Gujarat International Finance Tec-City (GIFT City), India’s first and only International Financial Services Centre (IFSC), has signed a Memorandum of Understanding with the Vietnam International Financial Center-Da Nang (VIFC-DN) in New Delhi. The agreement will see GIFT City share its institutional expertise and best practices with Vietnam as it builds its own international financial hub from the ground up. The partnership marks a new dimension in India-Vietnam financial diplomacy, extending bilateral cooperation beyond trade and defence into the domain of financial centre development.
What Is GIFT City?
GIFT City is a central business district being developed in the Gandhinagar district of Gujarat, situated on the banks of the Sabarmati River, about 12 km from the Sardar Vallabhbhai Patel International Airport. Spread over 886 acres (359 hectares), it was envisioned by Narendra Modi and formally launched in April 2015. It serves as India’s first operational greenfield smart city and hosts the country’s first and only International Financial Services Centre (IFSC).
The IFSC at GIFT City was established in December 2015 to provide financial services comparable to global hubs such as Singapore, Dubai International Financial Centre (DIFC), and Hong Kong. It offers a range of tax incentives including a 10-year tax holiday on profits, exemption from securities transaction tax, and no stamp duty on transactions within the IFSC. Businesses operating here can engage in banking, capital markets, insurance, fund management, aircraft leasing, and fintech activities.
The International Financial Services Centres Authority (IFSCA), established on April 27, 2020 under the IFSCA Act, 2019, serves as the unified regulator for the IFSC. Headquartered in GIFT City itself, IFSCA consolidated the regulatory powers of RBI, SEBI, IRDAI, and PFRDA into a single authority for all IFSC-related business. As of March 2026, GIFT City hosted more than 1,500 entities with banking assets worth $111 billion, and its fund management ecosystem comprised 217 Fund Management Entities managing 360 schemes with cumulative capital commitments exceeding $39 billion.
Vietnam’s International Financial Center in Da Nang
Vietnam launched its ambitious plan to establish an International Financial Center under a “one centre, two destinations” model, with hubs in Ho Chi Minh City and Da Nang. The National Assembly passed Resolution 222/2025/QH15 on June 27, 2025 (effective September 1, 2025), officially approving the establishment of the financial centre. The government followed with Decree 323/2025/ND-CP, which outlines the governance structure, licensing procedures, and operational framework.
The Vietnam International Financial Center-Da Nang (VIFC-DN) was formally inaugurated on January 9, 2026 at Software Park No. 2. While Ho Chi Minh City is positioned as a comprehensive financial hub focusing on banking, capital markets, and global investment connectivity, Da Nang is being developed as a specialised innovation-driven centre focusing on fintech, green and sustainable finance, digital assets, and regulatory sandbox models.
Covering approximately 300 hectares in planned development, VIFC-DN currently operates from over 4,000 square metres of modern workspace with full 5G coverage. A 20-storey tower with more than 27,000 square metres of floor space, built to green and smart standards, was scheduled for completion in the second quarter of 2026. The centre is designed to serve as a controlled testing ground for digital asset products, cryptocurrencies, digital payments, and specialised trading platforms.
What the MoU Covers
The MoU, signed in New Delhi on July 7, 2026, establishes a framework for GIFT City and VIFC-DN to collaborate across multiple areas of financial centre development. The partnership is structured around four main pillars:
| Pillar | Key Areas |
|---|---|
| Financial Services | Sharing institutional knowledge on regulation, taxation, and operating models for international financial centres |
| Fintech and Digital Innovation | Cooperation on digital finance, payment systems, and emerging financial technologies |
| Capacity Building | Professional exchanges, training programmes, and human resource development for the financial sector |
| Financial Sector Development | Joint research, publications, conferences, seminars, and outreach initiatives |
Sanjay Kaul, Managing Director and Group CEO of GIFT City, described the collaboration as essential to building globally competitive financial centres. He stated that GIFT City would share the knowledge and institutional experience gained from its development journey while exploring new opportunities in financial services, fintech, and investment.
The agreement explicitly aims to promote cross-border investments and strengthen business linkages between India and Vietnam. Both institutions have committed to maintaining ongoing institutional engagement on areas of mutual interest through professional exchanges and coordinated outreach.
A Broader Financial Diplomacy
The GIFT City-VIFC-DN MoU is the latest in a series of deepening financial ties between India and Vietnam. In May 2026, during the state visit of Vietnamese President To Lam to India, the two countries elevated their relationship to an “Enhanced Comprehensive Strategic Partnership”, marking 10 years of the Comprehensive Strategic Partnership (2016-2026). As many as 13 MoUs were signed, including one between the Reserve Bank of India and the State Bank of Vietnam to promote cooperation in digital payments and financial innovation, with plans to link India’s UPI with Vietnam’s fast payment system.
Bilateral trade has grown from $5.43 billion in 2016 to $16.46 billion in 2025, with a target of $25 billion by 2030. India has emerged as Vietnam’s 8th largest trading partner, while Vietnam is India’s 4th largest trading partner within ASEAN. The year 2026 also marks the 54th anniversary of diplomatic relations between the two countries, which were established in 1972.
Vietnam is a key pillar of India’s Act East Policy and its Indo-Pacific vision. The two countries share convergence on regional security issues, maritime cooperation, and a rules-based order in the Indo-Pacific. The financial centre MoU adds an institutional dimension to this partnership, moving cooperation beyond traditional areas of trade and defence into financial infrastructure development.
Significance of the Partnership
This agreement carries implications that extend well beyond the two institutions involved. For India, it positions GIFT City as a model that can be exported to emerging economies looking to build their own financial hubs. As Singapore and Hong Kong remain the default templates for Asian financial centres, GIFT City’s IFSC model, built under a distinct regulatory sandbox with a unified regulator, now offers a viable alternative for developing countries.
For Vietnam, the partnership provides access to a decade of hands-on experience in building an IFSC from scratch. Da Nang, which only launched its financial centre in January 2026, can learn from GIFT City’s successes in attracting entities, building regulatory frameworks, and creating a competitive tax environment. The collaboration could accelerate Vietnam’s timeline for establishing a fully operational international financial centre.
The agreement also signals a growing trend of South-South cooperation in financial services, where developing countries share institutional knowledge rather than relying solely on established financial centres in Europe or North America. For Indian readers, this MoU represents a significant milestone: India is no longer just a recipient of global financial expertise but an exporter of institutional knowledge in building world-class financial infrastructure.
Key Takeaways
- GIFT City, India’s first and only International Financial Services Centre (IFSC), signed an MoU with Vietnam International Financial Center-Da Nang (VIFC-DN) on July 7, 2026 in New Delhi.
- The agreement covers financial services, fintech, digital innovation, capacity building, and cross-border investment between India and Vietnam.
- GIFT City was launched in April 2015, spans 886 acres in Gandhinagar, Gujarat, and is regulated by the International Financial Services Centres Authority (IFSCA) established in April 2020.
- As of March 2026, GIFT City hosts over 1,500 entities with banking assets of $111 billion.
- VIFC-DN, inaugurated in January 2026, is part of Vietnam’s “one centre, two destinations” model and focuses on fintech, green finance, and digital assets.
- The MoU builds on the Enhanced Comprehensive Strategic Partnership between India and Vietnam, established in May 2026, which includes an RBI-SBV agreement to link UPI with Vietnam’s digital payment system.
