Strategic pillars to turn Da Nang into a regional financial center

Mr. Andy Khoo, General Director of Terne Holdings Group (Singapore).

This is the recommendation of Mr. Andy Khoo, General Director of Terne Holdings Group (Singapore) when sharing about the orientation of developing an international and regional financial center in Vietnam.

Mr. Andy Khoo said that Vietnam is facing a turning point in its economic development journey, with a bold move to propose unprecedented policies for financial centers in Ho Chi Minh City and Da Nang.

This timely development demonstrates the Government’s vision and commitment to seizing global opportunities and positioning Vietnam as a competitive financial center. The formation of an international and regional financial center will make an important contribution to Vietnam’s GDP.

Positioning the difference

Sharing about the orientation of developing a financial center in Vietnam, according to Mr. Andy Khoo, Ho Chi Minh City is a key financial center, playing the role of a global gateway for capital markets and corporate finance. The regional financial center in Da Nang ensures access to finance nationwide and reduces over-reliance on a single financial center (Ho Chi Minh City).

Unlike the International Financial Center in Ho Chi Minh City which focuses on capital markets, the Regional Financial Center in Da Nang can specialize in green finance, trade facilitation and fintech innovation, in line with global market trends.

Mr. Andy Khoo said that when positioning the Da Nang Financial Center on the global financial map, it is very important to learn from successful models such as Singapore, Dubai (DIFC) and emerging centers such as GIFT City or Labuan. However, Ho Chi Minh City is not simply copying but is shaping a distinct identity.

“Taking advantage of Vietnam’s strengths and regional opportunities, the Da Nang Financial Center can focus on green finance, trade finance and digital innovation, which will help Da Nang make a clear difference.

In addition, the special economic zone (SEZ) and freeport (Le Freeport) will provide tax advantages and storage solutions for high-value assets. Operating in English is a must to ensure trust from international investors," Mr. Andy Khoo shared.

A corner of Da Nang city - Photo: VGP/The Phong

Three strategic pillars

To position Da Nang as the next financial hub of Southeast Asia, Mr. Andy Khoo, CEO of Terne Holdings Group, suggested that Da Nang City should focus on three strategic pillars, in line with the city's strengths and opportunities: Green finance, fintech innovation and trade finance.

On green finance: Vietnam’s commitment to achieve net zero emissions by 2050, coupled with ASEAN’s US$1 trillion green finance need by 2030, presents a huge opportunity. The Da Nang Financial Centre can take the lead in this area by issuing green bonds, facilitating carbon credit trading, and developing financial products tailored to sustainability-minded investors. These steps will position the Da Nang Financial Centre as the green finance hub of ASEAN.

On fintech innovation: Fintech is revolutionizing global finance and Vietnam is already one of the leading countries in the region in adopting cryptocurrencies, ranking in the global top 10. Da Nang can become a sandbox for startups in the fields of: Blockchain, digital payments, new generation artificial intelligence-based financial solutions (Gen AI). With policies to encourage innovation, Da Nang Financial Center can attract global investors and financial technology companies, making Da Nang a hub for fintech innovation in the region.

Regarding trade finance: Da Nang's geographical location, close to important trade routes within the framework of the Regional Comprehensive Economic Partnership (RCEP) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), along with major ports such as Tien Sa and Lien Chieu, make the city a hub for trade finance.

According to CEO Terne Holdings, small and medium enterprises (SMEs) in the ASEAN region have a large but unmet need for trade finance. The Da Nang Financial Center can meet this need by providing new trade finance solutions and facilitating the seamless flow of capital across borders.

In addition, CEO Terne Holdings also proposed that Da Nang City research and deploy a free port to safely store high-value assets, thereby attracting wealthy individuals and banks looking for asset-based financial solutions; provide arbitration facilities for commercial disputes and tax incentives in the special economic zone (SEZ). These are the differentiating factors that help Da Nang Financial Center create a competitive advantage in the global financial market.

The Phong