Former Mayor of London's Financial District: Financial center in Ho Chi Minh City needs unique features

The International Finance Center (IFC) located in Ho Chi Minh City is a national project and the most suitable model is one based on Vietnam's own characteristics.

Mr. Michael Mainelli, former Lord Mayor of London, Executive Chairman of Z/Yen Group - Photo: BRITISH EMBASSY

Speaking with Tuoi Tre Online , Mr. Michael Mainelli - former mayor of the London financial district, executive chairman of Z/Yen Group, a leading trade consultancy in London (UK) - gave his views on the reality that needs to be considered when developing IFC.

Need 5 "good" factors

What is your assessment of the project to establish an international financial center in Vietnam located in Ho Chi Minh City?

We strongly support the idea of ​​establishing an international financial centre in Vietnam to promote economic development. This project focuses on tapping domestic savings and investment, combined with international financial skills to support development projects.

The most important thing is to ensure that investment opportunities are developed transparently and expanded. The geographical location will act as a crossroads between domestic and international. The project is considered a national project, with Ho Chi Minh City as the international connection center, which is very important.

What challenges will Vietnam face when developing IFC in Ho Chi Minh City, in your opinion?

There are five “good” factors needed to develop an IFC including business environment, infrastructure, human resources, quality of life and financial system.

Vietnam is and will face a number of challenges, but none of them are “particularly difficult” to overcome. One of the most important criteria for success is “treating everyone fairly”, which is the rule of law.

It is known that during your term as Mayor of the London Financial District, you visited Vietnam and worked with Vietnamese ministries and sectors on IFC. Could you share the results of the work between the two sides?

I spent a week in Vietnam this past September discussing this project in both Ho Chi Minh City and Hanoi.

Over the past few years, Z/Yen has hosted several delegations from Vietnam, most recently last month with the Chartered Institute for Securities & Investment.

The discussions were both substantive and productive. Several issues were repeatedly raised, including the need to build strong legal institutions, which could be learned from common law regions such as Hong Kong, Singapore, Abu Dhabi and Dubai.

In addition, it is necessary to accelerate the full implementation of international standards, such as international financial reporting standards (IFRS), as well as accelerate professional training for the securities, accounting, and insurance industries.

Need uniqueness and flexibility

Is the traditional international financial center model like London, the semi-classical and reformed model like Singapore, Hong Kong or the new generation model like Dubai suitable for Ho Chi Minh City?

The right model will be uniquely Vietnamese. When I visited Vietnam in September, I shared that we should not try or immediately become Singapore or London.

The key is to take it one step at a time, not rush it, and do it your own way, focusing on the local economy. Vietnam can learn from all the existing models, especially the rapid successes in Dubai and Abu Dhabi, as well as regional financial hubs like Busan.

First, set out the goals you want to achieve, then divide them into stages and implement them. Along with that, always be ready to change according to reality.

Should Vietnam focus on a few specific areas for its financial center or develop broadly?

We should remember that IFC was built to support Vietnam, not to exist for its own form or reputation.

That is, IFC is a tool, a means to serve specific interests such as promoting investment, economic development and creating real value for the country. Therefore, with a large population of 100 million people and a diversified economy, IFC should cover most financial sectors and a wide range of other industries and services.

Some areas that Vietnam can consider further are municipal bonds or green energy projects because they are in line with the orientation of the Fair Energy Transition Partnership (JETP).

Mr. Michael Mainelli is the first London mayor to visit Vietnam in the past 10 years.

In September 2024, Mr. Michael Mainelli visited Vietnam, met with the Ministry of Planning and Investment, the State Bank of Vietnam, the Ministry of Finance and the Central Economic Committee to discuss IFC.

Mr. Michael Mainelli is also the executive chairman of Z/Yen Group, which builds and publishes three prestigious indices on the development of commercial centers twice a year: the Global Financial Centers Index (GFCI), the Smart Centers Index (SCI) and the Global Green Finance Index (GGFI).

Source: https://tuoitre.vn/nguyen-thi-truong-khu-tai-chinh-london-trung-tam-tai-chinh-o-tp-hcm-can-net-doc-dao-20250106200904896.htm