International Interest in Da Nang’s Financial Hub Development

Investment groups from the U.S., Singapore, the Middle East, and Switzerland are keen on building a financial center in Da Nang.

On January 16, a seminar titled “Developing Regional and International Financial Centers in Vietnam” took place, organized by the Da Nang People’s Committee.

During the event, Ho Ky Minh, Vice Chairman of the committee, emphasized the enthusiasm of global investors for the proposed financial hub, focusing on areas like innovation, green finance, financial technology, and trade finance.

Da Nang aims to create a diverse financial ecosystem divided into three main service categories.

The first category includes international financial services encompassing payment systems, trade services, risk management, foreign exchange, and green finance, all connected with the Free Trade Zone’s growth.

The second category focuses on fintech and techfin services that provide platforms for payments, asset tokenization, and AI-based solutions, alongside incubation spaces for fintech startups to foster creativity and growth.

The third category features investment support, enterprise development, and utilities like auditing, accounting, legal consultancy, tax advice, customs services, and entertainment options such as casinos, resorts, and property valuation. This holistic approach aims to place Da Nang on the map as a leading global financial and entertainment center.

To facilitate these efforts, the city has earmarked a 6.17-hectare site equipped with excellent connectivity and infrastructure for offices, resorts, conferences, and leisure amenities.

Moreover, a 9.7-hectare area adjacent to Software Park No. 2 has been set aside for fintech activities, expected to attract tech firms requiring high-quality facilities.

Andy Khoo, CEO of Terne Holdings, predicts that Da Nang’s financial center could enhance Vietnam’s GDP by an additional $3-5 billion each year.

He acknowledged Da Nang’s unique position as a connection between Hanoi, known for governance, and Ho Chi Minh City, the financial capital.

“Unlike Ho Chi Minh City, which is capital market-oriented, Da Nang could focus on green finance, trade facilitation, and fintech, in line with global trends,” Khoo said.

He suggested that prioritizing green finance, trade finance, and digital innovation would set Da Nang apart, also proposing a Special Economic Zone (SEZ) with tax benefits and secure asset storage. Operating in English, he added, is vital for fostering investor confidence.

Khoo recommended that for Da Nang to emerge as Southeast Asia’s next financial hub, it should emphasize three main areas: green finance, fintech innovation, and trade finance.

Andreas Baumgartner, CEO of Metis Institute, pointed out that for successful international financial hubs, strong governance and an open legal system are crucial.

He referenced the Dubai International Financial Center (DIFC) and Abu Dhabi Global Market (ADGM) as models, noting their robust frameworks based on English common law and clear regulations.

Building a financial center, Baumgartner remarked, resembles a marathon in terms of the necessary endurance and resilience.

“Doubts may arise about its viability,” he conceded, “but looking at the successes of established financial centers, the effort can yield significant rewards.”

“With proper execution, such centers can truly create substantial positive change,” he concluded.