Vietnam Accelerates Foreign Investment Attraction with International Financial Centre Initiative

Vietnam is accelerating its efforts to attract foreign investment by advancing legal frameworks for the establishment of the Vietnam International Financial Centre (VIFC). The VIFC aims to focus on building market infrastructure needed to bridge the gap between large investment pledges and bankable projects. Dominic Scriven, Chairman and Founder of Dragon Capital, stated that legal clarity, consistency, and predictability are essential for strengthening investor confidence, enabling long-term business planning, and encouraging firm capital commitments to Vietnam. The draft Urban Development Law, expected to be passed by the National Assembly on August 24, 2026, will further codify mechanisms for the VIFC, creating an additional legal foundation for the new model. Vietnam views the shift from traditional growth models to reliance on technology and innovation not as an option, but as an imperative of the times. This perspective is underscored by Vietnam's total import-export turnover reaching a record high of $770.14 billion in the first eight months of 2026, up 28.7% year-on-year. Notably, while the number of new FDI projects rose only 9.4%, their registered capital surged 96.8%, indicating a significant increase in average project size and stronger initial investor commitment. Concurrently, Vietnam prioritizes simplifying administrative procedures and business conditions, aiming to shift from pre-licence inspection to post-licence inspection based on risk management, while strengthening real-time, data-driven oversight. This is also crucial for Petrovietnam to play a leading role in new energy development and bolster investor confidence. In the agricultural sector, an online agricultural wholesale market to expand trade links with Singapore is expected to become operational by the end of September 2026. Vietnam's fruit and vegetable exports have grown strongly in recent years, projected to surpass $10 billion in 2026. Durian exports alone generated $1.95 billion from January to August 2026, with 95% going to China. Infrastructure investment supporting economic growth is also advancing. The Climate Adaptation Through Irrigation Modernisation Project will directly benefit approximately 295,500 people by modernizing seven irrigation systems and improving water management to help farmers cope with drought, shifting rainfall patterns, and growing competition for water resources. Vietnam's economic growth is proceeding within the framework of a socialist-oriented market economy under a one-party system. This system prioritizes economic development while emphasizing social stability and state leadership. The establishment of the VIFC is part of this economic development strategy, aiming to revitalize the domestic economy while deepening international cooperation. Source: VietnamPlus English