Ho Chi Minh City Launches International Financial Centre, Reshaping Office Market Outlook
Ho Chi Minh City has formally established its International Financial Centre (IFC), a government-designated financial zone spanning approximately 899 hectares across both banks of the Saigon River — a development expected to concentrate premium office demand along the CBD and Thu Thiem corridor through 2030.
The IFC Committee was established in December 2025, headquartered at 123 Truong Dinh and 8 Nguyen Hue. The zone connects the existing CBD with Thu Thiem's new urban area, backed by National Assembly Resolution No. 222/2025 and IFC Establishment Decree No. 323/2025/NĐ-CP. Licensing frameworks are being finalized in 2026, with full institutional operations targeted for 2027.
The launch arrives as Vietnam's economy records strong momentum. GDP growth reached 7.8% in Q1/2026, with registered foreign direct investment surging 42.9% year-on-year to US$15.2 billion — the highest first-quarter registered FDI figure in recent years, according to NAI Vietnam Research and the General Statistics Office.
Office Market Context: Q1/2026
HCMC's total office supply remained stable at more than 1.8 million sqm in Q1/2026, with no new completions during the quarter. Grade A asking rents averaged US$54.5/sqm/month and Grade B at US$33.9/sqm/month, while occupancy continued to recover across both segments.
Grade A Pipeline: Constrained Through 2027
No new Grade A completions were recorded in HCMC during Q1/2026. The Kross — a LEED Gold and WELL certified development on Ton Duc Thang Street in Saigon Ward — is the only Grade A project scheduled for CBD completion in 2026, delivering approximately 31,229 sqm. A more significant supply wave is anticipated from 2028, when Opusk (54,000 sqm, An Khanh Ward), Saigon Centre 3, and Millennial (40,000 sqm each) are projected to enter the market.
IFC Incentives and What They Mean for Tenants
Tenants operating within the IFC zone are expected to benefit from a corporate income tax rate of 10% for up to 30 years in priority sectors, with exemptions of up to 4 years and a 50% reduction for a further 9 years. Personal income tax exemptions for eligible international managers are being considered through end-2030. Developers may access preferential land lease terms of up to 70 years.
For businesses evaluating office decisions in HCMC — whether relocating, expanding, or entering the market for the first time — the constrained Grade A pipeline through 2027 and the IFC's pull on premium tenant demand make early site selection decisions increasingly consequential.
