Brian Jeffrey
The Ministry of Planning and Investment (MPI) has proposed a plan to establish a regional financial center by 2035 and an international financial center by 2045, with the Prime Minister overseeing the initiative.
In the recent draft for the financial center, the MPI emphasizes the development of an international financial hub in Ho Chi Minh City, targeting District 1 and the Thu Thiem Urban Area for its establishment.
Prior to this, a regional financial center will be created in Da Nang, promoting international financial services while integrating with the Free Trade Zone and a controlled sandbox for fintech innovations.
While the journey to develop these financial centers has its challenges, MPI believes that success will greatly improve Vietnam’s global financial connections, attracting foreign institutions, capital investments, and enhancing the local financial market.
The proposed structure of the financial center includes various agencies, with the Prime Minister at the helm of a steering committee responsible for strategic planning and investment decisions.
This committee will be supported by representatives from the State Bank, Ministry of Finance, Ministry of Public Security, National Financial Supervisory Commission, and local government officials.
To address disputes, an International Arbitration Center will be established within the financial center, designed to enhance trust and facilitate operations for involved parties.
The MPI has put forth immediate policies for the financial center’s establishment, including simplifying business registration processes into a single online procedure, allowing innovative fintech models to operate, and creating a specialized exchange.
Foreign banks will receive incentives to establish branches in Vietnam, alongside visa exemptions for overseas personnel working in the financial center, streamlined work permit processes, and expedited long-term visa issuance for their families.
Future policies will focus on financial case law regulations, the creation of an independent financial court, and the governance of a national digital currency (CBDC) after 2035.
The primary goals of this initiative include:
– Developing a regional financial center by 2035.
– Launching an international financial center by 2045.
The ambition is to rank within the top 75 global financial centers by 2035 and the top 20 by 2045, aiming for similar standings in the Asia-Pacific region.
In fintech, Vietnam aspires to be within the top 75 globally by 2035, moving to the top 20 by 2045, and achieving a leading position in ASEAN.
The latest GFCI report (September 2024) places Ho Chi Minh City at 100th in fintech, showing slight progress compared to earlier rankings, though it remains lower than Jakarta yet above Manila and Bangkok.
