Việt Nam discusses plans to establish international financial centres

The Dragon Bridge in the central city of Đà Nẵng. The city is striving to complete the proposal for establishing the Việt Nam International Financial Centre. — VNA/VNS Photo

HÀ NỘI — The draft comprehensive project on developing regional and international financial centres in Việt Nam, a framework project by the Steering Committee for the Construction of Regional and International Financial Centres, was discussed on this week.

Two other drafts – the draft project for establishing the Việt Nam International Financial Centre in HCM City and the draft project for turning Đà Nẵng into a regional financial centre – were also presented to representatives from various ministries, sectors and localities.

Nguyễn Thị Bích Ngọc, Deputy Minister of Planning and Investment, said that while financial centres are a model developed in many countries, it is a new and complex issue for Việt Nam. Therefore, choosing the model and method of constructing the financial centre needs to be based on selectively learning from international experiences.

The draft plan highlights that the guiding principle is that: “The financial centre must be a ‘playground’ for international financial investors, with common rules compatible with international practices, including operational mechanisms, ecosystem development and incentive mechanisms, while also being suitable for Việt Nam’s conditions, prioritising national interests.”

By establishing an international financial centre, Việt Nam aims to create a distinct institutional area to attract international financial investors.

However, three basic principles are proposed for these policies. First, policies that are clear, internationally consistent and proven should be applied. Second, unclear policies that are still in international use and manageable should be piloted and later legislated. Third, aspects affecting national defence, security and national interests (such as anti-money laundering, transfer pricing, and tax evasion) should not be applied.

Kỳ Minh, Vice Chairman of Đà Nẵng People’s Committee, said that to develop international and regional financial centres in Việt Nam, breakthrough incentive policies are needed to attract strategic investors who can lead development.

The Ministry of Planning and Investment has been working hard to create a space for international financial investors. Minister Nguyễn Chí Dũng is one of the pioneers in proposing the construction and development of regional and international financial centres in Việt Nam.

“Việt Nam is at a once-in-a-lifetime golden opportunity to establish an international financial centre in HCM City and Đà Nẵng,” Dũng added.

Dominic Scriven, Chairman of Dragon Capital, noted that promoting the development of a financial centre is a ‘golden opportunity’ for Việt Nam, attracting both indirect and direct investment to boost economic development.

Việt Nam has favourable conditions for developing a financial centre. Besides maintaining stable macroeconomic and political conditions, Việt Nam has a favourable geographical location with high connectivity, a different time zone from the 21 largest global financial centres, strategic geopolitical positioning and an improving economic scale and financial market development. This attracts the interest of many investors, including major foreign investors such as Dragon Capital and J.P. Morgan. — VNS