Building an international financial center is an important factor towards the 100-year goal.

British Ambassador to Vietnam Iain Frew - Photo: VGP

Deputy Prime Minister Nguyen Hoa Binh recently visited and worked in three European countries: the UK, Luxembourg and Germany from March 16-25, to promote cooperation and learn about models for building, operating and developing international financial centers.

The Government E-newspaper had an interview with the British Ambassador to Vietnam Iain Frew about the importance of the visit, as well as the opportunities and challenges for Vietnam in developing international financial markets.

Deepening the strategic partnership with the UK

How does the Ambassador evaluate the visit to the UK by Permanent Deputy Prime Minister Nguyen Hoa Binh?

Ambassador Iain Frew: The recent visit to the UK by Permanent Deputy Prime Minister Nguyen Hoa Binh is an important milestone in promoting the Vietnam - UK Strategic Partnership as well as for Vietnam's development.

During the visit, Permanent Deputy Prime Minister Nguyen Hoa Binh met and worked with senior British leaders, including British Deputy Prime Minister Angela Rayner, Minister of State for Finance at the Treasury Lord Livermore, Speaker of the House of Commons Lindsay Hoyle, former Prime Minister Tony Blair and former Mayor of the City of London Vincent Keaveny.

The delegation also met and discussed with the Bank of England, the London Stock Exchange Group and many organizations participating in the financial market.

One of the highlights of the visit was Deputy Prime Minister Nguyen Hoa Binh’s participation in a seminar on the establishment of an international financial center, organized by TheCityUK. The event was attended by many leading UK businesses in the fields of finance, banking and insurance such as Standard Chartered, HSBC, Prudential, along with prestigious law firms such as Michelmores and A&O Shearman.

During these high-level meetings, Permanent Deputy Prime Minister Nguyen Hoa Binh emphasized Vietnam's commitment to deepening the Strategic Partnership with the UK and promoting deeper cooperation in the Asia-Pacific region.

Trade turnover between the two countries is expected to reach US$8.4 billion by 2024, up 18% compared to 2023. Vietnam and the UK have great potential to expand cooperation in many areas, including trade and investment, science, technology, education, healthcare, food processing, tourism and people-to-people exchanges.

The focus of the visit was to share experience and expertise in developing an international financial center in Ho Chi Minh City and a regional financial center in Da Nang.

Vietnam is recognized as one of the fastest growing economies in the world. Vietnam has set an ambitious goal of becoming a high-income country by 2045 by enhancing its role in global value chains and leveraging digitalization to drive economic growth.

Developing financial centres is seen as a key element in achieving these goals. As home to one of the world’s oldest and most successful international financial centres, the UK can support Vietnam in this journey. We look forward to working more closely with the Government of Vietnam to share expertise and best practice, helping Vietnam achieve sustainable growth.

Marking an important milestone in Vietnam's economic development

Ambassador, please tell us the basic conditions for establishing and developing international financial centers in Vietnam?

Ambassador Iain Frew: Since 2022, TheCityUK, appointed by the UK Government, has been working with stakeholders in the public and private sectors in Vietnam to conduct in-depth analysis and share experiences to support Vietnam in the process of building two TTTCs.

During the recent visit of Deputy Prime Minister Nguyen Hoa Binh, TheCityUK officially released the High-Level Recommendation Report on Vietnam’s International Financial Market. Key recommendations from this report include:

Political Support: Stable and high-level support from the Government is essential to ensure the success of TTTC.

Phased development: TTTC should be developed in phases, allowing the Government to choose the pace that is consistent with its long-term strategy.

Domestic presence: TTTC needs a significant domestic presence to benefit the entire economy.

Complementary reforms: TTTC should complement and support ongoing reforms in the national financial sector.

Hybrid Model: Initially, a hybrid model should be adopted, which can be gradually developed into a complete model as needed.

Focus areas: Initial priority areas include green finance, fintech and capital and commodity market development.

Governance: Establish a legal framework based on international best practices, but still comply with Vietnamese law.

Infrastructure and talent: Develop high-quality infrastructure and create an environment that attracts highly skilled professionals.

Can you share about the opportunities and challenges for Vietnam in building TTTC?

Ambassador Iain Frew: The development of international financial markets comes with a number of potential challenges, such as the need to undertake significant legal and institutional reforms, as well as the importance of capacity building and expertise.

If successful, TTTC has the potential to leverage Vietnam’s professional and business services sector, promote integration into global value chains, and accelerate digitalization to drive economic growth.

The financial market is also expected to create more job opportunities in the economy as foreign direct investment (FDI) flows increase, improve access to finance, support the development of a green economy and make Vietnam a leading financial market in the region.

Vietnam’s journey to build an international financial market marks an important milestone in its economic development. With strategic planning, strong support from the Government and international cooperation, Vietnam is gradually realizing its Vision 2045 and its goal of becoming a high-income country.

The TTTC Initiative not only promises to boost economic growth but also demonstrates Vietnam's commitment to sustainable development and international integration.

UK pledges to support Vietnam in developing financial services

Could the Ambassador share about the UK's support for Vietnam in developing IT centers in the coming time?

Ambassador Iain Frew: Since 2022, the UK Government has actively supported Vietnam in designing and reviewing policies and regulations related to international financial information, as well as implementing capacity building programs for Vietnamese Government officials.

The project provided practical expertise from leading experts and advised Vietnamese authorities on the most suitable TTTC model, and made recommendations on the areas of expertise that TTTC should focus on.

The project has now entered its third phase, supporting the Vietnamese Government in preparing and implementing the Politburo’s decision on developing an international financial center in Ho Chi Minh City and a regional financial center in Da Nang. The expert team is currently assisting the Government in developing important legal regulations.

As part of the project, TheCityUK, in collaboration with the Moller Institute at Churchill College, University of Cambridge, has developed and delivered two advanced training courses on FDI, to help the Vietnamese Government address investor concerns and build attractive commercial value in key sectors of the economy.

In this new era of growth, the UK has great prospects for cooperation with Vietnam's public and private sectors in the areas of financial and professional services, energy transition, education, health, infrastructure and digital transformation.

Each sector plays an important role in attracting investment, expanding financial inclusion, developing climate-resilient infrastructure, and improving the quality of life in Ho Chi Minh City and Da Nang.

The UK is committed to supporting Vietnam in this ambitious endeavour, providing expertise and training to ensure the successful development of the TTTC./.

Thuy Dung

 

Source: https://baochinhphu.vn/xay-dung-trung-tam-tai-chinh-quoc-te-la-mot-yeu-to-quan-trong-huong-den-muc-tieu-100-nam-102250325163423978.htm