Golden opportunity to create an international financial center

Thu Thiem (HCMC) is a key area with great development potential, with advantages in land fund and spacious space, convenient connection to the central area - Photo: VAN TRUNG

That is the affirmation of Associate Professor, Dr. TRAN HOANG NGAN, assistant to the Secretary of the Ho Chi Minh City Party Committee, about the role of the International Financial Center in Vietnam, in an interview with Tuoi Tre on August 3.

Mr. Ngan emphasized that Vietnam is facing a golden opportunity to create an international financial center when we will take advantage of our strengths to create our own identity, learn from successful models in the world , and anticipate risky lessons to make a difference.

From September 1st onwards, the initial activities of the Ho Chi Minh City International Trade Center will begin to operate.

Assoc.Prof.Dr.Tran Hoang Ngan

Prepare resources to operate

* The National Assembly has issued a resolution as a legal basis, the Government and localities have established a steering committee, so what is the next step to put the International Financial Reporting Center into operation?

- After the National Assembly issues the resolution, the Government will continue to issue decrees, then Ho Chi Minh City and Da Nang will issue specific decisions to establish units in the financial center.

Along with the completion of the institutional and legal framework, Ho Chi Minh City is implementing the investment in building an operating agency, organizing the personnel apparatus, and training human resources. We also have a temporary headquarters at 8 Nguyen Hue (Saigon Ward) to operate while waiting for the completion of the International Financial Center in Thu Thiem.

The city is also investing in infrastructure for the International Financial Center, including both hard and soft infrastructure. With these steps, the center's initial operations may begin from September 1 onwards.

* As a "latecomer" financial center, should we learn from a model suitable for Vietnam or build a completely new model?

- In my opinion, we need to approach in parallel. First, we need to learn models that are compatible with us. In this financial center, there will be many activities and many exchanges.

There are completely new exchanges, but there are also exchanges that will learn, even buy technology or services from abroad, for example Nasdaq or the Chicago Board of Trade, so they can set up their own on-site trading floors.

Currently, we are still in the process of researching and choosing, but priority will be given to activities such as capital for investment and development. The investment demand of the whole country is very large, so we will have bond exchanges to mobilize foreign currency resources. In addition, it is also necessary to build regulations and technology to operate new exchanges such as digital asset exchanges, green finance, and carbon credits.

Latecomer but has many advantages

* The key factors of a successful international financial center are superior policies, synchronous infrastructure and ecosystem, high-quality human resources and international connectivity. So what are the advantages of Vietnam's international financial center?

- Each country has its own advantages, being established later helps Vietnam learn from experience and issue the most attractive institutions for investors.

Political and macroeconomic stability are Vietnam's most important advantages. In addition, we have a large market and economic openness with total import-export turnover of over 800 billion USD, and GDP per capita is entering the upper middle income level.

Investment in synchronous infrastructure such as promoting urban transport infrastructure projects, Long Thanh airport, Cai Mep - Thi Vai port cluster, Can Gio international transit port, free trade zones and soft infrastructure such as institutions, policies, planning, human resources... will create a complete ecosystem. We also have the presence of many banks, securities companies, foreign investment funds... Policies to attract talents and overseas Vietnamese are also favorable factors.

We will offer the most competitive incentive policies, attracting many large investors, intermediary financial institutions and large financial organizations in the world to register as members.

* Along with successful financial centers, there are also many places that have not met expectations. What should we do to avoid making the same mistake?

- Experience shows that a successful international financial market requires a country to have a solid foundation and a strong economy. That means you must have strong macroeconomics, a developed economy and a strong financial system.

For example , Singapore , their financial center developed thanks to their superior institutions, transparent legal system, developed financial technology as well as having a large international transit port. They need a financial center to serve that international transit port. Moreover, they had a freely convertible Singapore dollar market very early.

Vietnam has liberalized its current account, but not its capital account, so it needs to take very cautious steps. The world has witnessed financial crises when foreign exchange reserves were not guaranteed, leading to capital withdrawals and macroeconomic instability.

Cheap capital mobilization to serve a series of key projects

* In the financial sector, is there a need for a strategy to attract global financial "giants" as "seed capital" similar to attracting FDI "eagles"?

- A financial market that wants to succeed must have large financial corporations. There must be policies for strategic investors so that they can come and invite their friends to invest in Vietnam.

This is the first thing to do. Vietnam can become a place for them to rent, organize, and operate their own trading floor, taking advantage of the time zone difference between markets. This also requires an accompanying ecosystem. For example, investors also need entertainment services, education for their children, tourism, resorts... Vietnam must invest in this ecosystem.

* If successful, will TTTCQT reposition Vietnam on the global financial map and improve the domestic financial system?

- The decision to build this international financial center is to create momentum, to form "locomotives" for the economy to accelerate strongly. The financial factor is very important, because to accelerate, investment and development must come first, and hundreds, thousands of projects are in need of capital, not just domestic capital. The financial center will help mobilize foreign currency capital right in the country at the lowest possible cost instead of having to borrow on the world market.

We will attract many investors to Vietnam, both indirect and direct investment, creating more revenue and income. Vietnam will also attract human resources and talents from the world, as well as Vietnamese people working in financial institutions around the world who are willing to cooperate and work in our country.

Thus, we will achieve many goals: attracting capital, attracting finance, attracting technology and attracting talent. In particular, the International Financial Center requires financial institutions and banks in the center to comply with international standards, thereby helping the financial system operate more safely and effectively. Those are the benefits that the International Financial Center will bring in the coming time.

The staff for the International Trade Center in Ho Chi Minh City is very high quality.

Currently, the National Assembly's resolution has issued many of the most favorable institutions, including visa issues for investors coming to Vietnam and tax policies. But the most important factor at present is still the human factor. This apparatus will be an intellectual apparatus, requiring high-quality human resources, people who have worked in financial institutions around the world.

Therefore, the recruitment of human resources for this International Financial Center plays a very important and decisive role. In Ho Chi Minh City, the candidates are very qualified and we are in the process of evaluating to select excellent personnel to contribute to the development of this International Financial Center. From there, the International Financial Center can spread to many other areas of our state management.

Tuoitre.vn

Source: https://tuoitre.vn/co-hoi-vang-kien-tao-trung-tam-tai-chinh-quoc-te-20250803233348784.htm