The content of the Proposed Draft on establishing an International Financial Center in Da Nang city. So, what preparations is Da Nang city making to take advantage of the opportunity to attract new investment waves?
According to experts, Da Nang city has many advantages to form an International Financial Center. This locality has geographical advantages and connectivity, urban infrastructure, quality of living environment, human resources, and many other development conditions… Da Nang has been chosen to pilot the establishment of an International Financial Center in accordance with Resolution 43 of the Politburo on the construction and development of Da Nang city by 2030, with a vision to 2045.
Da Nang has many advantages to form an International Financial Center
In 2024, Da Nang city chose the theme “Promote administrative reform, strengthen discipline and regulations, continue to attract investment resources, promote economic growth, and ensure social security”. Da Nang City continuously organizes many major events, forums to promote its image, listen to diverse opinions from central agencies, diplomatic representative agencies, international organizations, non-governmental organizations, especially the business community accompanying the city open up cooperation resources and international integration, attract investment, expand tourism and commercial markets, enhance cooperation in many other areas and contribute to the city’s socio-economic development in the coming time.
Mr. Nguyen Van Thao, Ambassador Extraordinary and Plenipotentiary of Vietnam to Belgium and the Grand Duchy of Luxembourg, Permanent Representative of Vietnam to the European Union, believes that Da Nang city’s strategic choice for diverse areas of development is a correct one, completely suitable for the outstanding strengths of the locality.
“The European Union is an area with very abundant financial resources. In 2023, Vietnam and Luxembourg, a member country of the EU, established a strategic partnership on green finance. Within the framework of the established strategic partnership, I believe that if Da Nang strengthens cooperation with the EU in general and Luxembourg in particular, Da Nang can completely become the financial center of the region” – Mr. Nguyen Van Thao said.
Da Nang city leaders working with TheCityUK, the United Kingdom in the International Financial Center model
Da Nang city aims to become an international financial center and join the network of regional financial centers after 2045. Da Nang city plans a clean land fund of over 6 ha to serve the establishment of a financial center complex with favorable location, good infrastructure. The Da Nang City People’s Committee has set out a roadmap for construction in 4 stages…
Accordingly, from 2024 to 2030, Da Nang city will complete the infrastructure; attract international financial institutions and globally influential investors. After 2030, the city will transform the center model to provide financial services for domestic and some Asian-Pacific countries, aiming to become a regional financial center and the country’s fintech center by 2045.
The Da Nang City People’s Committee proposes 11 special policy mechanisms. The locality will give preferential treatment to strategic investors in building and developing the financial center, to economic organizations established within the financial center, with tax incentives. Da Nang has policies on capital market development, capital mobilization, foreign exchange policies, fintech development policies.
Da Nang is an attractive destination for foreign investors and international organizations
Mr. Andrew Oldland, Head of the TheCityUK task force, the United Kingdom on the International Financial Center, recommends that Da Nang city should focus more on financial activities, the strengths of the city.
“The International Financial Center is not just about infrastructure; the most important issue is the mechanism, a regulatory framework suitable for activities. In the world, there are many cities that build beautiful financial centers with skyscrapers, but if they do not have attractive financial activities for companies, they will not make a difference in the international financial market. Therefore, I want to emphasize that when building the Da Nang International Financial Center project, attention should be paid to the financial services that the city is strong in” – Mr. Andrew Oldland said.
The International Financial Center in Da Nang city will operate according to the offshore financial center model. The pilot establishment of the International Financial Center in Da Nang city according to this model can be applied immediately to take advantage of the current advantages of Vietnam. This is a separate financial area with tax regulations, open and highly competitive supervision. Investors are considered foreign enterprises.
Mr. Ho Ky Minh, Vice Chairman of Da Nang City People’s Committee, said: “Building and forming the International Financial Center and putting it into operation require a long time, at least 5 years. To be able to choose a suitable model and operate effectively, it is necessary to study from many different perspectives in the process of building the model as well as the regulations and policies about the International Financial Center in Da Nang in the coming time”.
