With 438/447 delegates participating in the vote, on the morning of June 27, the National Assembly passed the Resolution on the International Financial Center (TTTCQT) in Vietnam. The Resolution takes effect from September 1.
Vietnam aims to establish a commercial center in 2025, located in Ho Chi Minh City and Da Nang. By 2035, Vietnam's financial markets will be in the group of 75 leading centers in the world and top 20 to 2045.
This TTTCQT is oriented to develop separate products, promoting the strengths of each city.
The Bank in Ho Chi Minh City will focus on developing capital markets, banking, currency markets, testing mechanisms (sandbox) for fintech, innovation in the financial sector as well as establishing specialized exchanges and new trading platforms.
In Da Nang, the Central Bank will develop green finance, apply financial technology, digital services... Da Nang will also experiment with controlling digital assets, coins, payments and attracting investment funds, bribes, and small and medium-sized fund management companies.
Ho Chi Minh City and Da Nang have prepared human resources, facilities, infrastructure and promoted investment with strategic and financial investors to build and operate the TTTCQT.
The National Assembly Resolution also stipulates many specific policies to develop the digital economy in Vietnam, focusing on foreign exchange, banking activities, tax incentives, and developing capital markets, finance, land, and labor.
According to the resolution approved by the National Assembly, investment projects in the TTTCQT in priority areas are allocated and leased land for a maximum of 70 years; other areas have a land use term of no more than 50 years.
Foreigners working at the Central Investment Agency are exempt from personal income tax until the end of 2030.
New investment projects in priority areas will apply a corporate income tax rate of 10% for 30 years, with a maximum corporate income tax exemption of 4 years and a 50% reduction in taxes payable for the next 9 years.
For projects not in priority areas, the resolution clearly states that the corporate income tax rate is 15% for 15 years, with a maximum tax exemption of 2 years and a 50% reduction in taxes payable for the next 4 years.
The National Assembly in this resolution also clearly stipulates the mechanism for dispute resolution in investment and business, also in the direction that the parties are allowed to use dispute resolution methods according to Vietnamese law.
In addition, they can resolve disputes at foreign and international arbitration houses; international arbitration centers under the Central arbitration Commission; Vietnamese arbitration houses and foreign and Vietnamese courts.
The Resolution stipulates the waiving of the right to request the Court to cancel the decision to recognize the judgment to the International Referee Center under the TTTCQT, which is the subject established under this Resolution.
For other arbitration centers outside the TTTCQT, they will operate under the Law on Commercial Arbitration, not subject to the regulation of the resolution.
