Da Nang is ready to become an international financial center.

Along with possessing distinct structural advantages and favorable infrastructure, Da Nang has prepared conditions for the operation of the International Financial Center in Vietnam.

Leveraging Da Nang’s Unique Advantages

Alongside Ho Chi Minh City, Da Nang has been selected to develop an international financial center (IFC) in Vietnam thanks to its distinctive advantages, promising a differentiated and competitive position compared to other financial hubs around the world.

Assessing Da Nang’s role in Vietnam’s strategy to build an international financial center, Richard McClellan – Global Ambassador of Terne Holdings, former Country Director of the Tony Blair Institute, and long-time consultant at McKinsey & Company, one of the world’s three largest strategic consulting firms – not only posed the question “Why Da Nang?” but also emphasized an even more important one: “How can Da Nang realize that role?”

Da Nang holds unique structural advantages as the center of the East–West Economic Corridor. It serves as a key gateway connecting Vietnam with Laos, Thailand, and Myanmar through road and rail networks. It is also the only major coastal city along this corridor, offering strong potential to become the financial and logistics gateway for the entire Greater Mekong Subregion (GMS).

 

Da Nang has already been equipped with rare infrastructure foundations, including the Lien Chieu deep-water port, an expanding international airport, the Da Nang Hi-Tech Park, and a planned free-trade zone currently under development.

Da Nang has been developing rare infrastructure foundations—seen only outside Hanoi and Ho Chi Minh City—including the Lien Chieu deep-water port, an expanding international airport, the Da Nang Hi-Tech Park, and a planned free-trade zone currently under development. All of these elements are closely connected to trade, finance, and innovation.

Moreover, Da Nang possesses a high-quality workforce in technology, finance, and international business. The city offers a reliable labor pool for mid- to high-level financial services, while labor costs remain lower than in Hanoi and Ho Chi Minh City, creating a competitive advantage for new businesses.

Notably, unlike mega cities, Da Nang still retains flexible planning capacity, abundant land for development, and a dynamic local government with experience in implementing reforms quickly—making it particularly suitable for pilot models or special regulatory frameworks.

Furthermore, Da Nang can play a catalytic role in expanding the international financial center strategy to the rest of Vietnam, particularly to the 14 central provinces, which have long lacked adequate access to financial institutions in the north or the south. For national policies to generate nationwide impact, nationwide connectivity is essential.

Analyzing Da Nang’s distinctive advantages, Richard McClellan affirmed: “If Vietnam wants to build a globally competitive international financial center, we need to view the IFC not as a single geographic zone, but as a unified operating system. In that model, Da Nang does not compete with Ho Chi Minh City, and vice versa. Vietnam can absolutely consider establishing two centers or one international financial center operating across two locations, enabling each to maximize its strengths while complementing each other.”

Ready for the Operation of the International Financial Center

Speaking about the international financial center, Da Nang Party Secretary Nguyen Van Quang noted that while this is not a new concept internationally, it is a very new and highly challenging issue for Vietnam. The challenge lies in ensuring that operations meet international norms and standards while remaining compatible with Vietnamese laws.

He stated, “Whether two separate international financial centers or one international financial center operating in two distinct locations—Da Nang and Ho Chi Minh City—both would play an important role in diversifying the investment environment, attracting financial institutions and investors, and enhancing the ability to limit and manage risks.”

He added that alongside efforts to advise and propose policy mechanisms, Da Nang has prepared the necessary conditions, ecosystems, and infrastructures—both hard and soft—to be fully ready for the operation of the international financial center.

The Standing Committee of the Da Nang Party Committee has agreed in principle to proceed with the immediate use of a 22-storey building in the Software Park No. 2 to meet the initial operational needs of Vietnam’s International Financial Center in Da Nang.

Regarding land, to immediately meet the operational needs of Vietnam’s International Financial Center (IFC) in Da Nang after the Government issues the establishment decree, the Standing Committee of the Da Nang Party Committee has agreed in principle to study the immediate use of a 22-storey building in Software Park No. 2, with a total floor area of over 27,000 m².

In addition, land plots near the coast, covering nearly 18 hectares, have been planned and allocated to construct the Vietnam International Financial Center in Da Nang to meet international standards. In the long term, the Da Nang Industrial Park in the new Son Tra ward, spanning 62 hectares, will be converted into a financial district.

Regarding infrastructure planning, the city currently operates six data centers with a total capacity of nearly 500 racks. Most recently, on March 27, 2025, construction commenced on a new data center with 100 racks in its first phase.

Da Nang has also set a policy to attract further investment in Tier III-standard data centers, 5G coverage, new submarine cable landing stations with a cable bandwidth of 90 Tbps, and innovative space projects.

Simultaneously, the city is researching and proposing component projects in information technology, transport infrastructure, and technical infrastructure to serve Vietnam’s IFC in Da Nang within the medium-term public investment plan for 2026–2030. Coordination with investors and organizations is being undertaken to ensure operational readiness of the IFC in Da Nang upon launch.

Da Nang will also mobilize maximum resources from private investors, foreign-invested enterprises, and state budget funds to invest in IT infrastructure, databases, energy supply systems, and the development of technical infrastructure, connected transport infrastructure, and modern social infrastructure in line with a smart city model. The initial proposed investment is approximately USD 2 billion, including around VND 10 trillion from the state budget.

The city is actively preparing a high-quality workforce. Initially, a Task Force for studying and developing policies for the IFC in Da Nang has been established with 26 members. Ten civil servants and officials who graduated from foreign institutions in finance, banking, and law have been selected to meet language and professional standards and will be sent for training and internships at major international financial centers such as Singapore, London, and Hong Kong.

