Building a financial center in Vietnam: There should be specific policies for success

Mr. Pham Van Hoa, National Assembly Delegate (Dong Thap delegation), Member of the National Assembly's Law Committee

On November 15, 2024, the Politburo issued Notice 47-TB/TW on the establishment of a regional and international financial center in Vietnam. Accordingly, a comprehensive international financial center will be established in Ho Chi Minh City and a regional financial center in Da Nang city.

To implement this policy, on December 31, 2024, the Government issued Resolution No. 259/NQ-CP approving the Action Plan for the development of a regional and international financial center in Vietnam. Then, on March 5, 2025, the Government issued Resolution No. 42/NQ-CP on the proposal to develop a National Assembly Resolution on a financial center in Vietnam.

The Government e-newspaper had an interview with Mr. Pham Van Hoa, National Assembly delegate (Dong Thap delegation), member of the National Assembly's Law Committee to clarify the significance, opportunities and challenges for Vietnam in building financial centers.

In your opinion, what is the significance of building financial centers in Vietnam for Vietnam's economy?

National Assembly Deputy Pham Van Hoa : I fully support the policy of building a regional and international financial center in Vietnam. It can be said that this is an important step, demonstrating Vietnam's determination to deeply integrate into the regional and world economy.

Developing financial centers will help Vietnam improve its competitiveness and position in the regional and global financial markets.

Financial centers will help Vietnam attract investment capital from large financial corporations, investment funds and banks in the world. When the financial system develops strongly, the economy will have more momentum to grow, supporting businesses to access diverse and easier capital sources.

We can expect the development of the financial center to create a strong boost for the economy, aiming for double-digit growth as set.

In your opinion, why were the two cities of Ho Chi Minh City and Da Nang chosen to build international and regional financial centers?

National Assembly Deputy Pham Van Hoa : Choosing Ho Chi Minh City as a comprehensive international financial center and Da Nang as a regional financial center is a strategic decision.

Ho Chi Minh City is the largest economic center in the country, has a strong financial foundation, a developed banking system and is home to many large enterprises. The construction of an international financial center in Ho Chi Minh City will help the city maximize its role as an economic locomotive.

While Da Nang has advantages in terms of geographical location, infrastructure and convenient connections with regional economies, developing a regional financial center in Da Nang will not only help the city make a breakthrough but also create momentum to spread to the Central provinces.

In addition, Ho Chi Minh City and Da Nang have both had the National Assembly issue Resolutions on piloting a number of specific mechanisms and policies, so these two cities will have favorable conditions to build financial centers.

In your opinion, what are the challenges in the process of building these two financial centers? What are your suggestions for the construction of these two centers?

National Assembly Deputy Pham Van Hoa : Along with opportunities are challenges. One of the biggest challenges is perfecting the legal and institutional framework to create a favorable environment for financial centers to develop.

Currently, the legal system on finance, investment and capital markets still has many points that need to be improved to approach international standards. Building a transparent, stable and competitive legal corridor is an important factor to attract international financial institutions, bringing Vietnam's finance closer to international standards.

In addition, Vietnam will face competition from major financial centers in the region such as Singapore, Hong Kong (China) or Shanghai. These centers have a long history of development, modern infrastructure and attractive investment attraction policies. Therefore, Vietnam needs to build specific mechanisms, creating its own advantages to attract businesses and investment capital .

The three prerequisites are land, tax and administrative procedures. We need favorable conditions in accessing land to build financial and office buildings; tax exemptions in the first years and quick administrative procedures, creating a transparent and favorable investment environment.

In terms of financial and technological infrastructure, an international financial center needs a modern payment system, connected to the global financial market, as well as high-tech infrastructure to support financial transactions, fintech and e-commerce activities. Currently, Vietnam's financial and technological infrastructure is still in the process of development, requiring stronger investment to catch up with international trends.

In my opinion, telecommunications and technology infrastructure needs to be invested in more in the coming time and must be modern, advanced, and apply high technology such as artificial intelligence, big data, etc.

Another major challenge is developing highly qualified human resources in the fields of finance, banking, financial technology and investment management. Currently, the number of financial experts meeting international standards in Vietnam is not large. We need to promote training and attract domestic and foreign talent to meet the needs of financial centers.

We also need to take into account global economic and financial risks. The process of building a financial center is also affected by global economic and financial factors such as market fluctuations, interest rates, exchange rates and financial policies of major economies. Vietnam needs to have a flexible strategy to adapt to these fluctuations, while ensuring the stability of the domestic financial market.

Although Vietnam has made many reforms in administrative procedures, it still needs to continue to simplify the licensing and business registration process, as well as improve transparency and efficiency in state management. Reducing administrative barriers will help attract international investors and promote the development of financial centers.

Thank you very much!

Thu Giang (performed)