A series of competitive and superior mechanisms and policies are being built to promote the development of regional and international financial centers in Vietnam. Are these mechanisms attractive enough?
A series of competitive and superior mechanisms and policies are being built to promote the development of regional and international financial centers in Vietnam. Are these mechanisms attractive enough?
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| Building a regional and international financial center in Vietnam is an inevitable and objective requirement in the new development stage. Photo: Le Toan |
Build superior mechanisms
The draft Resolution of the National Assembly on the establishment and operation of financial centers in Vietnam has been discussed and solicited for public opinion in recent days. Last weekend, Deputy Prime Minister Nguyen Hoa Binh chaired a meeting with a number of ministries and functional agencies on this content.
“We are drafting this resolution to build superior mechanisms and policies, but there must be control. We must clarify the content of each group of policies that we are planning to build. There must be a specific assessment of the impacts of the policies on the economy,” Deputy Prime Minister Nguyen Hoa Binh said at the meeting.
The draft Resolution developed by the Ministry of Planning and Investment proposes many competitive and superior mechanisms and policies, including mechanisms and policies on anti-money laundering, foreign exchange transactions and management... There is also a proposal on implementing a controlled testing policy (sandbox) for business models applying technology in the financial sector (fintech), including trading floors for crypto assets.
If the proposal is passed, it is likely that transactions in crypto assets and cryptocurrencies in the financial center will be carried out from July 1, 2026…
In addition to the above proposals, the Draft Resolution of the National Assembly also mentions a series of preferential policies to develop the capital market. For example, green financial activities in the financial center are given incentives as for sectors in the investment incentive list. Foreign banks that establish branches or move their headquarters and representative offices to the Vietnamese financial center are also entitled to similar incentives...
Tax incentives are also proposed. Not only corporate income tax incentives, but also an important proposal is that investment projects in priority development sectors of the financial center will enjoy a tax rate of 10% throughout the project's life, exempted for 4 years and reduced by 50% for the next 9 years, while managers, scientists and experts with high professional qualifications will be exempted from personal income tax...
In addition, regulations on exit, entry, travel and temporary residence... have also been proposed, with the viewpoint of being open and transparent...
According to Deputy Minister of Planning and Investment Nguyen Thi Bich Ngoc, the development of a National Assembly Resolution on the establishment and operation of a financial center in Vietnam is extremely necessary to successfully form a regional and international financial center; help Vietnam connect to the global financial market; attract foreign financial institutions, create new investment resources, promote existing investment resources; and take advantage of opportunities to shift international investment capital flows.
“We have the right to regulate, but people have the right not to enter,” said Deputy Minister of Planning and Investment Nguyen Thi Bich Ngoc, reaffirming that there must be superior and competitive mechanisms and policies to attract investment and develop an international financial center.
“For example, with the preferential tax policy, this is a policy that many international financial centers in the world are also applying, in order to create a superior mechanism, aiming to attract priority industries for development of the financial center,” said Deputy Minister Nguyen Thi Bich Ngoc.
Looking for strategic investors
One of the important issues for developing a regional and international financial center in Vietnam is probably how to find strategic investors. That is the reason why in the Draft Resolution, the Drafting Committee proposed separate regulations for strategic investors.
For example, strategic investors have the right to directly select investors to implement investment projects in the financial center. In case there are 2 or more investors interested in proposing, they will be given priority in selection.
Regarding the management of digital currency, the General Secretary emphasized that we must not be slow, not lose opportunities, not create distance or distinction with new financial forms, as well as modern transaction methods.
In addition, strategic investors are allowed to participate in business investment, development, management and operation of projects in the financial center in forms in accordance with the provisions of law and the Resolution; are provided with investment support services, support for site clearance for other investors in the financial center...
In return, strategic investors must ensure financial capacity, experience, support in mobilizing resources to implement planning, invest in infrastructure development and attract investment into the financial center...
“Building policies for strategic investors is very important to attract long-term capital flows, improve competitiveness and promote sustainable economic development,” the Ministry of Planning and Investment explained, adding that because Vietnam has no experience in building an international financial center, it is necessary to attract strategic investors to accompany the implementation process.
The report of the Ministry of Planning and Investment related to this content also clearly stated that in order to attract the attention of leading corporations in the financial sector as strategic investors, there needs to be preferential investment policies and specific, outstanding implementation mechanisms to be attractive enough for them. “Through the presence of large corporations as strategic investors, we will attract businesses, financial and non-financial investors in the global system to Vietnam…”, the leader of the Ministry of Planning and Investment explained.
Having a strategic investor, it can be said, is an important “key” to building and developing a financial center. And this is also the “key” to the development of the capital market and the Vietnamese economy in the future.
Regarding this story, Mr. Dinh Tuan Minh (Center for Research on Market Solutions for Economic and Social Issues - MASSEI) said that in a market economy, the key to whether capital actually flows in and stays or not is the development prospects of the economy.
“If we are confident that Vietnam will become a developed economy in the next 15-20 years, we need to create a modern capital market with the fewest barriers, but still ensuring the safest ownership rights, for capital to flow from one investor to another, from one type of asset to another, from abroad to the country and from the country to abroad,” said Mr. Dinh Tuan Minh.
Source: https://baodautu.vn/xay-co-che-vuot-troi-cho-trung-tam-tai-chinh-d249123.html
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