The Ministry of Planning and Investment said: Resolution No. 259/NQ-CP dated December 31, 2024 of the Government promulgating the Action Plan to implement Notice No. 47-TB/TW dated November 15, 2024 of the Politburo's conclusion on the construction of a regional and international financial center in Vietnam, in which the Ministry of Planning and Investment is assigned to preside over and coordinate with relevant ministries, branches and localities to prepare documents to draft a Resolution of the National Assembly on the construction of a regional and international financial center in Vietnam.
In terms of practical basis, according to the Ministry of Planning and Investment, there are currently 121 Financial Centers in the world and there is strong competition to become leading Financial Centers, with attractive, innovative products, suitable for movement and development. The need for a new Financial Center, different from existing Financial Centers to receive financial resources shifting from large international Financial Centers, provide new financial services, access new markets, new development trends... is urgent. In particular, the possibility of forming a new Financial Center in Asia - Pacific, which is considered the most dynamic economic center in the world today, is increasingly evident.
Vietnam is a bright spot in economic development and growth, macroeconomic stability, investment attraction, and is gradually converging the necessary factors to develop a modern financial market, aiming to form a financial center, capable of connecting with financial centers in the region and the world.
In 2022, Vietnam will have Ho Chi Minh City included in the official list of Global Financial Centers in GFCI Report 31 with a ranking of 102/120; in GFCI Report 35 (March 2024), Ho Chi Minh City ranked 108/121 and in GFCI Report 36 (September 2024), ranked 105/121.
In 2023, Vietnam will be assessed by the World Intellectual Property Organization (WIPO) as one of the top 3 innovative economies among low-middle income countries; one of the 7 countries with the most progress in innovation over the past decade; in 2024, it will be recognized by WIPO as one of the 8 middle-income countries with the most improved rankings since 2013 and one of the 3 countries holding the record for outstanding achievements compared to their development level for 14 consecutive years.
Building, consolidating and promoting competitive advantages to form a regional financial center, aiming at an international financial center, poses many challenges for Vietnam. However, if successful, it will help Vietnam: (i) connect to the global financial market; (ii) attract foreign financial institutions, create new investment resources, promote existing investment resources; (iii) take advantage of opportunities to shift international investment capital flows; (iv) promote the development of Vietnam's financial market effectively, catching up with international standards; (v) contribute to the sustainable development of the country's economy, enhance the role, position, prestige and influence of Vietnam in the international arena; thereby ensuring national defense and security, especially in the financial sector from an early and distant perspective. Building, operating and developing a competitive regional and international financial center in Vietnam will contribute to bringing the country into a new era, an era of national development.
According to the Ministry of Planning and Investment, from the political, legal and practical basis at home and abroad, the development of a Resolution on the International and Regional Financial Center in Vietnam is extremely necessary.
Policy on the number, location, structure, organization, functions and tasks of the Financial Center
The proposed content of the Resolution focuses on two groups of policies. One of these is the group of policies regulating the number, location, structure, organization, functions and tasks of the Financial Center.
Accordingly, the Financial Centers in Vietnam include: (i) Comprehensive international financial center in Ho Chi Minh City; (ii) Regional financial center in Da Nang city. The Financial Centers are specifically regulated in terms of location, administrative boundaries, and area.
Regarding the authority, order and procedures for deciding to establish a Financial Center, according to the proposal of the Ministry of Planning and Investment, the Prime Minister decided to establish a regional and international Financial Center in Ho Chi Minh City and Da Nang; The People's Committees of Ho Chi Minh City and Da Nang City develop a project to establish a Financial Center and report to the Prime Minister; The Steering Committee on Regional and International Financial Centers establishes an appraisal council, with the standing body of the Steering Committee as the focal point to appraise the project to establish a Financial Center and report to the Prime Minister.
Financial Center Regulatory Agencies
The Financial Center's management agencies include: (i) Management and Operation Committee: responsible for managing and operating the Financial Center effectively; (ii) Financial Supervision Committee: responsible for ensuring compliance with international financial standards and regulations of the Financial Center, while promoting an environment of transparency and integrity; (iii) International Arbitration Center under the Financial Center.
In which, the Management and Executive Committee includes the Board of Directors and affiliated departments and divisions: Strategic Management Board; Financial Management Board; Operational Supervision Board; Management Coordination Board.
The financial supervision committee includes the Board of Directors and its affiliated departments and divisions: Audit Committee; Legal Committee; Welfare Committee; Risk Management Committee; Administration and Human Resources Committee.
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