A key feature allows members of the financial centre to use foreign currency for transactions and secure international financing, according to the draft. "Members are permitted to establish trading floors and platforms for commodities, carbon credits, cultural products and innovative startups," the draft said. Two sources familiar with the matter confirmed the draft as the latest version. Administrative procedures will be simplified, the draft added, creating more favourable conditions for participants. The financial centre will apply accounting and financial standards, including minimum capital adequacy and liquidity ratios, specific to both 100 per cent foreign-owned banks and domestic banks, aligning with international practices. It will operate across two cities: financial hub Ho Chi Minh City and tourism-focused Danang. The government had earlier set a goal to have the centres operational this year. - Reuters
