Ho Chi Minh City or Da Nang international financial center: Which offers better incentive policies?

Vietnam is currently in the process of developing the legal framework for an International Financial Center (IFC) under the model of “one center, two destinations” located in Ho Chi Minh City and Da Nang, with the aim of becoming a large-scale financial hub in the region and globally.

Both locations are expected to benefit from specific incentive policies; however, each has its own advantages and policy orientations. As a result, determining which location offers “better incentives” requires consideration from multiple perspectives.

1. Common incentive policies applicable to both locations

The International Financial Centers in both Ho Chi Minh City and Da Nang are expected to be governed by a strong preferential legal framework, including:

Attractive corporate tax incentives

Preferential corporate income tax (CIT): Priority projects may enjoy a CIT rate of 10% for up to 30 years, together with tax exemption and reduction periods applied in different phases.

Personal income tax exemptions/reductions

Foreign experts, managers, and investors working within the IFC may be exempt from personal income tax until 2030.

Preferential land-use rights and flexible mechanisms

Projects located within the international financial zone may be granted long-term land leases (up to 70 years) and benefit from more streamlined investment procedures.

Foreign exchange and international transaction benefits

Enterprises operating within the IFC may conduct transactions in foreign currencies, enjoy greater flexibility in capital transfers, and develop new financial trading platforms.

=> Overall, the common incentive policies applicable to both locations are highly competitive, aiming to attract investment capital, international experts, and promote the development of Vietnam’s financial market.

2. Ho Chi Minh City: A traditional financial center with comprehensive policies

Role and orientation

Ho Chi Minh City is positioned as Vietnam’s leading financial center, supported by its experience, scale, and existing financial ecosystem, including banking, capital markets, and financial services.

Policy advantages

• Priority development of capital markets, banking, and fintech: Policies are expected to focus on promoting transactions, liquidity, and sophisticated financial products.
• Enhanced regulatory sandbox mechanisms: Allowing the testing of new financial technologies under close yet more flexible supervision.

=> With its existing scale and infrastructure, Ho Chi Minh City has an advantage in implementing comprehensive and long-term incentive policies, helping attract major global financial institutions.

3. Da Nang: An emerging center with flexible and specialized policies

Role and orientation

Da Nang is oriented toward developing a financial center with distinct strengths, complementing Ho Chi Minh City rather than competing directly with it.

Policies focusing on local advantages

• Maritime finance and logistics: Da Nang can leverage its seaports and strategic location to develop financial services related to international trade.
• Green finance and fintech: Incentive policies are oriented toward creating a favorable environment for fintech, green finance, carbon credits, and new financial market products.

=> Da Nang has the opportunity to attract more flexible, innovative, and specialized projects thanks to its priority policies for emerging sectors and its linkage with free trade zones.

See also: Why are more and more Australians choosing Da Nang to live, work, and invest?

4. Overall comparison: Which location offers better incentives?

In summary:

• If you are a large financial institution focusing on capital markets, banking, and traditional financial transactions, Ho Chi Minh City offers stronger overall policy advantages and an established operating environment.
• If you are a fintech start-up, green finance enterprise, or a project in emerging specialized sectors, Da Nang offers advantages through its flexible policies, niche focus, and innovation-driven approach.

It cannot be definitively concluded that either Ho Chi Minh City or Da Nang offers universally “better” incentive policies, as each location is designed to serve different strategic objectives within Vietnam’s overall international financial center development strategy.

• Ho Chi Minh City is well suited for large-scale financial investors and traditional capital market products.
• Da Nang is attractive to projects involving financial innovation, fintech, green finance, and international trade linkages.

The choice of the most suitable location for investment and incentives ultimately depends on your business objectives, type of operations, and long-term development strategy.