Developing Financial Centers in Ho Chi Minh City and Da Nang reflects aspirations and meets integration requirements

On the morning of January 4, 2025, in Ho Chi Minh City, assigned by the Government leaders, the Ministry of Planning and Investment coordinated with the People's Committee of Ho Chi Minh City and the People's Committee of Da Nang City to organize a Conference to announce the Government's Resolution promulgating the Action Plan to implement the construction of a regional and international financial center in Vietnam.

Minister of Planning and Investment Nguyen Chi Dung

Help affirm the position of a strong and sustainable economy

Speaking at the Conference, Minister of Planning and Investment Nguyen Chi Dung said that in recent times, the regional and world situation has had many fluctuations, complex and unpredictable developments. In particular, the global financial system is gradually reshaping; the world is in need of developing new financial centers, providing specific financial products and services, serving niche markets, different from traditional financial centers. Through that, receiving shifting financial resources, at the same time, also complementing and creating synergistic benefits, contributing to the overall development of the global financial market.

Therefore, emerging financial centers like Vietnam have a golden opportunity to participate in this "game", through establishing an open legal corridor, issuing outstanding preferential policies, in accordance with international practices to become a "playground" for leading financial investors.

According to the assessment from the Global Financial Center Index (GFCI) of the Z/Yen Organization of the London Financial Center, Ho Chi Minh City and Da Nang have converged many fundamental factors to develop a regional and international financial center, and are considered one of the emerging financial centers with strong growth momentum. This determination not only reflects Vietnam's aspiration, but also meets the requirements of deep integration with the global economy.

The construction of a regional and international financial center has also been identified by the Party, State, National Assembly and Government as one of the institutional breakthroughs, a policy decision to liberate resources, promote the transformation of the growth model associated with economic restructuring, to improve productivity, efficiency and competitiveness; bringing the country into a new era, the era of the Vietnamese people's rise.

According to Minister Nguyen Chi Dung, this is not a new problem in the world, but for Vietnam it is a difficult and unprecedented problem. Therefore, great opportunities will come with great challenges.

However, the successful construction of a regional and international financial center will play an important role in helping Vietnam achieve five opportunities: (i) Connecting with the global financial market; (ii) Attracting foreign financial institutions, creating new investment resources, promoting existing investment resources; (iii) Providing high-quality financial services, meeting the needs of domestic and foreign enterprises; (iv) Creating a new qualitative shift, helping the financial market in Vietnam become healthy and effective, catching up with international standards, promoting the process of economic restructuring; (v) Contributing to bringing Vietnam deeper into the global economic value chain, enhancing the role, prestige and influence of Vietnam in the international arena; affirming its position as a strong and sustainable economy; thereby ensuring national defense and security, especially in the financial sector early and from afar.

High determination , great effort, drastic action

In Conclusion No. 47-TB/TW dated November 15, 2024 on the Project to build a regional and international financial center, the Politburo requested that "agencies must determine high political determination, make great efforts, and take drastic actions in organizing the implementation of this important Project. This is not only the work of Ho Chi Minh City and Da Nang but also the responsibility of the whole country, so the entire political system must participate in the implementation. The contents of the Project need to be implemented drastically, synchronously, consistently, in the spirit of strong innovation to make a breakthrough; agencies from the central to local levels must coordinate synchronously and closely; implement the assigned tasks on schedule and on schedule".

Immediately afterwards, to implement the Politburo's conclusion, on December 31, 2024, the Government issued Resolution No. 259/NQ-CP approving the Action Plan for the implementation of the construction of a regional and international financial center in Vietnam. In which, 49 groups of tasks and specific solutions were assigned to 12 ministries, branches, and localities to take charge of implementation, associated with output products to form a legal framework and prepare the foundation conditions for the development of financial centers in Vietnam. In particular, focusing on 5 key points: (i) Developing modern financial infrastructure, promoting the construction of a leading payment, depository and financial transaction system; (ii) Attracting international talent, creating a remuneration mechanism, an attractive living and working environment to attract the world's leading financial experts; (iii) Promote financial innovation, develop new financial instruments such as green finance, financial technology (fintech), and financial risk management; (iv) Expand international integration, cooperate with global financial institutions, participate in international financial standards; (v) Protect financial security, strengthen supervision and risk management, and ensure financial system stability.

At the same time, the Prime Minister signed and issued Decisions to establish and approve the Regulations on the operation of the Inter-sectoral Steering Committee on Regional and International Financial Centers to unify orientations, make major decisions, and coordinate to ensure smooth and consistent operation of financial centers in accordance with the direction of the Politburo. The Head of the Steering Committee is Prime Minister Pham Minh Chinh.

To continue implementing the Politburo's conclusion on developing a regional and international financial center in Vietnam, the Ministry of Planning and Investment proposes a number of key tasks and solutions that need to be focused on immediately in 2025.

In particular, for ministries, branches and central agencies, it is recommended to proactively coordinate with the Ministry of Planning and Investment and localities to soon complete the draft Resolution of the National Assembly on the development of regional and international financial centers in Vietnam. At the same time, proactively propose necessary policies to ensure the competitiveness of financial centers in Vietnam, as well as accompany localities in the process of developing and operating financial centers.

For Ho Chi Minh City and Da Nang, there are two areas of work that need to be focused on: Allocating resources, preparing basic conditions and creating favorable conditions for the development of Financial Centers, especially resources in terms of infrastructure, human resources, institutions, business investment environment, living environment...; Mobilizing, approaching and attracting strategic investors and financial institutions to invest in the Financial Centers of localities.

For international partners, it is recommended to support ministries, branches and localities in researching and learning international experiences in the process of building and operating financial centers. In addition, it is recommended to support proposals and recommendations on specific policies and orientations for policy groups in the Project, contributing to helping the Vietnamese Government ensure the breakthrough of financial centers in Vietnam. Support the mobilization of investment resources and the development of financial centers in Vietnam.

“The Ministry of Planning and Investment, in its assigned role as the presiding agency, pledges to continue to closely coordinate with ministries, branches, localities and international partners, effectively performing its coordination responsibilities to complete the National Assembly Resolution, promoting the process of building and developing regional and international financial centers as directed,” Minister Nguyen Chi Dung emphasized, and at the same time believes that with the strong direction of the Party, State and Government leaders, the determination and consensus of ministries, branches, localities and the coordination of domestic and foreign partners, the financial centers in Ho Chi Minh City and Da Nang City will not only be symbols of Vietnam's prosperity but also contribute positively to the stability and development of the global financial system.

Source: https://thoibaonganhang.vn/phat-trien-trung-tam-tai-chinh-tai-tp-ho-chi-minh-va-da-nang-phan-anh-khat-vong-va-dap-ung-yeu-cau-hoi-nhap-159587.html