The CityUK: Building the Future - Strengthening the UK-Vietnam Financial Services Partnership
Last month, I met Vietnam’s Deputy Prime Minister Nguyen Hoa Binh at the International Financial Centre Conference in Hanoi, and more recently, Finance Minister Nguyen Van Thang in London. Both meetings reinforced the strong partnership in FPS between the UK and Vietnam and the significant potential for future growth.
Vietnam is at a pivotal moment in its development journey. The country boasts impressive economic growth – 7.5% growth already this year, a young and dynamic population over 100 million people, and government-wide commitment to establishing an international financial centre (IFC) across the cities of Ho Chi Minh City and Da Nang.
These factors position Vietnam as an emerging financial centre within the South-East Asia region. But ambition must be matched with execution. This is where London’s role as the world’s leading international financial centre is pivotal to support this work and provide Vietnam with a credible framework to build upon. Building a competitive IFC requires deep and trusted capital markets, regulatory incentives to promote both domestic and international investment, and a strong legal framework.
Encouragingly, Minister Thang shared that Vietnam is considering adopting English common law for its IFC – a system that underpins many of the world’s most successful financial hubs. English common law can play a key role building confidence among international investors, reducing market risks, and helping reduce the cost of capital. This is a positive step forward and a resounding signal to global investors that Vietnam is implementing key building blocks to develop an internationally operable hub.
Both the City of London Corporation and TheCityUK have been working closely with the Vietnamese government to support its plans to develop an IFC and share key insights from London’s experience. Through numerous working groups and roundtables, the UK-Vietnam partnership has connected UK financial professional services leaders with key Vietnamese figures helping to design the IFC and ensuring it addresses key drivers for investment. It is a great example of how the UK Government and industry are working together with high-growth markets to enable greater two-way trade and investment in a collaborative way.
Vietnam’s edge lies in its strategic ASEAN location, its digitally-savvy population, and the opportunity to lead in sustainable finance. With global focus on the energy transition, Vietnam could establish Ho Chi Minh City or Da Nang as centres for green and transition finance – unlocking investment to fuel both domestic growth and climate resilience. Crucially, the IFC will also allow Vietnam to retain and scale fast-growing companies within its borders rather than offshoring their financing needs elsewhere.
One challenge ahead is talent. London’s own success as a global financial hub has been built over centuries, powered by openness and international expertise. For Vietnam, attracting global firms and deepening educational partnerships, such as those already developing between UK institutions and the British University of Vietnam, will be key. Building a skilled workforce aligned with international standards will take time, but with sustained effort it is achievable.
No financial centre can thrive in isolation. The UK and Vietnam do not approach this relationship as competitors but as partners. There are clear opportunities for collaboration and opportunity for the UK financial professional services sector. As part of my Growth Unleashed mayoral theme, I have been calling for British businesses to jump on planes and bang on doors in dynamic and fast-evolving markets such as Vietnam. There is a great opportunity in capital markets for Vietnamese firms to leverage the depth of London’s exchanges for growth and international expansion. On digital innovation, Vietnam’s tech-savvy population can connect with London’s fintech ecosystem to co-develop solutions for the region and beyond. Sustainable finance is also a key area where London’s expertise in structuring green bonds and transition finance can support Vietnam’s ambitious energy transition.
Rising tides lift all boats. By working together, London and Vietnam can build a financial partnership that strengthens both our economies and contributes to a more resilient, inclusive, and sustainable global financial system.