Key Legal Framework for an International Financial Center in Vietnam

Investment Newspaper talked with Mr. Michael Chin, Independent Member of Vingroup's Board of Directors, about key priorities in the early stages.

Mr. Michael Chin, Independent Member of Vingroup Board of Directors.

In your opinion, what does the Prime Minister's direction to put IFC into operation in November reflect about the Government's determination?

This directive is a strong signal, showing that the Government wants relevant agencies to act quickly and focus on clear goals. This sends a message to international investors that Vietnam is serious about building a real financial center, becoming a national priority. At the same time, this is also an affirmation that Vietnam does not want to fall behind financial centers in the region.

What factors need to be improved for IFC to operate effectively, sir?

Vietnam needs a solid legal framework, especially on foreign exchange, capital flows, dispute resolution mechanisms, and coordination between Ho Chi Minh City and Da Nang. Regulations on taxes, visas, and licensing also need to be synchronized. It is necessary to identify key management agencies with the authority to license and supervise sandboxes, and establish a transparent and convenient one-stop service center to create confidence for investors.

In addition, publicizing dispute resolution mechanisms, risk assessment standards and transparent financial reporting will be important steps to help IFC gain international recognition.

At the initial activation stage, what minimum conditions does IFC need to meet to attract international financial institutions?

In the first 30 days, Vietnam needs to announce a basic legal framework, establish an IFC management body, and publicize a specific roadmap. Even simple but visible progress can help build trust.

Investors want transparent legislation, clear capital flow rules, specific tax frameworks, structured licensing processes, physical infrastructure and digital platforms. This will help international organizations recognize IFC as a real operation, not just a project on paper.

Which market model should Vietnam learn from? Dubai, Singapore, or build its own model?

Models like Singapore or Dubai apply specific regimes according to international standards, but still within the national legal system, with a reliable dispute resolution mechanism. Vietnam can learn from experience, but should build its own model, linking IFC with manufacturing, supply chains, green finance, digital finance and high-tech sectors. A specialized IFC court is also a positive idea, helping to increase transparency and credibility in the eyes of international investors.

What are your suggestions for simplifying procedures and establishing regulatory sandboxes for fintech and digital financial solutions?

Low- and high-risk activities should be separated. Low-risk areas should be approved quickly, with clear deadlines. Sandboxes could focus on fintech, green finance, digital assets, cross-border payments and compliance technology. The process should be simple, digital and easy to understand. This not only makes it easier for investors, but also encourages businesses to innovate and test new financial solutions in a supervised environment.

In the context of fierce competition among regional IFCs, sir, what are Vietnam's strengths and weaknesses?

Strengths include a real economy, deep supply chains, competitive costs, and a young, dynamic workforce. Weaknesses include a complex management mechanism, limited international experience in the financial sector, and few experts fluent in English.

Vietnam has the opportunity to leverage its real economy and political will to build an IFC that complements other regional hubs, rather than competing head-on. Focusing on unsaturated segments such as green finance, manufacturing fintech, and financial logistics will help IFC quickly make its mark.

Which strategic segments should Vietnam prioritize to build the IFC brand, sir?

It is necessary to focus on green finance, fintech, production-related financial technology, and financial logistics services. These are areas that take advantage of existing advantages, create identity, and are suitable to Vietnam's strengths.

For large financial institutions, the legal framework and human resources are decisive, but real profit opportunities are the main driving factors. IFC needs to build financial products and investment support services, such as green bonds and technology venture capital funds, to attract international investors.

What recommendations do you have for the Government to help IFC operate effectively from November?

In my opinion, it is necessary to clearly define what IFC can license in the early stages. Illustrate how IFC management actually works. Communicate a 1-year, 3-year and 5-10-year roadmap to help investors understand the long-term direction. At the same time, it is necessary to launch an international communication campaign, introducing investment opportunities and incentives for financial institutions, to help IFC stand out from the early days.

Sir, what is the long-term vision of the IFC Vietnam Advisory Council for the center? What 5-10 year strategy should be pursued?

Vietnam should position IFC as a high-growth regional hub, linked to the real economy and supply chains. The long-term strategy focuses on integrating IFC into the regional financial network, while leveraging Vietnam's unique advantages.

IFC needs to develop digital services, support businesses in capital flow management, information transparency, and connection with regional and global investment funds, in order to become a reputable, flexible, and competitive financial center in the region.

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