Building a "playground" for international financial investors

The project to develop a regional and international financial center is being actively implemented to create a breakthrough for the economy.

Ho Chi Minh City is making efforts to soon complete the Project to Build the Vietnam International Financial Center in the City.

Building a “playground” for international investors

A meeting to discuss the development of a regional and international financial center in Vietnam was held yesterday (July 23). At this meeting, the Draft Master Plan for the Development of a Regional and International Financial Center in Vietnam – a framework plan, implemented by the Steering Committee for the Development of a Regional and International Financial Center Project – was discussed.

Along with that, two other drafts - Draft Project on Building Vietnam International Financial Center in Ho Chi Minh City and Draft Project on Building Da Nang City into a regional financial center - were also placed on the table of representatives of ministries, branches and localities attending the meeting.

These are just initial sketches, but according to Deputy Minister of Planning and Investment Nguyen Thi Bich Ngoc, although the financial center is a model that has been developed in many countries, for Vietnam, this is a new and complicated issue. Therefore, the selection of the model and method of building a financial center needs to be done on the basis of selectively absorbing international lessons.

The Draft Project also clearly states that the consistent principle is that “the financial center must be a ‘playground’ for international financial investors, with common rules compatible with international practices, such as operating mechanisms, ecosystem development, incentive mechanisms, etc., but at the same time must be suitable for Vietnam’s conditions, in which national interests are given top priority.”

For that reason, when developing the overall project and soliciting opinions from ministries and branches, the Ministry of Planning and Investment - as a member of the Steering Committee - believes that it is necessary to analyze, evaluate and compare the contents of benefits and risks of a financial center, the necessary and sufficient conditions for forming a financial center and assess the impact of proposed policy mechanisms for this "playground".

Similarly, the consistent view is that, by building a financial center, Vietnam will form a region with its own, superior, and unique institutions to encourage and attract international financial investors. However, there are three basic principles set forth for these policies. Those are policies that are clear, consistent with international practices, and have been verified, then they will be applied; policies that are unclear, but international practices are still being applied and are under control, then they will be applied on a pilot basis and will be legalized later; and contents that affect national defense, security, and national interests (such as anti-money laundering, transfer pricing, tax evasion, etc.) will not be applied.

Basically agreeing with the above proposals, Mr. Ky Minh, Vice Chairman of the People's Committee of Da Nang City, said that in order to develop international and regional financial centers in Vietnam, there must be breakthrough incentive policies to attract strategic investors, investors who play a leading role in development. Both Mr. Ky Minh and Mr. Nguyen Van Dung, Vice Chairman of the People's Committee of Ho Chi Minh City, said that the two cities will make efforts to soon complete the projects and submit them to competent authorities for consideration. Besides the framework project, these are two projects that play an important role in the formation and development of financial centers in Vietnam.

Don't miss the "golden opportunity"

The Ministry of Planning and Investment has been making efforts to create a “playground” for international financial investors over the past time. Minister of Planning and Investment Nguyen Chi Dung is one of the pioneers who proposed the construction and development of a regional and international financial center in Vietnam.

The consistent view is that, by building a financial center, Vietnam will form a region with its own, superior, and unique institutions to encourage and attract international financial investors.

“Vietnam is in a golden, once-in-a-millennium opportunity to establish an international financial center in Ho Chi Minh City and Da Nang,” Minister Nguyen Chi Dung has repeatedly emphasized this.

Not only Minister Nguyen Chi Dung, international investors have also repeatedly affirmed Vietnam's position and role in the global financial flow. According to Mr. Dominic Scriven, Chairman of Dragon Capital, promoting the development of a financial center is a "golden opportunity" for Vietnam, an opportunity to attract both indirect and direct investment to promote economic development.

“The development of an international financial centre in Vietnam is a game-changing initiative,” said Mr. Denzel Eades, Vice Chairman of the British Business Group in Vietnam.

In fact, Vietnam has many favorable conditions to develop a financial center. In addition to the stable macroeconomic and political factors, it is important that Vietnam has a favorable geographical location, high connectivity; has a different time zone from the 21 largest financial centers in the world associated with a strategic geo-economic position; has an increasingly improved economic scale and level of financial market development, attracting the attention of many investors, especially foreign investors participating in the financial market, including large investors such as Dragon Capital, JP Morgan, etc.

“We have many advantages. Becoming an international financial center will bring huge opportunities for the country,” said Minister Nguyen Chi Dung, emphasizing that it is necessary to act immediately so as not to miss the opportunity.

In order not to miss this golden opportunity, recently, Minister Nguyen Chi Dung himself has visited many places to learn about financial center models in other countries. Recently, Deputy Minister Nguyen Thi Bich Ngoc also led a delegation from the Ministry of Planning and Investment to visit and work in the United Arab Emirates (UAE). During the trip, the delegation had working sessions with the Dubai Financial Center (DIFC), the Abu Dhabi Financial Center and a number of organizations and experts with experience in developing financial centers.

And at these working sessions, Deputy Minister Nguyen Thi Bich Ngoc asked the UAE to share lessons of success and failure, necessary and sufficient conditions for forming a financial center, management models, suggestions for Vietnam, as well as opportunities for cooperation in developing a financial center in Vietnam.

These are important preparation steps so that Vietnam does not miss the golden opportunity.

Source: https://baodautu.vn/xay-san-choi-cho-nha-dau-tu-tai-chinh-quoc-te-d220661.html