Ho Chi Minh City (VNA) – To attract and retain international capital, the Vietnam International Financial Centre (VIFC) needs not only competitive financial mechanisms but also a clear, consistent and predictable legal framework, as legal certainty and effective dispute resolution can directly influence investment costs, risks and decisions, experts said at a conference held in Ho Chi Minh City on August 25.
The event was part of the Loseby Lecture 2026, jointly organised by the British Chamber of Commerce Vietnam (BritCham Vietnam) and Dragon Capital.
Legal transparency critical to international capital attraction
Speakers examined the role of the rule of law, judicial institutions and dispute resolution mechanisms in promoting cross-border investment and trade and supporting the VIFC’s development.
As Vietnam moves to build an internationally competitive VIFC, experts said efforts should go beyond preferential policies and expanded financial services to creating a legal environment that is clear, consistent and predictable.
Dominic Scriven, Chairman and Founder of Dragon Capital, said legal clarity, consistency and predictability are essential to strengthening investor confidence, enabling long-term business planning and encouraging firm capital commitments to Vietnam.
Denzel Eades, Chairman of BritCham Vietnam, stressed that a robust and transparent legal framework, together with independent judicial institutions, is fundamental to international investor confidence.
He said the British business community remains committed to sharing its experience in commercial law, dispute resolution and regulatory development as Vietnam pursues its ambition of building a world-class VIFC.
Common law can reduce risk premiums
Speaking online, Lord Richard Snowden, a justice of the UK Supreme Court, highlighted the potential role of Common Law in developing Vietnam’s IFC.
He noted Vietnam’s significant progress, particularly the adoption of legislation on a specialised IFC court in December 2025. Allowing English as a working language, permitting foreign law and providing for the appointment of qualified foreign judges are important elements of a judicial institution serving international transactions.
According to Snowden, applying Common Law principles and upholding the rule of law could bring tangible economic benefits as transactions can only flourish when parties have confidence and certainty about how disputes will be handled.
Where uncertainty exists, such as unfamiliar contractual terms, a foreign legal system or doubts about judicial independence, investors may be reluctant to enter into transactions. Even when they proceed, such uncertainty may be reflected in an additional “risk premium”, increasing transaction and financing costs and potentially reducing the number of deals.
However, Snowden noted that Vietnam’s IFC legal framework still requires further development, particularly in the enforcement of judgments. One notable gap is the lack of comprehensive provisions on collective enforcement mechanisms, including insolvency procedures.
Drawing on the experience of the Astana International Financial Centre (AIFC), Dubai International Financial Centre (DIFC) and Hong Kong, Andrew Oldland, head of TheCityUK’s IFC Working Group, said these centres share a common feature: specialised legal systems and courts distinct from those of their host countries. Such courts operate according to Common Law principles and maintain judicial independence from the wider national judicial system.
Another common feature is a pool of independent, experienced commercial judges capable of issuing well-reasoned judgments based on Common Law principles. They come from jurisdictions including Australia, New Zealand and Singapore, and many are recruited from former senior members of the judiciary or experienced lawyers in the UK.
Oldland said an IFC could be developed progressively by expanding permitted activities and broadening participation by different market players. However, a fully operational and independent court should be established from the outset. This is essential to building business confidence and providing a foundation for international trade and investment at Vietnam’s IFC./.
