National Assembly Chairman: Legal framework for international financial center needs breakthrough

National Assembly Chairman Tran Thanh Man speaks. (Photo: Doan Tan/VNA)

On the evening of June 19, the National Assembly Standing Committee gave opinions on receiving, explaining, and revising the draft Resolution of the National Assembly on the International Financial Center in Vietnam.

Presenting the Report on receiving and explaining the opinions of National Assembly deputies, Minister of Finance Nguyen Van Thang said that the Government has surveyed and organized many workshops to consult with major financial institutions, investors, domestic and international experts and all have been assessed that the mechanisms and policies proposed in the draft Resolution are innovative and competitive. Tax policies, land, infrastructure, human resources, some regulations on insurance, etc. have surpassed those of some other international financial centers.

Some policies are close to international practices such as management models, language, immigration, accounting, labor and employment, fintech, sandbox, public-private partnership (PPP)... Some policies have a roadmap for controlled opening and gradual adjustment such as foreign exchange, dispute resolution...

Through studying international experience and starting from the policy of developing financial centers in a comprehensive and strategic manner, based on the potential and advantages of each locality and the requirements for balanced and harmonious regional development, the Government reported to the Politburo on the establishment of a financial center located in two cities, Ho Chi Minh City and Da Nang City, with a clear division of functions and orientation and was approved by the Politburo.

Regarding the development of financial centers in the two cities, Minister Nguyen Van Thang stated that Ho Chi Minh City is the largest economic and financial center in the country, has formed a rich financial ecosystem, has a developed banking, securities, and insurance system, and attracts many international financial organizations and institutions.

The financial center in Ho Chi Minh City is expected to develop the capital market; banking, currency market; develop a testing mechanism (sandbox) on Fintech, innovation in the financial sector; establish specialized trading floors, new trading platforms; develop the commodity market...

Da Nang has the advantage of being located in the center of the Central region, being the gateway to the sea of the East-West economic corridors, and at the same time being a place with favorable conditions to test new models such as sustainable finance, green finance and application of financial technology, digital services...

Chairman of the National Assembly's Economic and Financial Committee Phan Van Mai, representative of the inspection agency, said that the Standing Committee of the Committee agreed with many contents of the reception, explanation and draft Resolution and Report of the Government.

The Committee recommends that the promulgation of regulations in the draft Resolution must ensure the following principles: Strictly implement Regulation No. 178-QD/TW dated June 27, 2024 of the Politburo on controlling power, preventing and combating corruption and negativity in law-making work; ensure constitutionality and legality in promulgating regulations; ensure feasibility, timeliness, objectivity, and protection of national interests, rights and legitimate interests of people, businesses and related entities.

View of the meeting. (Photo: Doan Tan/VNA)

At the same time, ensure the conditions for implementation of issued regulations, focusing on implementation resources, ensuring the balance of the State budget, including local budgets; properly implementing regulations on impact assessment, regulations on policy consultation when issuing policies, ensuring that regulations do not have negative impacts on socio-economic development, environment, life, and bring practical efficiency to the country; clearly defining the responsibilities of organizations and individuals in issuing regulations that are different from current laws, ensuring compliance with the principle of authority going hand in hand with responsibility.

Speaking at the meeting, National Assembly Chairman Tran Thanh Man stated that the construction of an international financial center in Vietnam plays a role in promoting the country's growth with the hope that from now until 2030, economic growth will reach double digits. This content has been commented on by competent authorities. So far, the agencies have agreed on the plan to receive, explain and revise the draft Resolution.

The National Assembly Chairman said that the Resolution should only regulate general issues of a principled nature. The Government should issue specific guidelines to ensure flexibility, timeliness, and decentralization to the two cities: Ho Chi Minh City and Da Nang City, with contents related to the functions, tasks, and powers of the locality, promoting the spirit of daring to think, daring to do, and daring to take responsibility.

The National Assembly Chairman noted that the construction of an international financial center is different from the formation of a free trade zone, due to the characteristics of continuous, cross-border capital and currency circulation. Therefore, regulations must be associated with supervision, risk management, and ensuring security and safety of the financial and monetary market.

According to the National Assembly Chairman, the development of a legal framework for the operation of an international financial center needs to be a breakthrough compared to current legal regulations.

Therefore, agencies need to continue to coordinate and review contents similar to current regulations or those being considered by the National Assembly in draft laws and resolutions to be passed in the future. During the implementation process, it is necessary to pay close attention to preventing and avoiding risks.

Regarding tax policy, the National Assembly Chairman proposed having a control mechanism and specific guidance on the application of incentives for enterprises that have both a commercial presence operating in the financial center and also operating outside the financial center, to avoid taking advantage of policies and affecting fairness in competition.

Stating that mortgaging land use rights at foreign credit institutions is new compared to current regulations, the National Assembly Chairman requested more specific guidance, especially in the issue of asset handling, to ensure avoiding disputes and lawsuits.

"This is a major policy. We must do it carefully, closely, cautiously, and apply international law to this financial center, but it must be consistent with Vietnam's legal conditions," the National Assembly Chairman emphasized.

In the meeting this afternoon, the National Assembly Standing Committee gave opinions on authorizing the Vietnam National Oil and Gas Group to approve a number of contents in oil and gas activities; handling debt collection sources of policy credit programs funded by the state budget that have expired at the Vietnam Bank for Social Policies./.

(Vietnam News Agency/Vietnam+)

Source: https://www.vietnamplus.vn/chu-tich-quoc-hoi-khung-phap-ly-cho-trung-tam-tai-chinh-quoc-te-can-co-dot-pha-post1045302.vnp