Two Operating Agencies, One Supervisory Body
According to the Ministry of Finance, in line with the directives of the Party Central Committee and the Politburo, and based on the National Assembly’s resolution regarding the International Financial Center in Vietnam, the government plans to establish the International Financial Center under a “one center, two destinations” model, located in Ho Chi Minh City and Da Nang.
Ho Chi Minh City will serve as a major financial hub, focusing on the development of stock markets, bond markets, banking, fund management, and listing services. Da Nang will concentrate on financial services related to logistics, maritime trade, free trade zones, and agro-industrial supply chains.
Prime Minister Pham Minh Chinh delivers concluding remarks at the conference. Photo: VGP
The Prime Minister emphasized that to attract experts, the most favorable and competitive mechanisms and policies must be in place, fostering a harmonious ecosystem between people, society, and nature.
The proposed area for the center in Ho Chi Minh City covers approximately 899 hectares, while the Da Nang site spans around 300 hectares.
Minister of Finance Nguyen Van Thang stated that Vietnam aims to selectively learn from and adapt experiences from existing models while ensuring national sovereignty, independence, and unique characteristics.
Regarding the organizational structure of the operating and supervisory bodies of the International Financial Center, the Ministry of Finance is exploring four proposals, each with its own advantages and limitations that require careful consideration within the broader context.
Concluding the conference, Prime Minister Pham Minh Chinh stressed that this is a challenging and unprecedented task for Vietnam. Therefore, it should not be rushed or overly perfectionistic, but opportunities must not be missed.
Based on the conference’s feedback and international best practices, Vietnam will select the most suitable approach to establish and refine the legal framework for the development of the International Financial Center.
The Prime Minister outlined key principles, including close domestic and international coordination, enhanced cooperation between domestic enterprises, international financial institutions, and Vietnamese state agencies.
Regarding the center’s internal structure, the Prime Minister indicated plans to establish two operating agencies under the respective local governments, with a single supervisory body and a dedicated court to resolve disputes.
Flexible Licensing, Primarily Post-Audit
The Prime Minister highlighted the need for favorable, competitive, predictable, and familiar policies, blending tradition with innovation and aligning global best practices with Vietnamese culture.
He also emphasized collaboration among banking, financial, and other institutions to drive the centers’ growth. Financial and non-financial service providers should benefit from flexible licensing, primarily through post-audit mechanisms, reducing pre-audit requirements.
The legal framework must be transparent, autonomous, and offer specific incentives. During the center’s development, technology transfer and human capital development are critical.
Conference attendees. Photo: VGP
The Prime Minister stressed that the International Financial Center should not create barriers for other centers or internal members against external entities.
The center’s operations should integrate finance with production, business, trade, and investment, ensuring seamless coordination and competitiveness with other global financial hubs.
Regarding administrative procedures, the Prime Minister advocated a “one-stop shop” approach, minimizing unnecessary red tape.
Ho Chi Minh City and Da Nang must prepare essential conditions, publicly announce specific policies within their jurisdiction, and act urgently, transparently, and decisively to build momentum, leveraging the strengths of both cities and the nation.
The Prime Minister directed relevant agencies to expedite the drafting of the Decree on the International Financial Center, aiming for government approval in November and the center’s launch within the same month.
