Establishing International Financial Centers in Ho Chi Minh City and Da Nang: A Proposal

National Assembly Discusses Draft Resolution on International Financial Center in Vietnam

On June 11, as part of the ongoing 9th session, the Minister of Finance, Nguyen Van Thang, presented to the National Assembly a draft resolution on the International Financial Center in Vietnam, under the authorization of the Prime Minister.

According to Minister Nguyen Van Thang, Vietnam is a bright spot in economic development and growth, with macroeconomic stability and attractive investment opportunities. The country is gradually gathering the necessary elements to develop a modern financial market, aiming to establish a financial center that can link with regional and global financial centers.

The draft resolution proposes specific and outstanding mechanisms and policies to attract international capital to serve the three strategic breakthroughs and traditional and new growth drivers (such as the digital economy, green economy, and innovation).

Additionally, it aims to develop high-end financial services and manage new markets dictated by reality (including digital assets and carbon credits); foster high-quality human resources; enhance Vietnam’s connectivity with the global economy and elevate its position in the global financial market; and contribute to the country’s economic development.

As per the draft resolution, the International Financial Center will be a geographically defined area established by the government in Ho Chi Minh City and Da Nang, focusing on a diverse ecosystem of financial and supporting services.

For the center in Ho Chi Minh City, the focus will be on developing the capital market in conjunction with asset management, fund management, insurance, stocks, bonds, fund certificates, and financial derivatives; evolving the banking system and monetary market products; establishing a sandbox for Fintech and innovation in the financial sector; forming specialized exchanges and new trading platforms; developing the commodity market and establishing a commodity exchange for physical commodities, derivatives, and connections with domestic and international physical commodity markets; and promoting regional supply chain services, logistics centers, and port transportation linked to the Free Trade Area in Ba Ria-Vung Tau.

Meanwhile, the center in Da Nang will focus on green finance and commercial finance, serving small and medium-sized enterprises, innovative enterprises, non-resident organizations and individuals (offshore financial services), cross-border trade related to Free Trade Areas, high-tech parks, open economic zones, and industrial parks; controlled experimentation with new models such as digital assets, digital currencies, digital payments, and transfers; attracting investment funds, remittance funds, and small and medium-sized fund management companies; and promoting startups providing financial solutions for consumption, tourism, trade, and logistics.

Minister Nguyen Van Thang also mentioned that there are 13 groups of specific policies applicable within the International Financial Center. These include foreign exchange, banking, finance, and capital market development policies; tax policies; entry, exit, residence, and labor policies for experts, investors, and employment and social security policies; land policies; construction and environmental policies; controlled experimentation policies for Fintech and innovation; field-specific incentives and policies for strategic investors; infrastructure development policies; export, import, and distribution policies for goods and services; fee policies; and dispute resolution policies in investment and business activities.

From the verifying agency, the Chairman of the Committee for Economy and Finance of the National Assembly, Phan Van Mai, stated that building and developing an International Financial Center in Vietnam is necessary and has sufficient political, legal, and practical grounds, aligning with the country’s development in the new era.

The Chairman requested the drafting agency to clearly evaluate whether the policy groups in the draft are sufficient to create a legal framework for the establishment and operation of the International Financial Center. He also emphasized the need to ensure that the regulations are attractive and competitive and asked the drafting agency to clarify which policies are considered outstanding and unique to Vietnam.