On September 1, 2025, a new resolution took effect in Vietnam to establish an international financial center located in two cities, Ho Chi Minh City and Da Nang. Members of the international financial center will receive favorable regulatory treatment to promote sustainable finance and green finance, generate resources for green energy transitions, develop skilled finance experts, and pursue other goals. The Vietnam National Assembly passed the resolution on June 27, 2025. (Resolution No.222/2025/QH15, art. 35, para. 1; art. 4, para. 2; art. 5, para. 6; art. 25.)
New Policies Favor International Financial Center Members
Resolution 222 specifies conditions for membership in the financial center, which is limited to organizations and enterprises that meet minimum financial requirements, have a good reputation, and engage in business areas related to the strategic development of the center. (Art. 10, para. 1.)
Members may choose to apply a foreign country’s laws, with the other party’s agreement, for transactions where at least one party is foreign entity. The foreign law cannot be applied if the consequence would be contrary to the fundamental principles of the laws of Vietnam. When a transaction involves real estate, the laws of the countries where the real estate is located must be applied if the transaction relates to the ownership of the property, its rental, and its use as collateral. (Art 6, para. 2.)
Members may establish holding corporations to generate capital abroad. When generating capital from either a foreign individual or legal entity, members are not obliged to seek approvals from the authorities. In such cases, however, they must report transactions following guidance from the government. The Ministry of Finance is working on draft guidance on the financial center’s establishment, operations, and policies, according to a disclosure from the agency. The official language for transactional communications and operational management at the center is English or English with a Vietnamese translation. (Art. 11, para. 1.; art. 7, para. 1.)
Foreign investors can become “foreign investor members” if they acquire, either in full or in part, shares or contributed capital of center members. Foreign investor members are not required to have ongoing investment projects to establish business entities in the center. (Art. 11, para. 2(a)(b.).) They also are not required to submit commitments on construction, the environment, and firefighting and fire prevention that are required under the Law on Investment and assessed by governmental agencies. Additionally, they are exempt from procedures for registering capital contributions or purchases of shares or stakes as prescribed by investment law. They are only required to provide notification about changes in “enterprise registration contents in accordance with enterprise law, except in the banking sector.” (Law on Investment (No.61/2020/QH14, amended by No.57/2024/QH15, art. 3, para. 2.; Resolution 222, art. 23.; art. 11, para. 2(c).)
Less Restrictive Measures for Foreign Currency Transactions
Resolution 222 allows financial center members to pay, transmit, list, quote, and price foreign currency, although the prevailing regulations generally prohibit transactions and payments conducted in foreign currencies between residents and nonresidents. In addition, members are eligible for foreign currency loans from other foreign entities abroad. When transferring foreign currency for investment activities, members that are 100% foreign owned are not required to comply with Vietnamese administrative procedures on foreign currency management. (Art. 16, para. 1; Circular 32/2013/TT-NHNN, art. 3; Resolution 222, art 16, paras. 2, 7(a).)
Lower Tax Rates for Members and Workers
Corporate income tax rates for a variety of eligible entities may be calculated in one of two ways: 1) 10% for 30 years, exempted for no more than four years and reduced to 50% of payable tax for no more than nine following years; or 2) 15% for 15 years, exempted for no more than two years and reduced to 50% of payable tax for no more than four following years. (Resolution 222, art. 19, para. 1(a)(b).)
Foreign and local individuals working in the center are eligible for the exemption of their personal income tax until the end of 2030. (Art. 19, para 2(a).)
International Arbitration Center Established
The resolution establishes an International Arbitration Center under the International Finance Center in accordance with the law of arbitration. The arbitration center is empowered to settle disputes upon agreement of the disputing parties, unless the disputes relate to the exercise of governmental power. The decisions and awards issued by arbitral tribunals under the International Arbitration Center are final and enforceable. (Art. 3, para. 7; art. 9, para. 1; art. 30, paras. 2(c), 3.)
Additionally, under the resolution, Vietnam retains its rights to promulgate national security protection regulations concerning the financial center. (Art. 6. para. 5.)
Prepared by Nguyet Le, Law Library Intern, under the supervision of Sayuri Umeda, Foreign Law Specialist
Law Library of Congress, November 25, 2025
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