The Financial Hub: It’s Not About the Number of Skyscrapers or Acres of Land

Vietnam Needs to Move Fast and Differently

On August 2nd, Prime Minister Pham Minh Chinh attended a conference in Ho Chi Minh City to deploy the National Assembly’s resolution on the International Financial Center in Vietnam. At the event, the Prime Minister emphasized that immediately after the National Assembly passed Resolution 222, the Government, ministries, sectors, and the administrations of Ho Chi Minh City and Danang had actively implemented the resolution, focusing on constructing and issuing guiding documents and preparing the necessary infrastructure and resources to establish the international financial center.

The head of the Government informed that the central ministries and sectors have been and are coordinating with the two cities to determine to construct decrees on the establishment and special mechanisms and policies for financial and foreign exchange products, dispute resolution, etc., at the international financial center. They will synchronously implement and immediately allow the Center to operate as soon as the Resolution takes effect from September 1st, 2025.

In an interview with Tien Phong newspaper, PGS, TS. Nguyen Huu Huan, Head of the Financial Market Department, Banking Faculty, University of Economics Ho Chi Minh City (UEH), stated that the goal of operating the International Financial Center in Vietnam in a short time is an important first step. However, to ensure smooth and efficient operations, the management needs more time to prepare and establish a roadmap for implementation.

“Currently, we have the resolution, and soon there will be decrees and then specific guiding circulars. This is an important legal basis for the Center’s operations. Simultaneously, completing the hardware and software infrastructure and organizational apparatus must be done synchronously,” said Mr. Huan. He also expected that the first exchanges would commence operations during this phase, creating an initial highlight for the Center.

Mr. Huan believes that it takes many years to establish a truly international financial center. Developing a financial infrastructure cannot be rushed, especially since Vietnam is a latecomer in this field.

As a latecomer, Vietnam has the opportunity to learn from the successful models of other countries and avoid their challenges to expedite the process. For example, if it takes 7-10 years for large international financial centers to take shape, Vietnam can aim to shorten this timeframe to 3-5 years or even faster by adopting innovative approaches and leapfrogging. Besides learning from others, Vietnam also needs to chart its unique path.

“If we only offer traditional financial products like other centers, Vietnam will struggle to attract investors. Our model must be creative and distinct in terms of the center’s organization, the operation of exchanges, and the types of products and services offered. Competing through tax incentives is necessary but not sufficient. More crucially, we need to create a breakthrough business environment and a flexible mechanism to foster the development of new financial and technological models,” emphasized Mr. Huan. He also highlighted that the financial center should be a hub for innovation and creativity.

Abundance of Talent, Awaiting Enabling Mechanisms

From the perspective of domestic enterprises, Mr. Mai Huy Tuan, General Director of SSI Digital Joint Stock Company, believes that the first and most important factor in forming an international financial center is an open policy. With a conducive legal framework, high-quality human resources, individuals with knowledge and experience in global financial operations, will be attracted to Vietnam. They will develop business models, connect with traditional and non-traditional financial systems, and manage diverse capital flows, thereby establishing a genuine financial hub.

Today, the concept of a financial center is no longer confined to a specific physical space. The financial world has entered the digital age, where cross-border activities are facilitated by blockchain technology, crypto assets, and decentralized platforms.

Mr. Tuan believes that the core of developing an international financial center lies not in the number of buildings or hectares of land but in attracting and gathering a community of global financial experts, providing them with an environment to develop ideas and experiment with new models. This should be accompanied by the support and understanding of central and city leaders and related ministries and sectors, who are willing to open the “institutional door” to innovative models.

Mr. Thuat Nguyen, founder and director of Kyros Ventures, a venture capital fund, expressed his hope that operating the international financial center would encourage talented Vietnamese working in the global Web3 market to return to Vietnam.

With years of experience in the global Web3 market, Mr. Thuat affirmed that Vietnamese professionals are highly talented. “Many projects have reached valuations of several billion dollars when listed on international exchanges, and only then did I discover that they were initiated by Vietnamese individuals. They are Vietnamese in the US, Canada, and all over the world,” said Mr. Thuat. He wishes to connect and bring them back to Vietnam to build a community and foster exchanges. Special mechanisms for financial centers will create an attractive, transparent, and friendly environment, encouraging them to return to Vietnam to work and do business with confidence and pride.