HCMC TARGETS RETURN OF OFFSHORE MARITIME FINANCE FLOWS

A view of downtown HCMC - PHOTO: LE VU

HCMC – The Vietnam International Financial Center in Ho Chi Minh City (VIFC-HCMC) plans to launch a maritime financial center ecosystem on May 21, aiming to bring back around 30% of overseas maritime financial transactions within five years, equivalent to US$300 billion annually.

The center is positioned as one of the four core pillars of VIFC-HCMC. The initiative is intended to financialize assets and cash flows tied to Vietnam’s marine economy infrastructure.

The total value of goods passing through HCMC’s port system is estimated at more than US$1 trillion a year. Despite hosting major transshipment hubs, 80-90% of financial transactions linked to these cargo flows are still conducted in Singapore and Hong Kong (China).

To address this gap, the upcoming maritime finance ecosystem, including a maritime financial exchange, will operate under a “port-to-finance” model. Under the framework, data related to cargo, shipping contracts, electronic bills of lading, and payment flows will be standardized into financial data.

Based on this data, stable cash flows generated from cargo handling and warehousing services will be structured into infrastructure bonds, investment funds, and securitized products to attract long-term international capital. The model is also expected to help green port projects gain easier access to ESG financing linked to environmental, social, and governance standards.

The strategy is aimed at transforming HCMC from a port city reliant on cargo handling fees into a capital transit hub for Vietnam’s broader marine economy. The ecosystem has initially attracted participation from financial institutions and logistics firms including Gemadept, Saigon Port and HDBank along with international companies.

To tackle major bottlenecks related to legal barriers and foreign exchange controls, VIFC-HCMC has proposed establishing an international court and arbitration framework, alongside a regulatory sandbox mechanism allowing capital to move more freely through reporting obligations instead of complex approval procedures for cross-border transfers.

Source: The Saigon Times