Vietnam Discusses Draft Projects for Regional and International Financial Centres
Hanoi, The Gulf Observer: The Steering Committee for the Construction of Regional and International Financial Centres has discussed a comprehensive draft project aimed at developing financial centres in Vietnam. The discussions took place this week, focusing on two key drafts: the establishment of the Vietnam International Financial Centre in Ho Chi Minh City and the development of Da Nang into a regional financial centre.
Nguyễn Thị Bích Ngọc, Deputy Minister of Planning and Investment, emphasized that while the concept of financial centres is well-established globally, it remains a new and complex challenge for Vietnam. “Choosing the model and method of constructing the financial centre needs to be based on selectively learning from international experiences,” she noted.
The draft plan outlines that the guiding principle for these financial centres is to create a “playground” for international financial investors. This involves developing common rules compatible with international practices, including operational mechanisms, ecosystem development, and incentive mechanisms, all while prioritizing Vietnam’s national interests.
Key policies proposed in the draft plan are based on three principles:
- Clarity and Consistency: Applying policies that are clear, internationally consistent, and proven.
- Pilot and Legislate: Testing unclear but internationally used policies before legislating them.
- National Security: Ensuring aspects affecting national defense, security, and interests (such as anti-money laundering, transfer pricing, and tax evasion) are not compromised.
Kỳ Minh, Vice Chairman of the Đà Nẵng People’s Committee, highlighted the need for breakthrough incentive policies to attract strategic investors who can lead the development of these financial centres. The Ministry of Planning and Investment has been proactive in creating a conducive environment for international financial investors, with Minister Nguyễn Chí Dũng being a key advocate for this initiative.
“Việt Nam is at a once-in-a-lifetime golden opportunity to establish an international financial centre in HCM City and Đà Nẵng,” Minister Dũng stated. This sentiment was echoed by Dominic Scriven, Chairman of Dragon Capital, who described the development of a financial centre as a “golden opportunity” for Vietnam to attract both indirect and direct investment, thereby boosting economic development.
Vietnam possesses several favourable conditions for developing financial centres, including stable macroeconomic and political conditions, a strategic 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. These factors have garnered the interest of numerous investors, including major foreign players such as Dragon Capital and J.P. Morgan.
