Establishing an international financial center in Ho Chi Minh City
This roadmap was mentioned in the Ho Chi Minh City State Financial Investment Company (HFIC) report to the Municipal People’s Committee on the progress of construction projects to develop Ho Chi Minh City into an international financial center.
Therefore, the project has now completed the draft once and twice after receiving comments from senior economists, financial institutions – economics, universities, etc. The international financial center in Ho Chi Minh City is reported by HFIC with three specific components, including: money market and banking system; capital market; derivatives market.
In particular, the drafts of these two projects have provided a specific roadmap including 3 phases for establishing an international financial center in Ho Chi Minh City. In particular, the first phase from 2021-2025 will strengthen Ho Chi Minh City’s position as a national financial center. Upgrade from a secondary financial center to an international financial center in the GFCI Global Financial Center Index before 2025. Initially established a complex financial commercial center in Thu Thiem (Thu Duc City) to attract financial technology (fintech) and digital banking services in association with the development of the banking system commercial, derivatives trading market…
Experts suggest that the international financial center will link the existing financial center in District 1 with a complex commercial and financial center in the new urban area of Thu Thiem. Photo: TAN THANH
HFIC said that based on receiving comments from experts, the company has adjusted the project name to “Project to build Vietnam’s international financial center in Ho Chi Minh City”.
HFIC stated that in its first phase, the project will pilot a mechanism for financial institutions to operate under the financial group model; fintech and digital banking licensing under the pilot country management mechanism. At the same time, building a derivatives trading market in an interconnected structure with international commodity exchanges, attracting new projects in the Thu Thiem financial-commercial complex.
The next phase from 2026-2030 will focus on developing Ho Chi Minh City into a regional financial center and from 2031 onwards it will become a global financial center. At each stage, the project establishes a goal, orientation, and solution.
The association of international financial centers in Ho Chi Minh City and in fact, the city is making efforts to implement this project. Since it is Vietnam’s international financial center located in Ho Chi Minh City, the responsibility of development is not only the city but also the whole country. The government has also approved a project to build two international financial centers in Ho Chi Minh City and a regional financial center in Da Nang City.
“The construction of an international financial center should be supported by our desire to improve the Ho Chi Minh City Stock Exchange for a long time in the direction of gradually expanding the proportion of foreign investment companies, expansion for foreign investors to participate in Vietnam’s finance and securities market… However, there are still many problems related to institutions, liberalization of capital market accounts, liberalization of money market conversions… must be reviewed and submitted to the National Assembly in the near future” – Assoc. Prof-Dr Tran Hoang Ngan admits.
According to the project, the orientation of the development of an international financial center in Ho Chi Minh City is proposed to be linked to the urban development process of the city, with the linkage of financial activities in the existing urban areas (Districts 1 and 2). District 3) with the new urban areas of Thu Thiem. However, the development of a financial center is not limited to geographic space, but requires a soft space-oriented approach. In which, the core part of money market banking, capital markets and derivatives markets, financial institutions and direct and indirect supporting products and services to attract investors.
According to Associate Professor Tran Hoang Ngan, the international financial hub will link the existing financial center in District 1 with the commercial complex and financial center in the new urban area of Thu Thiem. However, location is not so important because of the trend of online connections, online transactions, developing technology… For example, it can be a model of a financial center with financial avenues (banking, insurance, accounting) along with central commercial, investment, international standard tourist complex services, zones non-tariff.
The project design also proposes to establish an International Financial Center Development Council in Ho Chi Minh City with the appropriate function of promoting the development and management of an international financial center. This board has the authority to license under the pilot mechanism for a limited time, to perform a state management role during the term of the pilot mechanism for innovative fintech services; the authority to attract investors and license under the pilot mechanism for the Ho Chi Minh City Commodity Exchange; the authority to select investors in international financial centers…
at Blogtuan.info – Source: cafebiz.vn – Read the original article here
