HCMC’s Climb in GFCI 2025: Milestone or Momentum?

Ho Chi Minh City’s financial centre ranking has become a symbolic indicator of Vietnam’s economic transformation. The city’s rise to 95th place in the Global Financial Centres Index (GFCI 38) reflects both recognition and responsibility. It signals the growing maturity of Vietnam’s capital markets, regulatory ambition, and private sector confidence. Yet the central question remains: is this improvement a milestone marking genuine capability or merely a signal of early momentum?

Understanding the Global Financial Centres Index

The Global Financial Centres Index (GFCI), compiled by the Z/Yen Group, evaluates cities based on business environment, human capital, infrastructure, financial sector development, and reputation. It has become a benchmark for how financial ecosystems compare worldwide. In its 38th edition, released in 2025, Ho Chi Minh City moved up three places to rank 95th with a score of 664—its highest yet. This upward movement, though modest, represents Vietnam’s entry into the competitive dialogue of regional finance hubs.

The index measures not only quantitative indicators but also perception among global finance professionals. A ten-point increase in score reflects growing investor confidence in Vietnam’s policy direction. However, it also highlights the long journey ahead. Regional peers like Kuala Lumpur, Bangkok, and Manila continue to rank higher, and Singapore remains the region’s anchor with deep capital markets and regulatory sophistication. The challenge for Ho Chi Minh City is to convert recognition into substance.

Signals of Progress Beneath the Ranking

Ho Chi Minh City’s improved ranking did not occur in isolation. It reflects policy actions, infrastructure upgrades, and increased engagement from the private sector. The city’s leadership has pursued targeted reforms, including pilot zones for digital banking, bond market restructuring, and gradual liberalisation of foreign participation in capital markets. Together, these efforts contribute to a more credible financial ecosystem.

The establishment of the Ho Chi Minh City International Financial Centre (HCMC IFC) remains central to this strategy. Anchored in Thu Thiem, the IFC aims to serve as a cluster for financial institutions, fintech firms, and service providers. Regulatory adjustments introduced under Resolution 98/2023/QH15 and Decision 81/QĐ-TTg laid the groundwork for differential policy treatment, allowing the city to experiment with incentive mechanisms. The rise in the GFCI ranking, therefore, is an early reflection of institutional groundwork beginning to show results.

Beyond regulation, market sentiment also plays a role. Vietnam’s GDP growth above 6%, stable inflation, and continued inflows of foreign direct investment have strengthened the macro foundation. In parallel, the stock market’s capitalisation exceeded 100% of GDP in mid-2025, supported by growing retail participation and cross-listing interest from regional firms. These trends combine to enhance visibility and confidence in Ho Chi Minh City as a regional capital market gateway.

Momentum or Sustainable Shift?

Ranking improvements often trigger optimism, yet they must be interpreted carefully. In the GFCI, small score changes can cause significant rank shifts, especially in the lower tiers. For Ho Chi Minh City, the key is whether underlying fundamentals justify the optimism. Structural constraints remain: limited financial product diversity, uneven legal enforcement, and a banking sector still dominated by state influence.

Nevertheless, momentum is building in the right direction. Since 2023, the government has advanced a roadmap for developing capital markets in line with the International Financial Centre agenda. New frameworks for corporate bonds, fund management, and derivatives are being refined. Vietnam’s rapid digital adoption—already exceeding 75% smartphone penetration—supports the rise of fintech and digital banking, both critical to deepening the financial system.

These factors suggest that Ho Chi Minh City’s financial centre ranking improvement is not a coincidence. It reflects accumulated reforms and rising investor engagement. The challenge now lies in institutional durability: ensuring that regulatory consistency, transparency, and judicial reliability keep pace with market growth.

Comparing Regional Benchmarks

To gauge progress, it helps to benchmark against regional peers. Bangkok, ranked 99th in 2024, has since slipped marginally as market volatility and slower policy reforms affected investor sentiment. Kuala Lumpur, still ahead of Ho Chi Minh City, benefits from an established Islamic finance ecosystem but faces demographic and cost pressures. Jakarta and Manila show potential but lag on governance and capital market depth. Within this landscape, Ho Chi Minh City’s relative rise stands out as both a regional catch-up and a strategic repositioning.

