There are currently 121 financial centers in the world and the trend of competing to become leading financial centers with attractive, innovative products, suitable for the movement and development is taking place strongly in many countries.
The need for a new financial center, different from existing financial centers to receive financial resources shifting from major international financial centers, provide new financial services, access new markets, new development trends... is becoming increasingly urgent; in which, the high possibility of forming a new financial center in Asia - Pacific, which is considered the most dynamic economic center in the world, is becoming increasingly clear.
Vietnam is a bright spot in economic development and growth with macroeconomic stability, attracting investment to develop a modern financial market, aiming to form a financial center capable of connecting with financial centers in the region and the world. Vietnam is also among the leading markets in the rate of application of future financial technologies, which can create competitive advantages and form specific products. Vietnam has many natural advantages to develop into a regional and international financial center such as: located at the international crossroads between maritime routes from North to South, from East to West and also the center of Southeast Asia - where the time zone is different from the 21 largest financial centers in the world.
Deputy Minister of Planning and Investment Nguyen Thi Bich Ngoc said that according to the Global Financial Centres Index (GFCI) report No. 36 published in September 2024, Ho Chi Minh City was ranked 105th out of 121 global financial centres; up 3 places, from 108th out of 121 in 2022. In 2024, the World Intellectual Property Organization (WIPO) also assessed that Vietnam is one of the 8 middle-income countries and one of the 3 countries with the most progress in innovation; at the same time, holding a record of outstanding achievements compared to the level of development for 14 consecutive years.
From here, it can be seen that the construction, operation and development of a competitive regional and international financial center in Vietnam will contribute to bringing the country into a new era, an era of national growth.
Although the construction, consolidation and promotion of competitive advantages to form a regional financial center, aiming at an international financial center is posing many challenges for Vietnam; if successful, Vietnam will be able to connect to the global financial market; attract foreign financial institutions and create new investment resources, promote existing investment resources; take advantage of opportunities to shift international investment capital flows; promote the development of Vietnam's financial market to become effective, catch up with international standards; at the same time contribute to the sustainable development of the national economy by enhancing the role, position and prestige of Vietnam in the international arena, Deputy Minister Nguyen Thi Bich Ngoc emphasized.
The Ministry of Planning and Investment is drafting and collecting comments from agencies, departments, branches and affected subjects to complete the Resolution to submit to the National Assembly on building a regional and international financial center in Vietnam.
Accordingly, the draft proposes regulations on the number, location, functions and tasks of financial centers; incentive mechanisms and policies such as financial, monetary, banking, foreign exchange policies, testing mechanisms (sandbox), taxes, immigration and travel, etc. According to the perspective of the Ministry of Planning and Investment, the document, when issued, will greatly affect credit institutions; financial companies; stock exchanges; financial investment funds; investment funds; insurance companies and other businesses operating in financial centers.
As the representative voice of the majority of businesses; at the same time, after synthesizing opinions and viewpoints from the member community and affiliated industry associations, the Vietnam Federation of Commerce and Industry believes that the subjects eligible to register as members of the financial center are credit institutions, financial companies, stock exchanges, gold, foreign currency, financial investment funds, investment funds, insurance companies, etc.
These are businesses that provide financial services while large financial service users such as corporations, parent companies, holding companies, etc. have not been mentioned. This leads to the question of whether non-financial businesses are allowed to register as members of the Financial Center or not?
Referring to the experience of some other financial centers in the world that also have membership registration regulations, the subjects allowed to participate are divided into two clear groups, financial enterprises and non-financial enterprises. Therefore, the drafting agency needs to consider this issue and adjust it to suit the reality in Vietnam and the general trend globally.
The draft also mentions a controlled testing policy for financial intermediaries, also known as fintech; it is being designed in the direction of assigning the Government to specify in detail measures to manage crypto assets, cryptocurrencies, NFTs, utility tokens, etc. According to VCCI, such regulations may lead to difficulties for the Government in issuing guidance documents because it is impossible to standardize issues that are too new and still changing very quickly.
Therefore, VCCI recommends that the drafting agency change its approach, allowing businesses to propose solutions to meet the State's management goals. Specifically, the State needs to set goals such as protecting property rights, preventing fraud, ensuring safety, cyber security, preventing money laundering, energy and environmental security, etc.
When applying for a license, fintech businesses will present their business model and explain the solutions to achieve the above goals. State agencies will review, evaluate, appraise the solutions and grant licenses for such fintech activities.
Enterprises must properly implement the solutions they have committed to and must report and be subject to regular inspection and supervision by state agencies. After a period of time, when the enterprise's solutions are proven to be effective, the State will proceed to develop them into management regulations.
Regarding corporate income tax on investment in innovation and creativity, the draft only focuses on tax exemptions and reductions. However, according to many startups, current regulations on corporate income tax are hindering capital flows into this market.
For example, a venture capital firm invests in startups and invests in many innovative startups. These startups often have a low success rate, but if they do succeed, they can bring in huge profits because the value of their capital contribution can increase many times over.
Venture capital firms that sell their stakes in successful startups will have revenue subject to corporate income tax. However, the costs invested in failed startups cannot be deducted when determining tax liability because the principle of costs must correspond to revenue according to the law on corporate income tax.
From here, VCCI recommends that the drafting agency supplement policies and regulations on tax mechanisms suitable for businesses registering for venture investment activities in financial centers.
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