Vietnam’s newly created International Financial Centre (IFC) will function across Ho Chi Minh City and Da Nang, providing a simplified operating environment for foreign financial institutions, fintech firms, and professional service providers. The framework combines preferential tax treatment with more flexible rules for foreign exchange, accounting, financial innovation, talent mobility and dispute resolution.
The IFC’s benefits apply exclusively to approved participants, projects, and sectors. Access requires licensing, classification, and ongoing compliance with eight decrees issued in December 2025, which implement the legal framework established by Resolution No. 222/2025/QH15, effective from 1 September 2025. While the IFC operates under special provisions, it remains subject to general Vietnamese law in areas where no IFC-specific rules exist.
Six priority sectors unlock tax breaks
Eligibility for the most favourable tax treatment depends on participation in six priority sectors:
- Digital infrastructure, including payment systems and clearing networks;
- Green finance and environmentally sustainable financial products;
- Commodity markets, derivatives trading, and international trade finance;
- Fintech and financial innovation;
- Investment funds and asset management services; and
- Professional support services directly tied to qualifying IFC activities.
Tax classification determines access to corporate income tax (CIT) incentives. Under Decree 324, new projects may qualify for either a 10% or 15% CIT rate, applied from the first year of revenue generation, or targeted exemptions and reductions. If no taxable income arises during the first three revenue years, the incentive period begins in the fourth year. Enterprises must separately track incentivised income or allocate eligible amounts using prescribed revenue or cost ratios. Projects eligible for multiple incentives may select the most advantageous treatment.
Until 31 December 2030, qualifying Vietnamese and foreign managers, experts, scientists and highly skilled professionals may receive a full PIT exemption on salary and wage income earned from work performed within the IFC. Eligibility requires meeting specific position, qualification, and experience criteria-senior titles alone do not guarantee exemption.
The IFC is not a separate customs territory. Goods traded between the IFC and overseas markets remain subject to Vietnam’s customs and import-export tax rules, including preferences available under Vietnam’s international agreements. Import duty exemptions are available for qualifying technical equipment, technology and software that cannot be produced domestically and are imported for IFC information infrastructure, management systems or large data-centre projects. The relevant items must fall within lists issued by the Executive Body based on the competent authority’s list of domestically available goods. Investors must notify the proposed duty-exempt import list and retain the required customs documentation.
Foreign currency rules and financial reporting flexibility
Where multiple incentives apply, participants may choose the most beneficial option. The framework also supports designated foreign currency accounts for specific transactions, including capital contributions, international borrowing, and investment proceeds transfers. These accounts reduce offshore structure reliance but remain subject to banking oversight, anti-money laundering (AML) and counter-terrorism financing (CFT) controls, and reporting requirements.
Members may adopt eligible international accounting standards or generally accepted principles for financial reporting, provided they remain compatible with Vietnamese tax and regulatory filings. This flexibility aims to simplify consolidation for multinational groups and enhance comparability for investors.
A sandbox testing programme permits approved financial innovations—including digital assets and green-finance platforms—to operate under controlled conditions. Participation is not a general exemption but a structured testing mechanism with limits on duration, customer involvement, transaction value, and risk exposure.
Legal and labor reforms for global talent
Labour and immigration rules have been adjusted to facilitate recruitment and retention of international financial specialists, with streamlined work permits and visa processes. Separately, Decree 328 and Law No. 150/2025/QH15 establish a dedicated arbitration and court system for qualifying IFC disputes, offering options for English-language proceedings and, where permitted, the application of foreign law or international commercial practices.
Contracts must explicitly address forum selection, governing law, and arbitration to ensure disputes fall under the IFC’s specialised resolution mechanisms. The framework does not eliminate banking supervision or prudential controls but clarifies administrative procedures for membership, licensing, and regulatory compliance.
Members face ongoing reporting and audit obligations, including periodic submissions to the IFC’s supervisory authority. Non-compliance may lead to the suspension of tax benefits or revocation of membership status. The framework also requires all IFC-related transactions to be documented in accordance with Vietnamese AML and CFT laws, even when conducted through designated foreign currency accounts.
Decree 329 and Circular No. 72/2025/TT-NHNN establish rules for designated foreign currency accounts, which facilitate transactions such as capital contributions, international borrowing, and cross-border investment proceeds. These accounts reduce offshore structure dependence but remain subject to banking supervision, transaction monitoring, and AML/CFT reporting. Members must maintain records of all foreign exchange movements and submit periodic declarations to the State Bank of Vietnam.