Singapore remains the dominant regional hub, yet its saturation and cost structure are pushing some functions to secondary cities. Vietnam’s proximity, growth rate, and young workforce position Ho Chi Minh City as a complementary rather than competing centre. The goal is not to replicate Singapore but to capture niche segments—cross-border fintech, regional SME banking, and green capital flows—that align with Vietnam’s economic structure.

Regional investors are already responding. ASEAN funds now include Vietnam-focused allocations, and financial institutions in Bangkok and Manila are exploring branch expansion into Ho Chi Minh City. This interplay of competition and cooperation shapes a more interconnected Southeast Asian financial network, with Vietnam gradually moving from periphery to participant.

Infrastructure and Ecosystem Readiness

A credible financial centre requires more than policy—it demands physical and institutional infrastructure. In this regard, Ho Chi Minh City has accelerated development. The Thu Thiem Financial Centre project integrates Grade A office towers, digital infrastructure, and regulatory support facilities. Alongside, Vietnam’s data localisation policies and rising data centre investment (including projects from Viettel, CMC, and Warburg Pincus) reinforce the technological backbone needed for financial digitisation.

Talent remains another critical factor. The city has launched partnerships with universities and professional bodies to expand training in finance, compliance, and risk management. However, competition for talent across Asia remains intense. To sustain progress, Vietnam must continue improving English proficiency, professional certification, and cross-border mobility frameworks. These steps would make Ho Chi Minh City more attractive to international firms considering relocation or expansion.

Professional services—legal, audit, consulting, and rating agencies—also underpin credibility. The presence of international firms is increasing but still limited relative to regional peers. Expanding this ecosystem will be vital for ensuring that growth in ranking reflects genuine depth rather than optics.

Policy Stability and Investor Confidence

Policy consistency drives confidence. Vietnam’s policymakers have signalled a long-term commitment to transparency and investor protection. Recent measures to enhance corporate governance, enforce disclosure standards, and restructure state-owned banks are seen as steps in the right direction. The central government’s coordination with city authorities ensures that reforms align with national strategy rather than operate in isolation.

Tax incentives, simplified licensing, and fintech sandboxes have improved ease of doing business, especially for foreign investors. Still, challenges persist. Investors continue to cite procedural delays and limited coordination among regulatory agencies. Overcoming these friction points will determine whether Ho Chi Minh City sustains upward movement or stalls at mid-tier status.

What matters most is predictability. As regional competition intensifies, Vietnam’s ability to maintain clear, consistent rules will differentiate it from markets where reforms are either reactive or politicised. Predictability builds trust; trust attracts capital.

The Symbolism of the Ranking

Rankings serve both practical and psychological functions. They shape perception, influence investor decisions, and motivate reform. For Ho Chi Minh City, the move to 95th is a symbolic validation of years of groundwork. It strengthens the city’s credibility when promoting itself as an emerging international financial hub and provides a measurable benchmark for policymakers.

However, symbolism without substance risks complacency. The real test is whether momentum continues beyond recognition. Each ranking improvement should reflect measurable progress in capital market maturity, financial inclusion, and global integration. Without sustained execution, perception gains can fade quickly.

For Lotus Venture and institutional investors observing this evolution, the trendline matters more than the ranking itself. The pace and quality of reforms, coupled with cross-sectoral investment in infrastructure, determine whether Vietnam truly transitions from an aspiring hub to a functioning financial centre.

Strategic Outlook

Ho Chi Minh City’s upward movement in the Global Financial Centres Index marks a pivotal stage in Vietnam’s journey toward financial modernisation. The milestone indicates credibility, but momentum remains fragile. Sustained progress requires focus on three fronts: regulatory execution, ecosystem depth, and international connectivity. If these elements align, the city could move from the 90s into the top 70 by 2028, a level that would signal functional maturity rather than symbolic inclusion.

For investors, the implications are strategic. A credible financial centre enhances deal flow, improves capital access, and strengthens exit options for private equity and venture funds. For policymakers, the challenge lies in moving from regulatory design to delivery. For domestic enterprises, the rise in ranking represents opportunity—the chance to integrate into regional financial value chains and attract international partners.

The lesson is clear: rankings can validate momentum, but they cannot replace it. Ho Chi Minh City’s financial centre ranking improvement is both a sign of progress and a reminder of responsibility. Turning recognition into enduring capability will determine whether Vietnam’s financial ambitions mature into measurable global relevance.