According to Associate Professor, Dr. Nguyen Dang Bang, Judge Business School, Cambridge University, Vietnam has the foundation and opportunity to successfully build an international financial center.
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| Associate Professor, Dr. Nguyen Dang Bang, Judge Business School, University of Cambridge. (Source: FTU) |
According to Associate Professor Nguyen Dang Bang, although the current scale of Vietnam's economy is not large, if it can maintain its current good growth momentum, the formation of an international financial center in Vietnam is an objective necessity when the scale of the economy develops.
Cambridge University experts believe that with the goal of building an international financial center that not only serves the capital and financial needs of Vietnam but also serves the world, Vietnam has the foundations to achieve this goal.
Firstly, Vietnam has a very open economy, currently considered one of the five most open economies in the world, with an import-export price index/Gross Domestic Product (GDP) of more than 1.5 times. An open economy leads to open financial trade, which is the basis and good condition for the development of an international financial center.
Second, Vietnam has a favorable geographical location, located in Asia, between Southeast Asia and East Asia, where the world's fastest economic growth rate is. Associate Professor Nguyen Dang Bang said that this is a great advantage as Vietnam is located in a dynamic center, with a huge demand for finance and financial services, and most of the products and services of an international financial market are now available in the region.
Third, Vietnam is a relatively large country with a population of more than 100 million people with a young population and an important domestic market. According to Associate Professor Nguyen Dang Bang, this is a good foundation and an advantage compared to some current financial centers in the region, such as Singapore, the largest international financial center in Asia, a small country with only about 6 million people and an area equivalent to Phu Quoc Island.
Finally , Vietnam has a geopolitical advantage in the region to develop an international financial center that not every country has. Associate Professor Nguyen Dang Bang pointed out that some countries with geopolitical risks in the region find it difficult to attract international investors or those who own a lot of assets.
Associate Professor Nguyen Dang Bang noted that despite having good foundations, building an international financial center in Vietnam also faces many major challenges. Associate Professor Nguyen Dang Bang pointed out the basic conditions for forming and developing an international financial center that Vietnam currently lacks or is weak in and will have to invest to meet these conditions.
The first condition is the legal foundation that regulates the operation of an international financial center, one of the most complex foundations that not many countries in the world can do. He said that one of the greatest assets of the UK, which makes London one of the largest international financial centers in the world, is the country's thousand-year-old legal system, with very high stability and at the same time very high openness, helping to strongly and effectively protect investors' assets and punish violations of the law in the international financial market in London.
Associate Professor Nguyen Dang Bang pointed out that the biggest function of the international financial market management agency is to make and implement laws to regulate, rather than hinder, market operations. He emphasized that currently, Vietnam has almost no experts in this field and also has no experience in regulating this issue. Therefore, Vietnam must immediately prepare a legal foundation ready for when the financial market comes into operation. In the early stages, when there is no time to train and organize the market, it will be forced to hire experts despite the high cost.
The second condition is to ensure local human resources to serve the operations of the international financial center. This human resource must be globally competitive in the financial industry, including three pillars: finance; technology related to finance, including computer science and data science; and human resources.
In particular, ensuring financial human resources is a huge challenge, emphasizing the importance of organizing systematic and scientific training to ensure the output is internationally competitive personnel. According to him, to build an international financial center, Vietnam must at least reach the level of Singapore, with the country's top 3 universities all in the list of the 50 best finance faculties in the world, and the top 8 best finance faculties in Asia.
The third condition is to ensure hardware infrastructure. Associate Professor Nguyen Dang Bang said that Vietnam is doing faster, even better than many countries, in developing hardware infrastructure such as Internet connection, traffic connection, airport connection, etc. However, he emphasized that hardware infrastructure must include schools and hospitals that meet international standards, because a financial center serving international customers must ensure good basic infrastructure such as healthcare and education.
Associate Professor Nguyen Dang Bang also emphasized that to become an international financial center, Vietnam must be able to attract world talent. In addition to having good, competitive local personnel, an international financial center must attract world talent in the financial industry, fintech business owners, bankers and investors to Ho Chi Minh City as a financial center.
According to this expert, Ho Chi Minh City has an advantage in attracting international talent and investors, with its cultural appeal, long history and rich social life, compared to Singapore, the biggest competitor in the region in developing an international financial center. He believes that the living environment plays an important role in investors' decision to choose where to live and work.
Source: https://baoquocte.vn/chuyen-gia-viec-hinh-thanh-mot-trung-tam-tai-chinh-quoc-te-o-viet-nam-la-tt-yeu-khach-quan-307803.html
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