Robust dispute resolution framework key to Vietnam's IFC ambitions

The development strategy for VIFC-HCMC envisions a comprehensive financial ecosystem encompassing green finance, carbon credits, financial technology (fintech), blockchain technology, digital assets, digital banking and other innovative business models. These highly internationalised sectors involve complex cross-border transactions and sophisticated legal structures.

Hanoi (VNA) - As Vietnam develops its International Financial Centre in Ho Chi Minh City (VIFC-HCMC), establishing a modern, transparent and internationally aligned dispute resolution system is emerging as a key factor in attracting global capital, alongside financial infrastructure, technology and investment incentives.

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Financial buildings in downtown Ho Chi Minh City along the Saigon River. (Photo: VNA)

Hoang Huy Truong, Head of the Legal Affairs Division of the VIFC-HCMC Executive Agency, said the attractiveness and long-term sustainability of a financial centre are ultimately determined by “institutional trust”. As VIFC-HCMC aims to become a gateway connecting international capital flows with Vietnam, dispute resolution infrastructure is regarded as a critical component. Mechanisms such as specialised courts and arbitration centres could be employed to handle disputes.

The development strategy for VIFC-HCMC envisions a comprehensive financial ecosystem encompassing green finance, carbon credits, financial technology (fintech), blockchain technology, digital assets, digital banking and other innovative business models. These highly internationalised sectors involve complex cross-border transactions and sophisticated legal structures.

According to Truong, investors evaluate not only profit potential but also key legal considerations, including where disputes will be resolved, which language and legal framework will apply, and whether rulings can be effectively enforced. Experience shows that while markets can withstand volatility, uncertainty or a lack of transparency in dispute resolution mechanisms significantly increases risk costs and undermines investor confidence. As a result, dispute resolution systems are increasingly viewed as a form of strategic “soft infrastructure”.

Vietnam’s legal framework for the IFC is gradually taking shape under the National Assembly’s Resolution No. 222/2025/QH15 on IFC in Vietnam, together with regulations governing finance, banking, labour, immigration, arbitration, land and commodity transactions.

A notable feature is the parallel development of specialised dispute resolution institutions alongside the financial centre itself. Parties will be able to choose between specialised courts within the financial centre or international arbitration institutions. They will also have the option to apply foreign laws, international practices, conduct proceedings in English and select international, foreign or Vietnamese arbitrators. These provisions are expected to bring Vietnam’s IFC closer to the operational standards of leading financial hubs in the region.

Prof. Dr. Le Hong Hanh, President of the Vietnam International Arbitration Centre (VIAC), said that building a successful international financial centre requires not only advanced financial and technological infrastructure but also a transparent legal framework aligned with international practices.

Amid intensifying global competition, a commitment to efficient, investor-friendly and predictable dispute resolution mechanisms will be a decisive factor in enhancing the competitiveness of the financial centre.

Phan Duc Trung, Chairman of the Vietnam Blockchain and Digital Assets Association, noted that without specialised mediation, arbitration and dispute resolution mechanisms in place from the outset, disputes could become increasingly complex as emerging sectors expand. The recent launch of the VIAC Panel of FinTech & Digital Economy Dispute Specialists in Ho Chi Minh City is considered an important step in developing the legal expertise needed to support the IFC’s ecosystem.

Nguyen Khanh Ngoc, President of the Vietnam Lawyers Association, stressed that the establishment of Vietnam’s IFC must go hand in hand with a clear legal framework and reliable dispute resolution mechanisms to strengthen investor confidence and ensure the sustainable development of the business environment.

He noted that arbitration and other alternative dispute resolution methods offer significant advantages through their flexibility, confidentiality and specialised expertise, making them particularly well suited to the needs of modern financial transactions.

For Ho Chi Minh City, enhancing its international arbitration framework is about more than resolving disputes. It represents a commitment to creating a safe, transparent and internationally recognised investment environment. A modern, professional and internationally oriented arbitration system is expected to improve capital mobilisation, strengthen market attractiveness and provide a solid foundation for Vietnam’s IFC to establish its position on the global financial map./.

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