Vietnam Aims for a Competitive, Not Tax Haven, Financial Landscape to Lure Institutions Are there any other adjustments you would like to make to this text? I can easily make further changes or provide additional content if you wish.

On June 27, the National Assembly issued a resolution on the development of an international financial center in Vietnam. The National Assembly’s resolution stipulates a series of specific policies applicable in the International Financial Center in Vietnam, including policies on foreign exchange, banking activities; finance, capital market development; taxation; fees and charges; and policies for strategic investors…

Speaking at a seminar between the Prime Minister and representatives of British businesses investing in Vietnam on June 28, Mr. Warrick A. Cleine MBE, Chairman of the BCAC and Chairman and CEO of KPMG in Vietnam and Cambodia, said that the Government’s resolution on the establishment of the International Financial Center is considered a strategic boost and has the potential to elevate the financial industry, including green finance, in Vietnam.

“This will be a hub for green finance, fintech innovation, capital market development, and international trade, with risk management always a top priority. We are particularly delighted that the design of the International Financial Center has incorporated contributions and professional advice from the UK financial community, and we are all joining hands to make it a reality,” said Warrick.

The Chairman of KPMG in Vietnam and Cambodia believes that this will be a driving force to support Vietnam’s economy, from exports, capital markets, energy transition to the pension and savings industries, which need attention.

“Vietnam can continue to draw on London’s experience as a global international financial center,” he said, adding that UK financial firms such as HSBC, Central Charter Bank, Dragon Capital, and Prudential are committed to accompanying Vietnam.

In that spirit, Mr. Warrick made some recommendations. First of all, it will continue to build, apply, and share international experiences and practices on legal aspects and then apply international financial reporting standards, including IFRS, and corporate governance.

Mr. Warrick also hopes that Vietnam will facilitate the participation of existing financial institutions.

Third, it is necessary to ensure the inclusiveness of the International Financial Center. Mr. Warrick welcomed Vietnam’s major orientations such as Resolution 57 of the Politburo on science, technology, Resolution 59, and 68 to develop a people-centric economy. The international center will provide important mechanisms to accelerate and realize these policies. To make the International Financial Center effective, preferential policies also need to be extended to the entire ecosystem.

Fourth, it is necessary to replicate reforms across the entire economy to boost GDP growth. The government has recognized certain reforms that will create growth. This can also bring similar benefits to the entire economy.

“We propose that the Government review the proposed reforms for the International Financial Center, especially in the field of work permit approval, personal income tax exemption, and creating conditions for domestic and foreign investors to participate in the financial market,” said Warrick.

Responding to this issue, Vice Minister of Finance Nguyen Thi Bich Ngoc said that Vietnam will aim to develop a financial center to mobilize international resources to develop three very important pillars, namely the green economy, the digital economy, and innovation. In the coming time, it will continue to develop the international financial center in Ho Chi Minh City and Da Nang.

Regarding the specific opinions of the enterprises mentioned regarding long-term incentives, Ms. Ngoc informed that the draft Resolution has stipulated incentives on corporate income tax and personal income tax to develop voluntary pension funds and other funds. In the process of building decrees in the near future, the Ministry of Finance will continue to review and propose competent authorities to consider and amend tax policies in line with the tax reform strategy by 2030 and international practices.

“Especially in the context of developing the financial center, we will build a tax policy to ensure competitiveness with the region, but we also do not want to become a ‘tax haven’ to attract financial institutions,” Ms. Ngoc emphasized

“All international financial centers are very careful about building a ‘tax haven’ to attract financial institutions to their country. We are doing the same,” Ms. Ngoc added.

Talking more about the orientation of developing the international financial center, Mr. Nguyen Ngoc Canh, Vice Governor of the State Bank of Vietnam, said that the banking and foreign exchange policies at the Vietnam International Financial Center are built towards absorbing international experiences and considering ensuring a roadmap suitable for Vietnam. The SBV fully agrees with the proposal to strengthen the presence and contribution of British banks to the process of building Vietnam’s financial center in the draft Resolution and the draft Decree on licensing foreign investors to operate banks and manage foreign exchange.

“I also propose that, through the British Business Association, British businesses actively participate in the development of Vietnam’s financial center. We always believe that the experience of British financial institutions will be of practical significance in developing Vietnam’s economy,” said the Vice Governor.