The advantage of being a "latecomer"

The draft Resolution on an International Financial Center in Vietnam is expected to be submitted to the National Assembly for consideration and approval at the upcoming Ninth Session, following the procedure of a single session.

Commenting on the draft Resolution, the members of the National Assembly Standing Committee stated that the National Assembly Resolution should only focus on stipulating framework issues, general principles, and clear and stable contents; while specific and detailed contents will be left to the Government and the Prime Minister to regulate, and responsibilities and powers will be delegated to Ho Chi Minh City and Da Nang City to ensure flexibility and timeliness in the organization and operation of the Center.

The Government's proposals for an International Financial Center at the 44th session of the National Assembly Standing Committee have also undergone significant changes compared to the initial 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. According to the Government's proposal, the International Financial Centers located in Ho Chi Minh City and Da Nang will develop harmoniously, with a relative differentiation based on regional advantages. Ho Chi Minh City will focus on developing capital markets, international banking, financial services, and regional supply chains, while Da Nang will focus on green finance, OFC finance, fintech, and regional fund management linked to free trade zones.

The formation and operation of an international financial center is not new to the world, but it is unprecedented in Vietnam. Even globally, the development of such centers is not easy. In fact, there are currently around 120 international financial centers worldwide, but according to Minister of Finance Nguyen Van Thang, only fewer than 10 are truly successful. "To have a truly successful international financial center is extremely difficult and challenging," Mr. Thang stated. Therefore, the government's caution in building the legal framework for an international financial center is absolutely necessary to ensure the success of this model.

Vietnam is a latecomer, so the challenges to establishing an international financial center will undoubtedly be even greater. But this is a task, as Deputy Prime Minister Nguyen Hoa Binh affirmed, "it is a necessity for the upcoming breakthrough development phase of the country."

From a positive perspective, because Vietnam is a latecomer, it "has the right" to learn from countries that have gone before it, selecting successful and appropriate experiences, avoiding failures, and determining a more suitable, creative, and correct path forward. Therefore, many members of the National Assembly Standing Committee, after carefully reviewing the draft Resolution, emphasized the need to increase the persuasiveness and breakthrough nature of the policy proposals.

Accordingly, policies regarding international financial centers must be truly groundbreaking, not formulaic, selective, and make the most of the advantages of a latecomer nation, placed within the overall development of the country in the new era, with particular emphasis on unique policies based on Vietnam's own strengths and potential.

Caution in policy design regarding the International Financial Center, as mentioned above, is absolutely necessary, but this does not mean being overly cautious. On the contrary, a thorough assessment of both positive and negative impacts, and selective reference to the experiences of pioneering countries, is a solid foundation for achieving policy breakthroughs while simultaneously establishing effective state management, inspection, and supervision mechanisms, managing risks, ensuring the security and safety of the financial system, maintaining political stability, social order, national defense and security, and foreign relations.

The formation of an international financial center is not only a matter of economic development, but also a "measure" of policy planning, governance, and institutional reform capabilities. With strong political will and a selective yet innovative mindset, we can certainly expect a modern, efficient, and distinctive international financial center model.

Nguyen Binh

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