Combining an international financial center with a free trade zone will help Ho Chi Minh City create a distinct competitive advantage to attract foreign capital, according to experts.
Comments were made by Mr. Niraj Vedwa, member of the Board of Directors of XacBank (Mongolia) at the forum “Capital flows without borders”, within the framework of the Vietnam Innovation Summit (VIS 2026), October 14.
According to him, Ho Chi Minh City can take advantage of its manufacturing strengths, FDI capital flows and its position connecting the ASEAN supply chain to become a new generation financial center. This will help the city move from “investment destination” to “investment organizer”, through combining the International Financial Center (VIFC) and Free Trade Zone (FTZ).
“VIFC and FTZ can become two sides of the same capital attraction dynamic, combining financial infrastructure with trade to create a distinct advantage,” he said.
VIFC brings together asset managers, banks, investment funds, foreign exchange traders, family offices, green finance, and financial technology. Meanwhile, FTZ plays a driving force in real economic development through logistics, production and supply chain systems, and high technology.
“Development opportunities lie at the intersection and connection between capital, trade, data and investment projects,” said Mr. Niraj Vedwa.
In particular, capital from VIFC funds infrastructure, businesses and supply chains in the FTZ. In contrast, trade, logistics and trade finance activities at FTZ create demand for financial services, risk prevention and foreign exchange at VIFC.
In addition, transparent trade and supply chain data infrastructure from the free trade zone serves analysis, risk valuation and investment in the financial center. This combination also creates new projects in the fields of logistics and transportation infrastructure to attract investment funds.
Mr. Niraj Vedwa, Member of the Board of Directors of Xacbank at the forum on the morning of October 14. Image: VIS 2026
Ho Chi Minh City is one of two locations where the Vietnam International Finance Center is located according to the “one center, two destinations” model. In the latest evaluation period, the locality increased 17 places in the global financial center ranking, ranking 67th. At the end of last year, Ho Chi Minh City People’s Council approved the establishment of Cai Mep Ha free trade zone with a scale of about 3,800 hectares and oriented to expand the Can Gio, An Binh, and Bau Bang subdivisions in the future.
Mr. Niraj Vedwa believes that the city should clearly identify 3-4 global investors or institutions that want to attract and connect 10-20 international banks, investment funds, and large asset management companies to introduce values and products.
He recommended that the city prioritize forming a list of projects eligible to attract investment in the fields of infrastructure, logistics, seaports and projects that can mobilize private capital. Along with that, Ho Chi Minh City should continue to improve the operating infrastructure for the international financial and trade market, including legal framework, tax policy, custody services, and investor reception process on digital platforms.
In this aspect, Mr. Nguyen Duy Hieu, Head of Legal Division EY Law Vietnam, said that building a successful financial center depends on capital, technology and depends on institutional and legal quality.
According to him, foreign investors are often concerned about the cost of legal risks and the ability to predict the outcome when a dispute occurs. Mr. Hieu proposed 5 strategic priorities including clear regulations, sandbox management, investment capital protection, practical dispute resolution mechanisms and international legal connectivity.
“Building a building or an office is very easy, the core competitive advantage of a financial center lies in transparency, clear licensing rules and adequate supervision mechanisms,” he said.
The economic engine attracted 17.8 billion USD of FDI capital in the first 9 months of the year, 4.2 times higher than the same period in 2025. The International Financial Center in Ho Chi Minh City (VIFC-HCMC) has promoted cooperation with the London Stock Exchange, supported the connection of 325 million USD of educational projects and worked with TikTok on plans to expand operations in the fields of digital commerce, logistics, and digital payment.
Mr. Tran Trong Tuyen, Deputy Director of Ho Chi Minh City Department of Science and Technology, commented that macroeconomic shifts in the global economy are fundamentally changing the structure of capital flows, management methods and competition standards of countries and businesses.
“Ho Chi Minh City is building a favorable business environment so that high technology and international capital have space to experiment, connect and create economic value,” Mr. Tuyen said at the opening session of VIS 2026.