You are using an outdated browser and your browsing experience will not be optimal. Please update to the latest version of Microsoft Edge, Google Chrome or Mozilla Firefox. Install Microsoft Edge

January 22, 2025

Vietnam’s Draft Resolution on Financial Centers: Implications for Fintech and Banking

Subscribe to Updates

Tasked with implementing the Politburo’s policy outlined in Notice No. 47-TB/TW dated November 15, 2024, the prime minister of Vietnam issued Decision No. 1718/QD-TTg on December 31, 2024, appointing himself as the head of a steering committee dedicated to the establishment of an international financial center in Ho Chi Minh City and a regional financial center in Da Nang by 2025. The Ministry of Planning and Investment has subsequently drafted an outline for the National Assembly’s Resolution on the Establishment of Regional and International Financial Centers in Vietnam (“Draft Resolution”).

This Draft Resolution introduces two key policy groups: (i) policies governing the quantity, location, structure, organization, functions, and responsibilities of the financial centers; and (ii) policies applicable to various areas and matters within the financial centers.

Notably, under the Draft Resolution, fintech has been identified as a key sector, with a specific focus on the implementation of a “controlled sandbox” policy for business models involving virtual assets and cryptocurrencies. Under this framework, transactions related to virtual assets and cryptocurrencies will be permitted from July 1, 2026, subject to licensing, management, impact assessment, and risk oversight by the financial centers’ Management and Operations Committee.

Scope of Application and Key Principles

The Draft Resolution applies to a wide range of stakeholders, including investors, regulatory agencies, organizations, and individuals involved in the establishment, organization, and operation of regional and international financial centers in Vietnam. These financial centers will have clearly defined geographical boundaries and specific locations, which will be further specified and detailed by the People’s Committees of Ho Chi Minh City and Da Nang.

Companies successfully registered as members of these financial centers will benefit from special investor-friendly policy principles, which may differ from the general legal and regulatory framework applicable in other parts of Vietnam.

Most notably, the state will implement mechanisms and policies to encourage capital inflows, facilitate the adoption of advanced technology and modern management practices, and promote infrastructure development within the financial centers. The management agencies of the financial centers will apply specialized administrative procedures to meet investors’ needs in accordance with international standards and best practices. Additionally, where provisions of the Draft Resolution differ from existing laws, resolutions, or ordinances, the provisions of the Draft Resolution will prevail.

Policy Framework for Establishment and Governance of Financial Centers

The Draft Resolution outlines the framework for the establishment and governance of financial centers in Vietnam, which will include a comprehensive international financial center in Ho Chi Minh City and a regional-scale financial center in Da Nang. To ensure effective management and operations, the financial centers will be overseen by dedicated agencies, including a (i) management and operations committee, (ii) financial supervision committee, and (iii) international arbitration center.

The management and operations committee will be responsible for the overall administration and strategic oversight of the financial center. Its organizational structure will consist of a board of directors and several key departments, including strategic management, financial management, operations supervision, and management coordination.

The financial supervision committee will focus on ensuring compliance with international financial standards and regulations, fostering a transparent and integrity-driven environment. This committee will also comprise a board of directors supported by specialized departments, such as audit, legal, welfare, risk management, and governance and human resources.

Additionally, each financial center will host an international arbitration center, which will facilitate the resolution of disputes arising from investment and business activities within the financial ecosystem.

Specific Policies for Financial Centers

The Draft Resolution also sets forth specific policies that will govern key areas within the financial centers. These policies cover the membership registration system; currency, banking, and foreign exchange management; fintech; capital markets; personal and corporate income tax; immigration and residency; human resource training and development; labor, employment, and social security; strategic investments; land use and infrastructure development; and trade and business regulations. Furthermore, policies related to dispute resolution mechanisms for investment and business activities are also included.

A significant feature of the Draft Resolution is the introduction of a controlled sandbox policy for fintech enterprises, particularly those engaged in virtual assets and cryptocurrency-related business models. Under this framework, transactions involving virtual assets and cryptocurrencies will be clearly permitted within the financial centers starting from July 1, 2026. These transactions will be subject to licensing, regulatory oversight, impact assessment, and risk management measures administered by the Management and Operations Committee. Additionally, issues concerning anti-money laundering measures related to crypto assets and cryptocurrencies; the issuance, ownership, and trading of non-fungible tokens (NFTs) and utility tokens; and regulatory measures for crypto-asset mining activities (to limit risks to energy security and the environment) will be further regulated by the government.

In the domain of currency, banking, and foreign exchange management, the Draft Resolution proposes policies that reflect international best practices and address the practical needs of the financial centers. These policies include (i) anti-money laundering regulations, including those related to crypto assets; (ii) allowing financial transactions within the centers in both VND and freely convertible foreign currencies; and (iii) procedures and processes for priority areas in the financial centers for some traditional products in commercial banking activities.

The Draft Resolution also provides a streamlined regulatory framework for establishing and managing the operations of foreign credit institutions within the financial centers. Notably, banks and credit institutions headquartered in the centers will not be subject to foreign ownership restrictions or investment conditions when providing financial services within the centers or across borders. In addition, to align with international financial standards, the implementation of Basel III regulations is scheduled to commence on January 1, 2026. Furthermore, a digital banking model will be introduced, enabling commercial banks to offer advanced digital services within the financial centers from the same date.

