Investors expect the Government to commit and have a clear strategy for an international financial center.

IPPG Chairman: Investors expect the Government to commit and have a clear strategy for an international financial center

Mr. Johnathan Hanh Nguyen still has high expectations for the implementation of the international financial center. However, foreign investors need commitment from the Government and a clear strategy.

At the workshop “Promoting and improving the efficiency of financial resources for national economic development in the new context” directed by the Central Economic Committee, the General Economic Department in coordination with Vietnam Economic Magazine and relevant agencies organized this morning, August 23, Mr. Johnathan Hanh Nguyen, Chairman of IPPG, gave many enthusiastic opinions.

According to him, over the past years, Vietnam has made important strides in mobilizing and allocating financial resources for economic development.

However, Vietnam is also facing some limitations in exploiting financial resources. Typically, financial resources have not been allocated effectively, there is a lack of a connection mechanism between domestic and foreign capital sources, modern financial tools and digital financial services have not developed synchronously.

To improve and enhance the efficiency of exploiting and using financial resources, Mr. Johnathan Hanh Nguyen "offered advice".

First, there is a need for a mechanism to attract private resources and promote public-private partnerships (PPP). At present, attracting PPP investment is mainly taking place in infrastructure projects. The government needs to expand to financial projects, large projects in financial infrastructure, venture capital funds and programs to support startups, energy, information technology and public projects of strategic significance.

However, for these mechanisms to be truly effective, it is necessary to consider adjusting the law on PPP to be transparent and stable, especially regarding the bidding process, risk allocation between parties, and ensuring the rights of private investors.

Second, there is a mechanism to support enterprises and private economic groups to access capital from the international capital market. By improving financial management capacity and financial reporting transparency, and complying with international standards on financial management. This will help them build their reputation and increase their opportunities to raise capital in the international market.

In particular, in the context of the current stagnant bond market, the Government needs to have policies to support businesses in issuing international bonds. Promote the listing process on international exchanges, creating conditions for them to access large capital sources from foreign investors.

Third, Vietnam should expand and improve its legal framework to attract foreign capital. The government should consider expanding the ownership limit room and adjusting preferential policies to attract large international financial corporations, creating favorable conditions for them to participate in the development of the financial market.

This not only enhances the three resources but also brings modern management technology and advanced financial knowledge.

Turning Da Nang into a regional financial center will attract capital flows from "king eagle" investors and bring many other "eagles" to Da Nang and the Central region, becoming an important new driving force to promote economic growth and attract capital flows.

Finally, the establishment of an international financial center to mobilize financial resources for Vietnam. IPPG is very enthusiastic about this and has sponsored the international financial center project in Ho Chi Minh City and Da Nang.

This is an important long-term strategy, not only to attract financial resources but also to elevate Vietnam's position on the global economic map.

Currently, ministries and sectors from the city to the central level have participated in giving comments on the project. However, Vietnam is lacking a clear overall strategy for developing an international financial center .

“There is no long-term and consistent plan for building policy mechanisms as well as a development roadmap, creating uncertainty for large investors who want to participate early in the market. They need a commitment from the Government and a clear strategy to see that this is a sustainable and potential plan,” said Mr. Johnathan Hanh Nguyen.

Since 2016, the project of an international financial center has been proposed. Mr. Johnathan Hanh Nguyen has been working for many years and has had a roadmap on the need for a Vietnamese financial center located in Ho Chi Minh City and Da Nang.

Two years ago, if approved, American investors pledged to invest about $10 billion in Vietnam, including $4 billion in Da Nang and $6 billion in Ho Chi Minh City to build an international financial center. However, at this point, American investors may have wavered.

At that time, according to Mr. Johnathan Hanh Nguyen, in addition to the 10 billion USD that American investors committed in writing, the US side made important decisions to determine the construction of six world-famous centers: Disneyland, Marvel, Universal, Sea World, Knotts and SixFlags in Vietnam.

Mr. Johnathan Hanh Nguyen said that if American investors put Disney in Ho Chi Minh City, it would attract an estimated 25 million tourists. If Universal were to be located in Hanoi, it could also attract 25 million visitors. And if Sea World were to be located in Bac Van Phong (Khanh Hoa), it could also attract 20 million visitors each year. Thus, if only 3 centers were put into operation, we would have 70 million tourists.

Source: https://baodautu.vn/chu-tich-ippg-nha-dau-tu-mong-chinh-phu-cam-ket-co-chien-luoc-ro-rang-ve-trung-tam-tai-chinh-quoc-te-d223120.html