What do experts and investors say about the International Financial Center in Ho Chi Minh City?

Experts say that the establishment of the International Finance Center (IFC) in Ho Chi Minh City will not only create a financial base for Vietnam, but also an innovation and creativity center connecting Asia with the world .

The benefits are not just investment capital flows, but also a vibrant international financial center that can create jobs, nurture startups, attract talent and help Vietnam become an important piece of the global financial puzzle.

Building IFC helps Vietnam unleash a wave of innovation

Mr. Phil Wright, Senior Director of HSBC Vietnam Banking Division, affirmed that Vietnam's ambition to build an IFC not only strengthens the capital market, but can also unleash a wave of innovation, promote competitiveness and long-term growth.

Ho Chi Minh City has prepared infrastructure and personnel to put the international financial center into operation.

Experience from global financial centers shows that these centers always provide a safe testing environment for new technologies, attract investment and connect talents in many fields.

But success requires a clear legal foundation, stable policies and an ecosystem where the public and private sectors work closely together.

“A financial center with ‘high innovation, low stability’ risks speculative bubbles, weak supervision and loss of investor confidence. In contrast, an environment with ‘high innovation, high stability’ means clear direction, credible experimentation, and strong measures on issues such as data privacy and cybersecurity,” Mr. Phil Wright affirmed.

Associate Professor Dr. Tran Hoang Ngan affirmed that to achieve the double-digit growth target, Ho Chi Minh City needs a huge amount of investment capital. The early establishment of IFC will create a "floor" for the city to mobilize resources, especially foreign resources.

IFC in Ho Chi Minh City came later, to be attractive enough to attract foreign investors, Mr. Ngan said: "I think talking about Vietnam is already attractive. Many foreign experts have a very good view of Vietnam's macro economy . They see the scale of Vietnam's economy constantly growing on the development path, from 8 billion USD to now reaching 500 billion USD and being in the Top 33 global economies. Inflation and public debt are always well controlled.

Most importantly, we have a strong message: Vietnam has entered a new era, an era of national growth, an era of self-reliance and self-reliance. These messages are very strong, creating confidence for foreign investors.

In financial investment, trust is very important. Foreign investors believe that Vietnam is developing, they need to be present at IFC Vietnam soon . From there, I believe that IFC located in Ho Chi Minh City will take flight and develop."

Associate Professor, Dr. Tran Hoang Ngan: I believe that IFC located in Ho Chi Minh City will take flight and develop.

This economist said he expected the foreign currency bond market to be a must-have product at IFC HCMC. With this market, Vietnam will be able to mobilize foreign currency for development investment.

Besides, municipal bonds, green bonds, crypto assets, digital currencies... are products that should be prioritized, Vietnamese investors are very fond of and investing in this group of products.

A very important pillar is the need for the most preferential mechanism to attract the largest financial institutions in the world to set up headquarters at IFC Ho Chi Minh City, creating a brand and reputation for IFC Ho Chi Minh City. From here, these investors will attract "eagles" in their system to continue to operate at IFC Ho Chi Minh City.

Mr. Ngan said that fortunately, in the 50 years of development of the country since reunification and 40 years of renovation, Vietnam has a very large banking system with more than 30 commercial banks, 9 100% foreign-owned banks and more than 30 foreign bank branches operating in Vietnam, along with a system of securities companies, investment funds, insurance organizations... creating a solid financial institutional system serving IFC.

In addition, Ho Chi Minh City has a quality human resource in finance, many good specialists in the financial field, including digital finance, innovation, fintech experts...

Steps to increase competitiveness and attract global capital

Although the tasks have been defined, experts and investors still note that Ho Chi Minh City must prepare carefully to face many challenges and major changes in the process of forming and operating IFC.

Korean investors and experts gave operational advice to IFC HCMC at the meeting between HCMC leaders and Korean enterprises earlier this year.

Some experts say that Ho Chi Minh City's putting IFC into operation by 2025 is quite ambitious.

Mr. Huynh Minh Tuan - founder of FIDT Investment Consulting and Asset Management Joint Stock Company, said he was excited when Vietnam first operated IFC. However, he still found it quite ambitious to put it into operation in November and December. He hoped that Ho Chi Minh City would have time to test it before officially operating it; the "official launch" should be in the second quarter of next year.

Meanwhile, Mr. Michele D'Ercole - President of the Italian Business Association (ICHAM), said that the development of IFC is the most ambitious of Ho Chi Minh City so far.

He recommended that Ho Chi Minh City urgently coordinate and complete preparations for the establishment of the IFC on schedule. Progress is a key factor in attracting international capital and projects for sustainable development.

At a recent meeting between Ho Chi Minh City leaders and foreign investors, a representative of the American Chamber of Commerce (AmCham) said that the establishment of IFC in Ho Chi Minh City and Da Nang is one of Vietnam’s breakthrough reforms. If fully implemented, these centers can turn Vietnam into a regional center for green capital and finance.

AmCham recommends that maintaining independence in legal management, ensuring transparency in capital flows, and building a reliable dispute resolution mechanism will be key factors.

A representative of the British Chamber of Commerce in Vietnam (BritCham) also affirmed that establishing the IFC is a step to help increase competitiveness, attract global capital and promote sustainable growth for Vietnam.

To be successful, BritCham recommends harmonizing IFC regulations with international practices, through the application of common law, using English as the working language, applying international reporting and capital standards, and ensuring transparent governance.

The establishment of the International Financial Center in Ho Chi Minh City attracts special attention from foreign experts and investors.

Along with that is taking advantage of existing financial institutions, ensuring inclusiveness and expanding IFC incentives to the broader financial ecosystem of brokerage, consulting, auditing, training and professional organizations... to support national development goals.

According to expert Michael Jaewuk Chin, based on Korea's experience in building a financial center in Northeast Asia, he proposed that IFC Ho Chi Minh City implement a green bond system, a joint carbon credit trading project, and cooperate in developing renewable energy.

This expert affirmed that green finance is not only the key to helping Ho Chi Minh City become an international financial center, but also creates momentum for sustainable development.

He believes that the scale of green bond issuance in Vietnam by 2030 will reach 3 billion USD.

"The financial center must be closely linked to the real economy of Ho Chi Minh City and Da Nang, from which it can develop sustainably. Vietnam has long been one of the economies that attracts FDI very well. The establishment of IFC will also support the mobilization of capital from outside, but that is only one of the goals.
More importantly, this will be a bridge, a driving force, a catalyst for Vietnam to consider opening its financial market, and to what extent," said economic expert Nguyen Minh Cuong.

Source: https://vtcnews.vn/chuyen-gia-nha-dau-tu-noi-gi-ve-trung-tam-tai-chinh-quoc-te-tai-tp-hcm-ar987548.html