The advantage of “latecomer”

Commenting on this draft Resolution, members of the National Assembly Standing Committee said that the Resolution of the National Assembly only focuses on regulating framework issues, general principles and clear and stable contents; while specific and detailed contents will be assigned to the Government and the Prime Minister to regulate and decentralize responsibilities and powers to Ho Chi Minh City and Da Nang City to ensure flexibility and timeliness in organizing and operating the Center's activities.

The Government's proposals on the International Financial Center at the 44th Session of the National Assembly Standing Committee have also changed a lot compared to the original plan. Accordingly, instead of establishing a comprehensive International Financial Center in Ho Chi Minh City and a regional Financial Center in Da Nang , there will be only one international financial center with a single policy framework. Also according to the Government's proposal, the International Financial Center located in Ho Chi Minh City and Da Nang will develop harmoniously, with relative distinction based on regional advantages, in which Ho Chi Minh City focuses on developing capital markets, international banks, financial services, regional chains, etc., while Da Nang focuses on green finance, OFC finance or fintech, regional fund management associated with free trade zones, etc.

The formation and operation of an International Financial Center is not new to the world, but it is unprecedented in Vietnam. But even in the world, the development of these centers is not easy. In fact, the world currently has about 120 international financial centers, but the number of truly successful ones, according to Minister of Finance Nguyen Van Thang, is only less than 10. "To have a truly successful international financial center is extremely difficult, extremely challenging," said Mr. Thang. Therefore, the Government's caution in building a legal framework for the International Financial Center is extremely necessary to ensure the success of this model.

Vietnam is a latecomer, so the challenge of forming an international financial center will certainly be even greater. But this is a task, as Deputy Prime Minister Nguyen Hoa Binh affirmed, "that must be done for the upcoming breakthrough development period of the country".

On the positive side, because it is a latecomer, Vietnam has the “right” to learn from the countries that have gone before it to choose successful and suitable experiences and avoid failures, and to determine a more suitable, creative and correct way of taking steps. Therefore, many members of the National Assembly Standing Committee, after reviewing the draft Resolution in detail, emphasized the need to increase the persuasiveness and breakthrough of policy proposals.

Accordingly, policies on international financial centers must be truly innovative, not stereotyped, selective, taking full advantage of the advantages of the following countries, placed in the overall development of the country in the new era, especially focusing on unique policies based on Vietnam's own strengths and potentials.

Being cautious in designing policies on the International Financial Center, as mentioned above, is extremely necessary, but it does not mean being too reserved. On the contrary, carefully assessing both positive and negative impacts and selectively referring to experiences from previous countries is a solid foundation for both policy breakthroughs and effective state management, inspection and supervision mechanisms, risk management, ensuring security and safety of the financial system, political stability, social order, national defense, security and foreign affairs.

The formation of an international financial center is not only an economic development problem, but also a "measure" of policy-making, management and institutional reform capacity. With high political determination, selective thinking but daring to break through, we can fully expect a modern, effective and unique international financial center model.

Nguyen Binh

Source: https://daibieunhandan.vn/loi-the-cua-nguoi-di-sau-post411362.html