VNG Chairman Le Hong Minh has proposed a special model for Ho Chi Minh City’s global financial center, suggesting it operate similarly to an “export processing zone” with a unique legal framework tailored for companies targeting global markets.

Ho Chi Minh City aims to attract high-tech enterprises

Speaking at the March 29 seminar “Enterprises accompanying the city in infrastructure development 2025,” several business leaders made proposals to Ho Chi Minh City’s government.

Vice Chairman of the Ho Chi Minh City People’s Committee Vo Van Hoan shared that the city is working on numerous new development projects, including a railway network, the Can Gio International Port, an international financial center in Thu Thiem, and a park project in Cu Chi. He emphasized the city’s desire to attract businesses focused on applied and high-tech innovation.

Also at the event, Le Thi Thu Thuy, Vice Chairwoman of Vingroup, proposed policies for establishing low-emission zones and expanding electric bus services in public transport.

In response, Vo Van Hoan welcomed the proposal and urged Vingroup to accelerate its collaboration with the city, including building charging stations and converting vehicles. He added that Vingroup is investing significantly in Can Gio and envisions the area becoming accessible only to electric vehicles, with all transport within its forests running on electricity.

Proposing a separate legal framework for a global financial hub

During the seminar, VNG Chairman Le Hong Minh outlined a vision to position Ho Chi Minh City as a global financial hub - a realistic and essential development opportunity for both the city and the country.

Using VNG’s own story as an example, Minh reflected on the company's journey from a five-person startup in Ho Chi Minh City to a leading Vietnamese tech enterprise with 4,000 employees across 12 offices in Asia.

According to Minh, Ho Chi Minh City must craft a clear and distinctive positioning strategy rather than directly competing with financial centers like Singapore. Instead, the city should complement and collaborate with such hubs.

“To align and cooperate effectively with Singapore, we need to adopt their strengths: serving regional and global markets, building a business-friendly environment with clear regulations, and establishing an efficient legal framework,” Minh said.

He noted that Ho Chi Minh City enjoys unique advantages. First is its abundant and dynamic tech talent pool. Vietnam graduates over 50,000 students in technology-related fields each year, grounded in strong mathematics education - making it an ideal workforce for developing fintech and financial analytics services.

Second is the city’s labor cost advantage. Average salaries in finance in Ho Chi Minh City range from $20,000 to $30,000 per year - just one-quarter of Singapore’s $80,000 to $120,000 range. This advantage is expected to remain for the next 15–20 years, ensuring sustainable competitiveness.

Geographically, the city sits at a strategic gateway to Vietnam’s 100-million-strong consumer market and connects naturally to East, South, and Southeast Asia.

“To realize this vision, I propose a breakthrough model: the Ho Chi Minh City Global Financial Zone - an exclusive area governed by its own legal framework, operating like a special export processing zone for globally oriented firms,” Minh said.

Companies in this zone would be treated as foreign entities not operating in the Vietnamese market and would be exempt from many of the country’s standard regulations. However, to implement such a model, a distinct legal structure must be designed in line with global best practices, supporting open and business-friendly policies.

He also suggested the establishment of an international arbitration center, adoption of English as the official business language, and the introduction of special tax, labor, and licensing procedures for the zone.

Minh emphasized that efficient governance is a critical success factor. A highly autonomous, one-stop management agency should be formed to handle all administrative procedures related to the financial center. This agency would be supported by an international advisory board comprising global financial leaders to ensure alignment with international norms.

In addition, VNG’s chairman proposed strategies to attract global talent, including favorable visa and work permit regimes for international financial experts, long-term personal income tax incentives, and educational partnerships with top universities. This should be complemented by the development of world-class infrastructure, a full-service support ecosystem, and enhanced quality of life with international amenities.

“With this strategic vision, Ho Chi Minh City can become the engine of financial innovation in Southeast Asia, creating over 100,000 high-quality jobs and setting a new model for special economic zones that leverage Vietnam’s unique strengths. By building an innovative legal framework, attracting global talent, and effectively utilizing our young workforce, we can place Ho Chi Minh City on the global financial map,” Minh concluded.

In response, Vice Chairman Vo Van Hoan affirmed that the central government and ministries are currently developing a special legal framework for the international financial center, treating it as a distinct zone with its own policies and governance mechanisms.

Thai Khang