Three training courses on international financial center knowledge have been organized in Da Nang for over 300 officers and staff of governmental agencies and local management units. Personnel have been selected to form a preparatory committee for establishing the Vietnam IFC Executive Agency in Da Nang and to liaise with executives from major international financial centers and financial institutions to participate in management, operation, and advisory roles once the agency is established.

In the long term, the city will proactively coordinate with Da Nang University and other universities and educational institutions to research and develop a comprehensive training program, linking and training high-quality human resources to serve the IFC.

At the same time, social resources are being mobilized to organize programs to attract, train, and develop human resources to build and develop Vietnam’s IFC in Da Nang.

Additionally, Da Nang is carrying out investment promotion and cooperation activities with domestic and international partners, providing policy consultations, and strengthening efforts to attract investment in both hard and soft infrastructure at the IFC, connected with the Da Nang Free Trade Zone and other key city projects.

In terms of investment promotion, Da Nang has actively engaged with domestic and international organizations, financial institutions, and major investment funds. Memoranda of understanding have been signed with six partners to collaborate on research, human resource training, and investment attraction for the development of Vietnam’s IFC in Da Nang.

Da Nang plans to continue discussions and collaboration with financial partners, domestic and international institutions, to implement and sign cooperation agreements, promote the establishment of international financial research centers, fintech, and blockchain hubs to provide professional and technical support, as well as advise on mechanisms and policies for the development of finance, fintech, and financial services.

Prime Minister Appointed as Head of the Steering Committee for the Regional and International Financial Center in Vietnam On May 20, 2025, Prime Minister Pham Minh Chinh signed Decision No. 981/QD-TTg approving the list of members of the Steering Committee for the Regional and International Financial Center in Vietnam. Accordingly, Prime Minister Pham Minh Chinh will serve as the Head of the Steering Committee. The Deputy Heads include: Standing Deputy Prime Minister Nguyen Hoa Binh (Permanent Deputy Head); Ho Chi Minh City Party Secretary Nguyen Van Nen; Minister of Finance Nguyen Van Thang; Governor of the State Bank of Vietnam Nguyen Thi Hong; and Da Nang Party Secretary Nguyen Van Quang.

Developing a Single International Financial Center in Vietnam, Operating Across Two Cities

At a hybrid in-person and online conference on drafting the National Assembly Resolution on Vietnam’s International Financial Center held on the morning of May 20, the concept of developing “a single international financial center operating across two different locations” received strong support from many experts.

The CEO of the World Alliance of International Financial Centers (WAIFC) emphasized that, alongside hard physical infrastructure, Vietnam must pay particular attention to building software and digital infrastructure to ensure the smooth operation of the international financial center in both Ho Chi Minh City and Da Nang once these centers become operational. Equally important, Vietnam must carefully plan and prepare a skilled workforce to avoid fragmented, inconsistent, or poorly coordinated investments.

Drawing on the experience and operational models of modern international financial centers in other countries, especially Dubai, Mr. Andreas Baumgartner, CEO and founder of The Metis Institute, recommended that Vietnam could develop one international financial center operating in both Da Nang and Ho Chi Minh City. He noted that this approach is significant for unified management of the center while also ensuring the distinct advantages and operational independence of each location within a single international financial center.

Standing Deputy Prime Minister Nguyen Hoa Binh Announces Direction to Develop a Single International Financial Center in Vietnam Operating Across Two Cities

Standing Deputy Prime Minister Nguyen Hoa Binh stated that the orientation and policy direction will be to develop one international financial center in Vietnam, but it will operate in two cities: Da Nang and Ho Chi Minh City.

At the conference, Standing Deputy Prime Minister Nguyen Hoa Binh stated that alongside completing the mechanisms and policies, the cities of Da Nang and Ho Chi Minh City are actively preparing both hard and soft infrastructure in a highly coordinated manner. In parallel, they are promoting workforce training, investment promotion, and attraction activities to ensure readiness for the operation of the international financial center (IFC) and to secure global connectivity once Vietnam’s IFC officially begins operations.

The Standing Deputy Prime Minister emphasized that the orientation and policy direction will be to develop one international financial center in Vietnam, but it will operate across two cities: Ho Chi Minh City and Da Nang.

The Vietnamese Government is committed to establishing a breakthrough legal framework to maximize Vietnam’s advantages, while complying with international law and standards. It aims to encourage innovation, ensure specialized and attractive policies for investors, balance the interests of the State, investors, and citizens, and implement steps appropriate to Vietnam’s governance and management capacity.

In developing the mechanisms, policies, and legal framework for the IFC, careful study and adaptation of international laws, practices, and standards will be conducted—not merely mechanical or direct copying—but with selective choices suitable to Vietnam’s specific conditions.

Regarding legal infrastructure, the Government will first focus on supplementing and finalizing the National Assembly’s Resolution to submit for review and approval. Based on this Resolution, the Government will issue a series of decrees with superior, open policies offering numerous priorities, incentives, and support—particularly regarding customs, infrastructure, immigration, residence, and labor—for investors participating in the IFC in Vietnam.

During the upcoming 9th session, the National Assembly is expected to discuss and approve the draft Resolution on Vietnam’s international financial center. The adoption of this Resolution will mark an important step in creating the legal framework for developing the IFC in Vietnam and will serve as a crucial foundation for connecting Vietnam to the global economy, providing a pathway for accelerated development in the next phase.

By Hoang Phan – Thanh Nguyen