Key takeaways
1. The IFC's key features and incentive policies
The IFC will operate under a "one center, two destinations - dual locations" model and will be located in Ho Chi Minh City and Da Nang City. It will comprise the following main functional bodies:
- Executive authority — responsible for overall management and implementation of assigned tasks
- Supervisory authority — in charge of inspection, enforcement and risk prevention
- Dispute resolution authority — including a specialized court and an international arbitration center with jurisdiction over disputes as agreed by the parties
IFC membership is open to organizations and enterprises that meet eligibility criteria, including financial and nonfinancial institutions, consulting firms, investment funds and, notably, fintech and digital asset entities.
Permitted products and services at the IFC include equities, bonds, fund certificates, financial derivatives, fund management, insurance and reinsurance, banking and foreign exchange, green finance, carbon credits, fintech, digital assets, and other offerings as regulated by the government. Dedicated trading platforms are expected to be established for these services.
Incentive policies for IFC members include the following:
- Liberalized foreign exchange mechanisms
- Corporate income tax and personal income tax exemptions/reductions for investment projects within the IFC areas and qualified professionals
- Fast-track procedures for immigration, residence and employment
- Preferential land policies for investment projects within the IFC
2. Fintech in focus
In the fintech domain, the Resolution introduces a controlled testing mechanism ("regulatory sandbox") for a defined period, offering the following incentives:
- Exemptions from certain legal requirements on technical standards, business conditions and licensing procedures will be available for eligible technologies and business models.
- Legal liability waivers for damages to the state caused by objective factors during the trial phase will be considered, with potential compensation support from local budgets for third-party damages.
- Fintech start-ups operating within the IFC may enjoy incentives equivalent to or greater than those offered by the Vietnam National Innovation Center.
- Nonrefundable financial support from local budgets may be available for sandbox projects, subject to local fiscal capacity.
The IFC executive authority will detail the specific timelines and procedures for participating in the sandbox. The government is tasked with implementing the relevant guiding regulations (if needed).
3. Vietnam's evolving sandbox framework
Beyond the Resolution, Vietnam's regulatory sandbox framework is also shaped by several other key legislative instruments. At the National Assembly level, the recently adopted Law on Science, Technology and Innovation ("STI Law") introduces a general legal foundation for regulatory sandboxes, with further implementation and guidance to be provided by the government.
Prior to the STI Law, in April 2025, the government issued Decree No. 94/2025/ND-CP (effective from 1 July 2025), commonly referred to as the Fintech Sandbox Decree. It establishes a controlled testing environment for innovative financial services in the banking sector. In addition, in late 2024, the National Assembly passed a resolution on a special development mechanism for Da Nang City, empowering local authorities to design and implement sandbox initiatives within the city's jurisdiction.
Looking ahead, the government is expected to issue a pilot resolution on the issuance and trading of crypto assets, which would further expand Vietnam's sandbox ecosystem into the digital asset space.
Conclusion
Vietnam's evolving regulatory sandbox landscape reflects a growing commitment to fostering innovation while maintaining oversight across diverse sectors. With multiple sandbox models now emerging under different legislative instruments and authorities, a key question remains: How will these frameworks interact, overlap or diverge in practice? The coming years will be critical in observing how these sandbox initiatives are deployed, coordinated and potentially harmonized — or whether they will operate in parallel with varying degrees of effectiveness. This unfolding regulatory experiment will offer valuable insights not only for Vietnam but also for other jurisdictions navigating the balance between innovation and regulation.
* * * * *
Tuan Linh Nguyen, Senior Government Affairs Manager, contributed to this legal update.