Building a financial center in Vietnam with its own identity

Ho Chi Minh City Financial Center is oriented to develop with its own identity, taking advantage of Vietnam's unique strengths.

This is a recommendation made by many domestic and foreign experts at the Conference on building a financial center in Vietnam on March 28.

In the discussion and experience sharing on developing TTTC in the world, Mr. Andrew Oldland, Head of the International TTTC Working Group, TheCityUk Organization, said that one of the important things is to adjust the TTTC construction model to suit the context of Vietnam.

Mr. Andrew Oldland's research team has helped build reports to implement the financial market in Vietnam such as building infrastructure, establishing an executive agency... The working group also helps Vietnam assess how the economy is different from other economies that have established financial markets; clearly identify innovation trends in financial markets, differences in financial trends compared to some countries that have established financial markets, promote green finance...

Agreeing with the above viewpoint, Mr. Rich McClellan, senior advisor on financial market development, former Vietnam Country Director of the Tony Blair Institute, said that Vietnam needs to take advantage of its strengths when building a financial market such as economic development, geopolitical position, annual growth in trade turnover...

Dr. Kuang Qu, Deputy General Manager of Planning and Development and Director of Sustainable Development Strategy, Bank of China, mentioned that the Shanghai Free Trade Zone has some more open mechanisms to facilitate international transactions, which is an important experience to suggest to Vietnam.

Deputy Minister of Finance Nguyen Thi Bich Ngoc said: Building a financial market in Vietnam needs to have its own identity, different from any other country. "We are considering researching the construction of an international financial market with its own identity, taking advantage of comparative advantages in economics, society and geopolitics. Different from the traditional model, we prioritize the application of modern technology such as fintech, blockchain, green finance...

Experts discuss the development of HCMC's financial center - Photo: VGP/Le Anh

Deputy Minister Nguyen Thi Bich Ngoc also pointed out the advantages that Vietnam has, which is the "open economy". Vietnam has strongly integrated into the international economy, signed 17 FTAs ​​with partners around the world, this is an opportunity for Vietnam to develop special types of finance "trade finance". Vietnam also has favorable conditions to build a financial market based on the export of agricultural products and traditional goods, and can build commodity exchanges based on blockchain.

At the conference, experts also recommended that Vietnam is an industrial and commercial country, so it can promote attracting green finance for projects requiring large capital, as well as support small and medium enterprises to access preferential "green" capital sources through the TTTC. To do this, the TTTC needs to build and complete a green legal framework and a green portfolio according to international standards for its TTTC.

Experts also emphasized that the establishment of the Ho Chi Minh City Financial Center will develop with its own identity, taking advantage of Vietnam's unique strengths and being able to complement financial centers in the region.

According to the project to develop the international financial market in Ho Chi Minh City, it includes 3 components: the monetary market and banking system; the capital market and the derivatives market.

In particular, Ho Chi Minh City chooses to break through new financial services: Fintech and digital banking; connecting Fintech and startups in other business fields. Along with that is the green finance sector: Implementing green financial mechanisms and products to support the city's transition to a sustainable economy and Vietnam's goal of achieving net zero emissions by 2050.

Finally, the commodity exchange: Forming and developing the Ho Chi Minh City Commodity Exchange linked to the agricultural product market in the Mekong Delta and the Central Highlands, and linked to the market of raw materials for production and industrial processing in the Southeast, connecting with global commodity exchanges and investors.

Le Anh

Source: https://baochinhphu.vn/xay-dung-trung-tam-tai-chinh-o-viet-nam-voi-ban-sac-rieng-102250328170252718.htm