Da Nang is ready to develop a financial center.

“Da Nang is ready to undertake the mission of developing a financial center with fields related to financial technology development, cross-border trade finance...”.

Chairman of Da Nang City People's Committee Pham Duc An signed a Memorandum of Understanding on cooperation with Frankfurt Main Finance Organization.

The above strong affirmation was made by Chairman of the City People's Committee Pham Duc An speaking at the Conference on Investment Promotion in Financial Centers in Vietnam, organized by the Ministry of Finance in coordination with the People's Committee of Da Nang City and the Vietnamese Embassy in Germany in Frankfurt, Federal Republic of Germany.

Prepare resources carefully

Conclusion No. 47 dated November 15, 2024 of the Politburo agreed on the policy of building a comprehensive regional and international financial center in Da Nang city according to a model combined with specific, outstanding policies according to the roadmap, competitive but must be accompanied by monitoring and risk management mechanisms.

Resolution No. 259 dated December 31, 2024 of the Government also issued an Action Plan to implement the conclusions of the Politburo, accordingly directing the city to focus resources on investment in developing infrastructure for the financial center, develop a plan to mobilize resources, including resources from the state budget and private resources, to develop infrastructure to serve the financial center. At the same time, train human resources, hire domestic and international consultants and experts in the process of building and operating the financial center with a modern and synchronous infrastructure system, ensuring easy connectivity with major economic centers at home and abroad; promote and attract investment in the financial center.

Perspective of the International Financial Center in Da Nang. Photo: M.QUE

The Resolution of the 1st Congress of the Da Nang City Party Committee (term 2025 - 2030) has put forward many key tasks and solutions to build a breakthrough city in the new era. Promoting potentials and advantages in conjunction with promoting economic restructuring; promoting private economic development to contribute to improving productivity, quality, efficiency, creating breakthroughs for rapid and sustainable development. Building specific mechanisms and policies for the development of Da Nang City in terms of investment management, finance, etc.

The Eastern region (coastal plain area) is oriented to develop into a chain of functional urban areas (administrative urban areas, heritage urban areas, tourist urban areas, industrial urban areas, seaport urban areas, airport urban areas, educational urban areas), financial centers, tourism, logistics, high-tech industry, clean industry, high-tech agriculture. Developing financial products and services on the basis of applying automation technology, multi-dimensional connectivity and intelligence, ensuring security and safety...

Flexible development with risk control

Orientation to develop Da Nang Financial Center according to a comprehensive model, regional and international scale associated with innovation according to Resolution No. 136 dated June 26, 2024 of the National Assembly; recently, the city has focused on building policy mechanisms, information technology infrastructure, data digitization, completing framework and strategic infrastructure such as airports, seaports, free trade zones, training international financial human resources... to be ready to undertake the mission of developing a modern and innovative regional and international financial center.

The city allocates land fund at Danang Software Park No. 2 to serve the International Financial Center.

However, to form a comprehensive regional and international financial center according to a model combined with specific, outstanding, and competitive policies in accordance with the Politburo's conclusion, the city needs to pay attention to specific contents.

International financial centers are often characterized by high liquidity for capital market activities and international transactions. However, there are risks if there is no solid legal framework to control transactions, especially international capital flows and unusual capital withdrawals by investors and financial institutions. Therefore, it is necessary to build a legal framework to control activities to ensure stability of financial transactions in the short term and flexibility in the long term, limiting economic shocks.

On the other hand, current forms of international financial transactions are mainly based on the network environment, electronic transactions and digitalization, requiring few operators but with financial expertise, working in an international environment. Therefore, it is necessary to build a strong, modern database and internet infrastructure, master technology; have technical measures and processes to protect the system, data and network security.

build policies to encourage the development and creation of new financial products and trading floors, without necessarily investing in building large-scale, high-rise financial centers, to avoid wasting construction investment. The city also needs to have a training mechanism to attract international financial experts and high-quality human resources to work at the financial center.

After the merger, Da Nang city has more advantages with Chu Lai Open Economic Zone which is growing strongly, has many special mechanisms to attract strategic investors, develops free trade zones according to Resolution No. 136 of the National Assembly, multimodal logistics infrastructure system from Tien Sa - Lien Chieu - Chu Lai ports and aviation logistics from 2 international airports Chu Lai, Da Nang... These are factors to increase the potential and position of Da Nang city's financial center in the regional and international arena.

At the same time, the city needs to further promote, call for, and sign investment cooperation agreements with successful financial centers in the world such as New York (USA), Frankfurt (Germany), Tokyo (Japan), Busan (Korea), Singapore... to seek strategic investors and prestigious international financial organizations in the global financial system. The signing of the Memorandum of Understanding on cooperation in developing the Financial Center with Frankfurt Main Finance is a direction that creates a premise for Da Nang city to continue promoting and calling for investors and large international financial corporations to come to the city in the coming time.

Source: https://baodanang.vn/da-nang-san-sang-phat-trien-trung-tam-tai-chinh-3308152.html