On 27 June 2025, Vietnam’s National Assembly officially passed the resolution on the development of an International Financial Centre (“IFC“) (“Resolution“), with over 93.5% of deputies voting in favour of its establishment. The Resolution includes six chapters and 35 articles and will take effect from 1 September 2025.
One of the most notable features of the Resolution is the introduction of a new arbitration-related mechanism, whereby parties involved in arbitration proceedings at the International Arbitration Centre under the IFC have the option to waive their right to request court annulment of arbitral award recognition. This approach, aligned with international practice, is designed to:
- enhance the enforceability and finality of arbitral awards;
- limit court interference in commercial disputes; and
- strengthen investor protection and promote confidence in Vietnam’s dispute resolution framework.
The Resolution also establishes:
- a dual-centre model for the IFC in Ho Chi Minh City and Da Nang;
- a specialised dispute resolution system, including both a dedicated court and an international arbitration centre, and
- risk-based supervision, a coordinated regulatory framework, and controlled sandbox mechanisms for fintech and financial innovation.
The Vietnamese Government is authorised to issue decrees to address regulatory gaps that may arise during the implementation of the Resolution, following precedents already set by the Law on Government Organisation and other legislative frameworks.
This marks a significant institutional step forward for Vietnam’s legal and financial infrastructure in its strategy to become a regional financial hub.
If you have any queries on the above, please feel free to contact any of our team members.
This Update was authored by Dr. Le Hong Phuc.
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