Outlook

By establishing a structured regulatory framework, the forthcoming resolution aims to attract investment, drive financial innovation, and position Vietnam as a competitive player in the global financial landscape. A key highlight of the resolution is its focus on the fintech sector, particularly through initiatives such as the controlled sandbox for virtual assets and cryptocurrencies. This demonstrates Vietnam’s commitment to advancing digital transformation in financial services, fostering opportunities for fintech enterprises, and driving innovation across the industry.

Related Professionals

Industries

Fintech

Technology

Practices

Banking and Finance

Location

RELATED INSIGHTS​ 

August 5, 2024
On June 28, 2024, Thailand’s Board of Investment (BOI) updated its list of promoted activities to include data hosting, which is listed as “Activity 8.2.4 Data Hosting Services.” Qualifying data hosting services are eligible for a corporate income tax exemption (capped) for eight years, along with other tax and nontax incentives, such as import duty exemption on imported machinery to be used in the project, the right for foreigners to own land, and work permit and visa facilitation for expats, among others. To be eligible for these BOI incentives, projects must: Provide services for leasing host servers for data storage (data hosting); Have at least two data centers located in Thailand that meet or exceed the ISO/IEC 27001 data center standards; and Have an investment amount (excluding cost of land and working capital) of at least THB 5 billion. Apart from the above specific criteria, projects also need to comply with the general BOI criteria, such as a debt-to-equity ratio no higher than 3:1, submission of a feasibility study report, and use of new machinery, among others. For more details on BOI incentives for software and data center activities, or on any aspect of investment promotion in Thailand, please contact Athistha (Nop) Chitranukroh at [email protected], Nopparat Lalitkomon at [email protected], or Napassorn Lertussavavivat at [email protected].
Read More
July 19, 2024
Tilleke & Gibbins has contributed the Cambodia, Myanmar, Thailand, and Vietnam chapters to How the Use of Artificial Intelligence Is Regulated in Southeast Asia, a comparative resource published by Drew Network Asia (DNA). The guide provides an accessible introduction to artificial intelligence (AI) and examines how ASEAN member states are approaching governance, regulation, and responsible deployment of AI technologies. The publication begins by outlining core AI concepts and summarizing the ASEAN Guide on AI Governance and Ethics, which reflects the region’s collective approach to promoting innovation while addressing risks. It then presents a comparative overview of nine ASEAN jurisdictions, highlighting emerging national strategies, regulatory developments, and institutional frameworks. Each country chapter responds to a consistent set of ten practical questions. These cover whether a national AI strategy has been issued; the extent to which dedicated AI laws or sectoral regulations apply; the existence of relevant judicial decisions; available guidelines and government support schemes; regulators responsible for AI oversight; approaches to liability, copyright, and data protection; and key considerations for organizations deploying AI technologies. By consolidating developments across the region, the guide serves as a useful reference for businesses exploring AI-related opportunities or compliance obligations in Southeast Asia. As regulatory approaches continue to evolve, readers seeking jurisdiction-specific advice are encouraged to contact the practitioners listed in each chapter. The full guide is available for download using the button below or directly from the DNA website.
Read More
July 10, 2024
The need for privacy and security has grown in tandem with the rapid proliferation of internet-enabled technologies. This is a major concern for consumers and individuals, and governments are increasingly mindful of online threats to their national security and their citizens. All of this represents an imposing challenge for companies—especially now that technology has enabled them to operate with relative ease across jurisdictions throughout the world.
Read More
July 5, 2024
The landscape of intellectual property (IP) has transformed alongside advancements in technology, transitioning from traditional methods to modern online approaches. A growing number of IP infringers are moving their illegal activities to the online sphere, particularly through the sale of counterfeit goods on their websites, social media, or e-commerce platforms. In response to these shifting pressures, Thailand implemented the Computer-Related Crime Act B.E. 2550 (CCA) on July 18, 2007, and amended it in 2017, aiming to enhance the effectiveness of combating online infringement by empowering government officials to request that the court block computer data (called “website-blocking”) that infringes upon other parties’ intellectual property rights, as per section 20(3) of the CCA. From 2018 to May 2024, Thailand’s Criminal Court and Central Intellectual Property and International Trade Court have issued 53 orders to block more than 1,779 infringing URLs. One significant recent development is the Criminal Court’s establishment of the Technology Crime Division, which has been operating since April 1, 2024. Its purpose is to address criminal offenses that occur through electronic means, which should then be handled in an effective and prompt manner by judges who have expertise on technological crimes. In addition, several current measures to combat technology crime, including section 20(3) of the CCA, require court orders for the prevention of electronic criminal offenses or online infringement. The Technology Crime Division has the jurisdiction to consider and grant these orders, which will help expedite the approval process and ensure review by specialized judges. Scope of the Technology Crime Division The announcement of the establishment of the Technology Crime Division within the Criminal Court was published in the Government Gazette on March 18, 2024, with operations commencing on April 1, 2024. The Technology Crime Division is empowered to: Consider and adjudicate technology crime cases, except cases falling
Read More