Vietnam Launches Asia-Pacific Aviation Financial Hub

Vietnam International Financial Centre–Ho Chi Minh City (VIFC-HCM) and VietJet have officially launched the Asia-Pacific Aviation Financial Hub (AAFH), aiming to develop aviation-related financial activities including aircraft leasing, fuel procurement, insurance and green financing.

The event was held on the sidelines of the Singapore Airshow.

Chairman of the VIFC executive authority Truong Minh Huy Vu told ATW On Location that Vietnam’s tourism sector has experienced rapid growth, alongside the country’s sustained double-digit GDP expansion.

“The government has recognized the need to build a long-term ecosystem to support this growth across all domains of the air transport sector,” Vu said, although he acknowledged the government is playing a bit of catchup with the likes of Singapore and Hong Kong and hopes to create a unique proposition with a focus on innovation.

VIFC will span 900 hectares (2,224 acres) as a “bordered” financial district, with an estimated 30% of the space dedicated to air transport and tourism-related activities. The zone is expected to offer competitive tax and fee policies, liberalized capital flows and foreign exchange mechanisms, multi-currency payment options, and flexible cross-border capital transfers.

AAFH is projected to facilitate approximately $50 billion in transaction value by 2035.

Low-cost carrier VietJet Air has been identified as one of the launch airline partners and has also awarded honorary strategic membership certificates to Airbus and Boeing.

“Airbus highly values the role of the Asia-Pacific Aviation Financial Hub in establishing an effective platform that connects the demand for next-generation fleet development with the global financial ecosystem. Participating as an honorary strategic member reflects Airbus’ long-term commitment to advancing innovative financing solutions and supporting the sustainable growth of the aviation industry,” Airbus EVP Paul Meijers said in a statement.