International financial investment funds are interested

On January 16, the People's Committee of Da Nang City organized a workshop on "Developing a regional and international financial center in Vietnam".

Sharing at the workshop, Mr. Ho Ky Minh, Standing Vice Chairman of the People's Committee of Da Nang City, said that investors and international financial investment funds from the US, Singapore, the Middle East, and Switzerland are very interested in developing a financial center in Da Nang in the direction of innovation, green finance, financial technology, and trade finance.

Regarding the general model, Da Nang City proposes to develop an ecosystem of a multi-component financial center, focusing on 3 service groups.

The first is to provide international financial services such as payment services, international trade, risk management and foreign exchange trading services, green financial services, including financial services associated with the development of the Da Nang Free Trade Zone.

The second is fintech and techfin services such as providing software, application platforms to perform payment services, crypto asset transactions, innovative solutions in the financial sector based on artificial intelligence, big data, cloud computing, blockchain, etc.; at the same time providing incubation space for startups, fintech companies seeking growth, innovation and internationalization.

Financial Center
Da Nang is determined to establish an international financial center. Photo: BTC

Third are investment support services, business development and utility services such as auditing, accounting, legal services, tax consulting, customs, resort services, conferences, casinos, leasing, real estate valuation and related assets to create a diverse ecosystem, developing Da Nang towards the direction of a world financial and entertainment center.

"To serve the establishment of the financial center complex, Da Nang City has planned a land fund of 6.17 hectares with the best connection location and infrastructure in Vietnam to design office functions, provide resort, conference, entertainment and utility services," said Mr. Minh.

Da Nang also arranged a 9.7-hectare land plot to develop financial technology services adjacent to Software Park No. 2 - a key area attracting advanced technology companies with high-quality infrastructure and information technology.

Dragon Bridge Danang
Da Nang is looking to boost growth by tapping new drivers.

Contribute an additional 3-5 billion USD annually to Vietnam's GDP

Commenting on Da Nang's plan, Mr. Andy Khoo, CEO of Terne Holdings, said: "With the Da Nang International Financial Center, we can contribute an additional 3-5 billion USD annually to Vietnam's GDP and turn this vision into reality."

According to the CEO, in the North, Hanoi is the main center for policy making and state management. In the South, Ho Chi Minh City is a key financial center, acting as a global gateway for capital markets and corporate finance. Now, Da Nang appears as a strategic bridge between these two economic locomotives.

"Unlike the financial center in Ho Chi Minh City that focuses on capital markets, the Da Nang International Financial Center can specialize in green finance, trade facilitation, and fintech innovation, in line with global market trends," Mr. Andy Khoo analyzed.

He recommended that a focus on green finance, trade finance and digital innovation would help the Da Nang International Financial Centre differentiate itself. The special economic zone (SEZ) and Le Freeport would provide tax advantages and storage solutions for high-value assets. English-speaking operations are required to ensure trust from international investors.

To position Da Nang as the next financial hub of Southeast Asia, according to Mr. Andy Khoo, it is necessary to focus on three strategic pillars, in line with the city's unique strengths and opportunities: green finance, Fintech innovation, and trade finance.

According to Dr Andreas Baumgartner, CEO of the Metis Institute, successful international financial centres need a strong, transparent and trustworthy regulatory and governance environment. This requires confidence that the regulatory framework within which they operate is predictable, clear, stable, reliable and in line with global standards. The Dubai International Financial Centre and the Abu Dhabi Global Market in the UAE are good examples, with strong legal systems based on English common law, clear regulations and a transparent management structure.

Likening building an international financial centre to running a marathon, Dr. Andreas Baumgartne noted that "it is not always easy and will require a lot of perseverance and endurance."

“There will be times when you wonder whether this is really worth it. But, I assure you: If you look at what financial centres have achieved elsewhere, what they have created and enabled, the answer is clear: Yes, it is worth every effort!

They can and will make a big difference if done correctly!”, Dr. Andreas Baumgartner emphasized.