Ho Chi Minh City is emerging as a new highlight on the global financial map, with rising rankings and strong fintech growth momentum. In this context, a regulatory sandbox is seen as a “policy laboratory”, providing a key foundation for accelerating the development of an international financial centre.

Momentum from rising rankings

According to the Global Financial Centres Index (GFCI 39), Ho Chi Minh City climbed 11 places to rank 84 globally and was identified among centres likely to expand influence within the next two to three years.

The improvement coincides with rapid fintech growth, with the city rising seven positions to 83rd globally. A 2025 StartupBlink report also marked the fourth consecutive year of improvement in its startup ecosystem ranking, with fintech emerging as a leading growth sector. The city now ranks among the world’s top 30 blockchain hubs and second in Southeast Asia.

These gains reflect not only improved positioning but also the opportunity to pursue a distinct development path. As a latecomer, Ho Chi Minh City can adopt emerging financial models more rapidly rather than following traditional trajectories of established financial centres.

In this strategy, the Vietnam International Financial Centre in Ho Chi Minh City (VIFC-HCMC) is being developed on the back of these trends. A core enabling mechanism is the regulatory sandbox, allowing organisations and enterprises to test new technologies, products and business models under controlled conditions where legal frameworks remain incomplete.

Associate Professor Nguyen Huu Huan, Vice Chairman of the VIFC-HCMC executive agency, noted that technology is advancing faster than regulation, with blockchain, artificial intelligence, digital assets and asset tokenisation reshaping global finance. Maintaining purely rule-based management risks widening the gap between innovation and regulation, potentially constraining innovation while weakening risk control.

The sandbox therefore enables controlled experimentation, limited risk-taking and the generation of empirical data to support policymaking, in line with Resolution 222/2025/QH15, which allows VIFC-HCMC to pioneer pilot initiatives contributing to national legal framework development.

International experience shows that successful financial centres such as Singapore, Dubai, the UK and Hong Kong have adopted sandbox mechanisms focused on intelligent, data-driven risk governance rather than deregulation.

According to prof. Huan, the sandbox functions simultaneously as a regulatory tool, an investment attraction mechanism and a driver of national competitiveness. For VIFC-HCMC, it will support strategic pillars including digital finance, digital assets, cross-border payments, real-world asset tokenisation, green finance and carbon markets.

Sandbox design and business expectations

Researchers from the University of Economics Ho Chi Minh City have proposed a sandbox model targeting high value-added sectors while maintaining strict risk controls.

Cross-border payments are prioritised to improve transaction speed and costs while ensuring compliance with foreign exchange management, anti-money laundering requirements and asset protection standards. Transactions must pass through sponsoring banks and meet full traceability requirements.

In digital assets, token-based liquidity mechanisms are cautiously designed for institutional and professional investors, incorporating real-time pricing, lending limits and automated margin controls to manage volatility risks.

Smart contracts are proposed for trade finance processes, particularly letters of credit, to enhance automation and transparency while maintaining final human oversight for legal accountability.

A digital asset banking model focusing on custody, wallet management and asset transfers for institutional clients is also proposed, featuring multi-layer security systems and separation from core banking operations to limit systemic risks.

Real-world asset tokenisation would allow digital representation of ownership rights tied to assets such as real estate, securities and commodities, improving liquidity and capital mobilisation while maintaining safeguards linking tokens to underlying assets.

All pilot models include clear safeguards ensuring supervision, traceability and intervention capability. The sandbox is not a legal exemption zone; regulations on data protection, cybersecurity, anti-money laundering, foreign exchange management and legal responsibility remain fully enforced.

This approach strengthens state governance by generating practical data to narrow the gap between technological innovation and regulation.

From a business perspective, the international financial centre is expected to expand opportunities beyond banking and investment, enabling technology firms to engage more deeply in digital financial services. However, success depends on a synchronised ecosystem where policy, technology and businesses operate in close coordination.

Tran Huy Vu, co-founder of the Kyber Network, emphasised that enterprises need a clear, transparent and consistent legal framework defining operational boundaries. Only with regulatory clarity, he said, can businesses fully leverage technology and contribute effectively to the emerging financial ecosystem at VIFC-HCMC./.VNA