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Financial centres will ensure new standards
International trade, green finance, and digital assets are key points for Vietnam to increase its competitive advantage on the path to building its first international financial centres.
Financial centres will ensure new standards
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At a conference on building Vietnam’s international financial centre (IFC) by the Ministry of Finance in coordination with Ho Chi Minh City People’s Committee on March 28, domestic and international experts shared ideas to shape different support services, helping Ho Chi Minh City’s IFC carve out its own position and be competitive enough.
According to Jens Lottner, CEO of Techcombank, the IFC is opening up many new opportunities for the market.
“For example, the whole market will have to raise its standards according to international transaction criteria, and businesses can borrow capital in Vietnam without having to go through other bridges like Singapore,” Lottner said.
Great opportunities also lie in the technology sector. According to Lottner, Asia has countries that provide advanced financial services and develop digital assets such as cryptocurrencies. “Therefore, it is key that Vietnam can look for suitable simulation models, especially blockchain products, cryptocurrencies, and AI applications in commercial products,” he said.
In addition to digital assets, the second service group that should be focused on is green finance, in which Vietnam has many advantages, such as large renewable energy sources.
“Vietnam needs to quickly build a green finance portfolio according to international standards, establish promotion systems and have clear regulations on carbon emissions to motivate investors,” he said.
Traditional asset management companies are also facing new opportunities, in the context of a market size that is still very modest compared to international standards.
According to Nguyen Hoai Thu, chairwoman of VinaCapital Fund Management, if Ho Chi Minh City becomes an IFC, it will help pull in more new investors as well as international capital flows to the Vietnamese market.
“In this context, fund businesses that are slow in terms of technology management will also have to change. When there are many new high-tech products such as blockchain, for example, existing systems in the capital market will also need to change accordingly,” Thu said.
In terms of products, Thu also believes that tokenising traditional financial products will make them easier to trade and more attractive to foreign investors. “Some changes are definitely needed to help the capital market develop more strongly in the future, including tax incentives or removing barriers that are no longer practical,” Thu said.
Nguyen Thi Bich Ngoc, Deputy Minister of Finance, commented that the construction of an international financial hub in Vietnam must have its own identity, different from any other country, taking advantage of comparative factors in terms of economy, society, and geopolitics.
“Vietnam has strongly integrated into the international economy, and so this is an opportunity for Vietnam to develop special types of finance trade finance. Vietnam also has stronger conditions to build an IFC based on the export of agricultural products and traditional goods. It is also possible to build commodity exchanges based on blockchain,” Ngoc said.
Andrew Oldland, head of the International Financial Centre Working Group under TheCityUK, said that Vietnam needs to adjust its IFC construction model to suit the context, in which it must create a difference from successful financial centres in the world.
“When building policies, Vietnam needs to have a mechanism for free money flow, clearly identify innovation trends in financial centres such as fintech and green finance,” Oldland said. “Modern financial services can only be truly effective when an IFC meets two core conditions: infrastructure and talent human resources.”
Nguyen Thuy Hanh, CEO of Standard Chartered Bank Vietnam, suggested that financial centre must ensure a stable and safe foreign exchange trading environment, simplify the process of granting work permits and international investment cooperation.
“Owning this environment will make it easier for international financial institutions to co-finance large projects, especially in the fields of infrastructure and green finance. Good infrastructure is an essential condition to pull in international investment sources,” Hanh said.
The issue of talent human resource is also a key condition that many businesses mentioned, especially the banking sector and fund management companies, together with the other pillars of legal framework and infrastructure, according to Iain Frew, British Ambassador to Vietnam.
“IFCs require specific skills and higher standards. The younger generation can do it, but how to engage resources to implement this initiative is an important question that Vietnam must answer,” Frew said.
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Nguyen Van Thang, Minister of Finance
Vietnam identifies an international financial centre (IFC) as a strategic spearhead, helping transform its growth model and improve the efficiency of resource use, thereby increasing international competitiveness and participating more deeply in the global financial system.
Building an IFC is not just for Ho Chi Minh City or Danang. The entire political system must participate, implement synchronously, and innovate strongly.
The country is currently drafting a resolution on IFCs with the aim of establishing an open, transparent legal framework with specific, superior incentive policies in line with international practices, and at the same time, preparing the fundamental conditions for their development.
The major direction includes continuing to strongly open up the financial sector, creating the best conditions for international financial institutions to operate effectively, transparently, and fairly.
The country must clearly implement the IFCs by 2035, encouraging the testing of advanced financial mechanisms and boosting investment in fintech, blockchain, AI applications, and green finance; all while strengthening connections with other IFCs to develop high-quality personnel, improve financial governance, and ensure financial market stability.
The idea of an IFC is not new, but for Vietnam it is an unprecedented task. The country will learn from its ongoing experience, and by not being hasty or a perfectionist and missing the opportunity.
Arnaud Ginolin, managing director and partner Boston Consulting Group
Building an IFC is a long journey, but Vietnam has started the most important steps. For an IFC to play an important role in boosting Vietnam’s economic growth, in addition to domestic capital, foreign investment will supplement the necessary financial resources.
To attract foreign funding, the IFC in Ho Chi Minh City cannot rely solely on the market to operate on its own but needs intervention and support from the government. It needs to invest in financial infrastructure and have a strong legal basis to monitor and operate. The establishment of clear and transparent regulations will create a stable legal environment, encouraging international investors and businesses to participate.
For this to operate effectively, it is necessary to identify priority sectors such as fintech, trade finance, and green finance. It is also necessary to establish preferential policies and incentives to attract talent human and create a friendly business environment. I would also like to emphasise the tremendous need to transition to renewable energy. It also needs a combination of green finance, net-zero, and resilience.
Vietnam has a unique competitive edge. I believe in Vietnam’s capacity to be an IFC with its population, talent, and willingness to develop supported by a strong and ambitious leadership and government.
Dr. Kang Qu, managing director of Sustainability Strategy, Bank of China (Hong Kong)
Green finance is critical. Because green and sustainable infrastructure is fairly new, everybody is at the same starting point right now, so the potential is huge. Vietnam must consider setting up an international green finance centre, as the country has great infrastructure and ambition.
The legal framework is crucial, and Ho Chi Minh City should consider adopting an international model. For example, common law is widely used and understood by international investors and financial institutions. Aligning with such a system could add significant value to the city’s proposed IFC.
Meanwhile, it is vital to ensure the domestic financial market operates as normal, so this kind of risk management may be a good starting point regarding the next steps to consider.
Nguyen Van Duoc, chairman, Ho Chi Minh City People’s Committee
An IFC is not only a place where large capital flows converge, but a strategic driving force to encourage innovation, develop high technology, improve governance capacity, and increase competitiveness.
This is an opportunity to improve the efficiency of resource allocation, expand access to capital for businesses, develop infrastructure, and affirm Vietnam’s position in the global financial and trade network.
The development of the IFC in Ho Chi Minh City will bring practical economic and social benefits and create a ripple effect in neighbouring cities and the Southeast Asian region. This will be the foundation for the city to improve its urban management capacity, develop sustainably, and expand comprehensive cooperation with global partners.
However, there will be many difficulties in implementation, so we expect the participation of experts, scientists, international organisations, consulting organisations, financial institutions, and enterprises. They will not only contribute ideas to build the IFC but also create a sustainable, transparent, and creative future for Vietnam.
Ho Chi Minh City is committed to accompanying the central government, the business community, international financial organisations, domestic and foreign investors, and experts to create a comprehensive IFC – a place where quality capital flows, creative knowledge flows, and international standards converge.
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VIR
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