Ho Chi Minh City charts a new path for urban development in the digital area
Ho Chi Minh City (HCMC) is redefining what it means to be an “international metropolis.” With a population of 14 million and contributing 25% of Vietnam’s GDP, the city is shifting its focus from mere scale to the quality of growth, emphasizing governance, innovation, connectivity, and livability.
To support this shift, HCMC is implementing a multi-polar growth model anchored in five strategic development pillars. These include:
- Promoting high-tech industries and innovation (such as AI, semiconductors, and big data)
- Enhancing logistics and free trade linked to ports, airports, and Free Trade Zones (FTZs)
- Developing an International Financial Center (IFC)
- Fostering tourism and cultural industries
- Advancing education, healthcare, and science & technology in alignment with global standards.
A defining feature of HCMC’s development strategy is “dual transformation” - the integration of digital and green transitions. Positioned as a national case study, the city is aiming to become a mega-city by 2050 and a low-carbon regional hub.
One of the most significant ambitions is HCMC’s momentum toward becoming a regional International Financial Center (IFC). Global players are increasingly recognizing the city’s potential to emerge as a next-generation IFC in Asia. Key opportunities being explored include trade finance, SME finance, and on-chain finance using digital assets and blockchain. Major financial institutions believe that establishing an IFC in HCMC could lower Vietnam’s cost of capital and attract long-term investment flows. Some have even suggested that HCMC could serve as a regional base for digital finance initiatives.
Experts, however, stress that governance - not technology - will determine the success of these ambitions. While smart cities often highlight tech innovation, long-term progress requires clear governance frameworks, institutional design, and public trust. Essential enablers identified include integrated data systems, centralized coordination, fully online services, strong public-private partnerships, long-term vision, artificial intelligence capabilities, and sustained commitments to sustainability.
HCMC is moving beyond measuring success solely by economic weight or population size. Instead, it is prioritizing quality of growth and institutional design. HCMC frames digitalization as an enabler of better governance, greener growth, and more inclusive finance. Its focus on an International Financial Center, SME finance, and digital assets connects urban transformation with capital market development.
Vingroup’s Electric Taxi Arm GSM Plans Global IPO, Targets $20 Billion Valuation
In late December 2025, Vingroup announced that its electric vehicle taxi affiliate, Green and Smart Mobility JSC (GSM), is preparing for an international IPO. This move follows VinFast’s 2023 Nasdaq listing and is intended to fund GSM’s regional expansion while helping ease financial pressures on the parent conglomerate.
Advisors have suggested an ambitious valuation of approximately $20 billion for GSM. If achieved, the two-year-old company would stand on par with major regional competitors like Grab, which currently holds a market capitalization of around $21 billion.
GSM is reportedly targeting the Hong Kong Stock Exchange as its listing destination. Sources indicate that Hong Kong provides deeper liquidity and a stronger investor appetite for electric vehicle (EV) and mobility sectors compared to other regional markets. While no concrete IPO date has been confirmed, Vingroup stated that the listing will not take place in 2026, with current estimates pointing to a window between late 2026 and early 2027.
Domestically, GSM has rapidly emerged as a dominant player in Vietnam’s ride-hailing market. According to Mordor Intelligence, GSM’s market share reached 40% in Q1 2025, surpassing Grab’s 32%. A separate survey by Rakuten Insight placed GSM’s share at 35%, trailing Grab’s 55%.
GSM maintains a symbiotic relationship with VinFast, exclusively using VinFast electric vehicles. This arrangement has provided a stable domestic sales channel for the manufacturer. However, by Q3 2025, sales to GSM accounted for just 26% of VinFast’s total global deliveries - down from 72% in 2023 - as VinFast expanded its broader retail customer base.
Beyond Vietnam, GSM has already extended its services into Laos, Indonesia, and the Philippines. The company is also actively exploring entry into the Indian market, underscoring its ambition for broader international reach.
GSM's planned IPO aims to replicate VinFast's capital-raising success and fund regional expansion. The $20 billion valuation is ambitious for a two-year-old company but reflects the green mobility growth story in Southeast Asia. A Hong Kong listing would mark a milestone for Vietnamese firms and provide capital for GSM's expansion. Success hinges on market conditions and proving the profitability of its all-electric model against established competitors.
New decree sharpens enforcement in securities market
Vietnam has issued Decree No. 306/2025/ND-CP, amending sanctioning regulations in the securities and derivatives markets to align with the amended Securities Law 2024.
