7 Vietnamese Banks to Set Up Subsidiaries at HCMC International Financial Center; Foreign Banks Face Hurdles

Overview

Seven Vietnamese banks have approved plans to establish wholly-owned subsidiary banks within the Ho Chi Minh City International Financial Center (VIFC-HCMC), which officially launched in February 2026. However, major foreign banks from the US, China, and Japan face a regulatory hurdle: a requirement that parent banks hold an international credit rating of AA or higher, a threshold currently met only by JPMorgan. This development is significant for the banking sector and the broader ambition to position Vietnam as a regional financial hub.

Key Facts

• Seven Vietnamese banks approved wholly-owned subsidiary banks at VIFC-HCMC: Vietcombank (VCB), HDBank (HDB), SHB (SHB), MB (MBB), TPBank (TPB), LPBank (LPB), and Nam A Bank (NAB).
• VietinBank is still studying the plan.
• Foreign banks including Bank of China, Bank of America, and MUFG Bank (Mitsubishi UFJ) have expressed interest but are blocked by the AA rating requirement.
• Only JPMorgan currently meets the AA rating threshold among interested foreign banks.
• The legal framework is based on National Assembly Resolution No. 222/2025/QH15 and eight guiding decrees.
• The information was disclosed by Assoc. Prof. Dr. Nguyen Huu Huan, Vice Chairman of the VIFC-HCMC Executive Agency, at a HUBA conference on May 16, 2026.
• Securities companies HSC and DNSE also plan to establish entities within the center.

What Happened

At the 88th HUBA Business Coffee program on May 16, 2026, Assoc. Prof. Dr. Nguyen Huu Huan, Vice Chairman of the VIFC-HCMC Executive Agency, provided an update on the center’s progress. Since its official launch in February 2026, VIFC-HCMC is still in a preparatory phase awaiting approval of its operating regulations. The legal foundation has been established through Resolution 222/2025/QH15 and eight guiding decrees.

Huan revealed that during a recent investment promotion trip abroad, many leading foreign financial institutions from the US, China, and Japan expressed strong interest in establishing a presence at VIFC-HCMC. However, current regulations require that foreign banks seeking to set up 100% foreign-owned commercial banks or branches within the center must have a parent bank with an international credit rating of AA or higher. This requirement effectively excludes major banks such as Bank of China, Bank of America, and MUFG Bank, which have lower ratings. Huan recommended that the government consider adjusting this regulation to attract a broader range of international banks and diversify capital sources.

Market Context

On May 16, 2026, the affected Vietnamese banks traded slightly lower: VCB closed at VND 60,700 (-0.49%), HDB at VND 27,550 (-0.90%), SHB at VND 13,900 (-0.71%), and MBB at VND 25,650 (-0.77%). The banking sector has been under pressure amid global uncertainty, but the VIFC-HCMC initiative represents a long-term growth catalyst for these banks, potentially expanding their international operations and revenue streams. All seven banks are listed on HOSE or HNX.

Strategic Significance

For the seven Vietnamese banks, establishing subsidiaries at VIFC-HCMC offers a strategic opportunity to access international capital markets, offer cross-border services, and compete with foreign peers on home turf. The center aims to position Ho Chi Minh City as a global financial hub, similar to Singapore or Dubai. However, the restrictive AA rating requirement for foreign banks could limit the center’s international diversity and depth, potentially reducing its competitiveness. If the government relaxes this rule, it could attract a wider array of global banks, enhancing liquidity and service offerings. For investors, the success of VIFC-HCMC will depend on regulatory adjustments and the pace of operational readiness.

What to Watch

• Government decision on adjusting the AA rating requirement for foreign banks at VIFC-HCMC.
• Approval of VIFC-HCMC’s operating regulations and timeline for full operation.
• Progress of VietinBank’s study on establishing a subsidiary.
• Q2 2026 earnings reports from the seven banks, which may include initial costs or guidance related to the subsidiaries.
• Announcements from foreign banks (e.g., JPMorgan, Bank of China) regarding concrete plans to enter VIFC-HCMC.