Finding a suitable model for an international financial center in Vietnam - Lang Son Newspaper and Radio and Television

On April 16, in Hanoi , Banking Times organized a seminar on "International experience and the role of the banking system in the financial center" with the participation of nearly 100 delegates including policy makers, international and domestic experts, representatives of prestigious domestic and foreign financial institutions,...

Speaking at the opening of the seminar, Editor-in-Chief of Banking Times Le Thi Thuy Sen said that the construction of international financial center has been identified by the Party, State, National Assembly and Government as one of the institutional breakthroughs, a policy decision to liberate resources, promote growth model transformation associated with economic restructuring, to improve productivity, efficiency and competitiveness, bringing Vietnam to participate in a higher level in the global economic value chain.

Implementing the orientation of the Party and State, management agencies, financial-banking organizations and the expert community are working together to build a strategic vision for financial center international in Vietnam. In that process, the banking system - as the lifeblood of the economy - is identified as a pioneering force, both creating a stable foundation and promoting innovation in the national financial ecosystem.

Editor-in-Chief of Banking Times Le Thi Thuy Sen delivered the opening speech at the seminar.

“There is no model that is best for any country because the choice of model depends on the economic and social conditions of each country. Therefore, Vietnam also aims to build an international financial center in accordance with current policies and its own socio-economic conditions. We believe that with the participation of nearly 100 experts, policy makers, and representatives of prestigious domestic and foreign financial institutions, the event will be a gathering place for multi-dimensional perspectives, profound international experiences, and many initiatives in building a regional and international financial center in Vietnam,” Ms. Le Thi Thuy Sen affirmed.

Legal framework ensures safety and efficiency

At the seminar, Director of the Department of Credit Institutions Safety ( State Bank of Vietnam ) Nguyen Duc Long said: The policy of establishing an international financial center (IFC) is a major and important policy and also a difficult and complicated issue for Vietnam. It is possible to identify many different ways and conditions to establish an international financial center in countries, but for Vietnam, establishing an IFC is even more difficult and different from other countries, not only in terms of population size, geography, etc., but also in terms of legal framework.

“Long-standing international financial centers in developed countries have open legal corridors, and countries with lower starting points also have more open legal zones. In Vietnam, we have strict regulations to ensure macroeconomic safety. For example, regarding capital transaction regulations, liberalization of capital flows is a major condition for the establishment of the IFC. Currently, Vietnam has strict regulations on this issue,” Mr. Nguyen Duc Long emphasized.

Director of the Department of Credit Institutions Safety (State Bank of Vietnam) Nguyen Duc Long shared his opinion at the seminar.

According to Mr. Long, our international commitments with trade partners still have requirements on market protection. In the current conditions of Vietnam, opening more financial institutions and commercial banks is very strict. If we compare according to such requirements, if we have more incentives on conditions for opening financial institutions, it is also a problem.

“How to create a legal framework to ensure the financial center operates effectively but still ensures macroeconomic safety. In an international financial center, what will financial institutions do? We understand that traditional banking activities will not be much but will be oriented towards new banking activities, according to international practices. Along with that, the management of operational safety is also raised,” Mr. Long suggested another issue. Currently, the direction is that financial institutions when established in a financial center must perform financial reporting according to international standards, according to safety regulations according to international practices. For Vietnamese financial institutions established in a financial center, in principle, they will also apply international practices, issue new circulars on capital safety ratios, and comply with advanced Basel II.

Special incentive policies are needed to attract investment.

Meanwhile, Master Luu Anh Nguyet, Deputy Head of the Financial Market Development Department, Institute of Economic and Financial Strategy and Policy (Ministry of Finance) said that special preferential policies are needed to attract investment for international financial center in Vietnam.

According to Ms. Nguyet, the establishment of an international financial center is a city/region that plays a key role in providing international financial services (banking, insurance, securities, etc.). This center will operate on a transparent legal foundation, developed infrastructure, and a stable political environment. There are differences between domestic financial centers and international financial centers, which are classified by criteria such as scope of operations, role, service users, level of market openness, level of internationalization, infrastructure and financial services, impact on the economy, and potential risks.

Master Luu Anh Nguyet said that there should be special incentive policies to attract investment for the international financial center in Vietnam.

“Currently, there are many international financial centers located geographically close to Vietnam such as Singapore, Hong Kong and Shanghai (China),… To take advantage of the benefits that international financial centers are expected to bring, it requires specialized regulations and connections between domestic and international financial centers. international financial center. This is a difficult problem for the management agency," said Ms. Luu Anh Nguyet.

In addition, Ms. Nguyet also noted that the first thing to do when wanting to build an international financial center is to perfect a flexible and modern institution. Specifically, building a transparent legal framework, in line with international practices, allowing for testing of new models such as fintech and digital platforms. At the same time, applying the sandbox model like Singapore with a fast licensing process and good investor protection. Along with that, it is necessary to strengthen risk monitoring according to international standards, ensuring market stability and transparency. Next is developing financial and technological infrastructure.

Regarding tax policy, it is necessary to exempt/reduce corporate income tax and personal income tax for organizations and individuals operating in international financial centers. It is necessary to simplify administrative procedures, reduce registration and licensing procedures for foreign financial institutions; develop high-quality human resources, cooperate with universities and research institutes to provide in-depth training in finance, technology, data analysis, etc. In addition, it is necessary to attract international experts in the fields of banking, finance, fintech; apply special visa policies for global talents operating in the field. digital finance

Source: https://baolangson.vn/tim-mo-hinh-phu-hop-cho-trung-tam-tai-chinh-quoc-te-tai-viet-nam-5044227.html