The decree is designed to strengthen enforcement mechanisms while also streamlining administrative procedures. It aims to improve market transparency, bolster investor protection, and enhance regulatory efficiency. By improving the clarity and consistency of regulations, the decree supports a more disciplined and transparent market environment.
Sanctioning provisions under the new decree have been made more consistent with existing anti-money laundering laws and broader legislation on administrative violations. These adjustments address persistent gaps in enforcement that had previously limited the effectiveness of market oversight.
In the derivatives market, Decree 306 reduces certain business conditions and compliance burdens. This easing of regulatory requirements is expected to lower operating costs and better support digital transformation and market competitiveness.
Importantly, the decree sends a clear signal of stricter compliance expectations, with broad coverage of violations and stronger deterrence, while regulators commit to issuing detailed implementation guidance.
Decree 306 marks a meaningful shift from reactive oversight to more rules-based, disciplined regulation in Vietnam’s securities market. By tightening enforcement while streamlining procedures, regulators are signaling that market growth must go hand in hand with transparency and investor protection. In the short term, compliance demands will rise, but over the long term, the decree should help build trust, attract institutional capital, and support Vietnam’s ambition to upgrade its capital markets.
Vietnam’s 2025 economy through the numbers
- High GDP Growth: Vietnam achieved an estimated 8% GDP growth in 2025, the highest in the ASEAN region.
- Business Expansion: The number of enterprises in the country crossed the 1 million milestone for the first time.
- Public Investment: The government set a massive public investment target of $34.2 billion, though only about 70% was completed by late December.
- U.S. Trade Relations: The year was marked by a major trade shock when U.S. President Donald Trump imposed a 46% reciprocal tariff on Vietnamese goods in April. Following negotiations, this tariff rate was eventually adjusted down to 20%.
- Gold and Silver: Gold prices reached a record $6,079 per tael, a 90% increase from the start of the year, leading to supply shortages. Silver also peaked at VND3 million per tael.
- Currency: The VND/USD exchange rate hit a historic high of 26,536 in August, requiring intervention from the State Bank.
- Stock Market: The VN-Index reached a record 1,805 points following a status upgrade by FTSE Russell, even as foreign investors net sold $5 billion.
- Household Businesses: The revenue threshold for taxing household businesses was increased five-fold to VND500 million ($19,000).
- Real Estate: Apartment prices in major cities remained high, with luxury units exceeding $3,800 per square meter, making housing unaffordable for many.
Vietnam’s 2025 economy showed strong resilience but growing imbalances. While growth momentum and digital finance advances are clear strengths, execution gaps, asset inflation, and exposure to external shocks remain key risks. The data suggests Vietnam is entering a transition phase, where sustaining growth will depend less on speed and more on policy effectiveness, capital market depth, and social inclusiveness.
Vietnam’s finance sector achieves major milestones in 2025
A key milestone came in March 2025, when a major institutional overhaul took effect. This reform merged the Ministry of Finance with the Ministry of Planning and Investment, while also consolidating social security and state capital management functions. The move significantly streamlined governance processes and improved policy coordination across the system.
The Ministry of Finance played a leading role in institutionalizing seven strategic Party resolutions. This effort included submitting 15 key laws and resolutions to the National Assembly, covering frameworks for taxation, public finance, public debt, and the development of International Financial Centers.
Digital transformation also gained strong momentum. The government launched a national financial database, implemented a management strategy powered by AI and Big Data, and established an Intelligent Operations Center overseeing taxation, customs, treasury, and public investment.
Vietnam’s capital markets reached new heights during the year. Following an upgrade by FTSE Russell, the VN-Index surged by nearly 40%. Market capitalization hit 84% of GDP, and the number of investor accounts surpassed 11 million.
Fiscal policy continued to be a strong driver of growth. The government disbursed a record level of public investment, supported higher FDI inflows, eliminated the lump-sum tax regime for household businesses, and achieved record-high state budget revenues.
2025 was a turning point year for Vietnam’s finance sector, shifting from a traditional fiscal administrator to a strategic architect of growth, markets, and governance. Institutional consolidation, digital transformation, and capital market deepening were not incremental reforms but structural moves aimed at supporting sustained GDP growth above 8% and long-term ambitions such as financial center development and net-zero transition. Overall, the finance sector emerged as a system-level enabler - coordinating policy, mobilizing capital, and modernizing governance - laying a critical foundation for Vietnam’s next development phase rather than merely responding to short-term economic cycles.