Developing an International Financial Center: Da Nang Attracts Sustainable Financial Services

On the morning of November 6, the seminar "Positioning and developing the Vietnam International Financial Center in Da Nang City: Opportunities to attract transactions and investments" was organized by the People's Committee of Da Nang City in coordination with the International Finance Corporation (IFC) - a member of the World Bank Group.

Scene of the seminar "Positioning and developing the Vietnam International Financial Center in Da Nang City: Opportunities to attract transactions and investments" organized by the City People's Committee in coordination with the International Finance Corporation (IFC) - a member of the World Bank Group on November 6. Photo: MAI QUE

Promoting supply chain finance to Da Nang

Mr. Jinchang Lai, Chief Specialist and Head of the Asia- Pacific Financial Infrastructure Development Group, Financial Institutions Advisory Group, IFC, said that Vietnam and the Mekong sub-region still do not have a real trade finance and supply chain finance center. Therefore, with the orientation of the International Financial Center in Da Nang focusing on specialized financial services, it will be very suitable to make Da Nang an attractive destination for this field, in addition to related supply chain management services. The more transactions will help attract large mobilized capital and financial institutions to set up headquarters in the Da Nang Financial Center.

“The concentration or clustering of trade finance and supply chain finance is facilitated by effective legal, regulatory and institutional frameworks; for example, financial infrastructure, industry-level common services, less dependence on land allocation or tax incentives. Therefore, a suitable legal system, a flexible and practical judicial approach; proactively improving the competitiveness of the economic value chain, developing cross-border transactions... are some solutions for implementation,” Mr. Jinchang Lai proposed.

Meanwhile, Mr. Lin Hui, Director of the Asia region of the FCI International Association, suggested that Da Nang should build its own standard framework based on proven international rules; and should coordinate with international organizations, including FCI, to implement specialized training programs on receivables-backed financing and supply chain financing.

Mr. Lin Hui said that Da Nang being allowed to operate a controlled testing framework (sandbox) will create conditions for global businesses to test new digital trade models and financial technologies, thereby promoting innovation in the financial ecosystem. Da Nang needs to assert its position in niche areas, not competing according to the "comprehensive financial center" model like traditional financial centers, but positioning itself to become the world's new center for sustainable supply chain financing.

Attracting fintech investors

On the other hand, Professor Nguyen Xuan Thao, Director of the Asian Law Center, Washington University School of Law (USA), said that to promote the market of non-depository lending institutions (NDTLs), it is necessary to build a specific and convenient legal framework such as quick licensing, tax incentives and expanding the viable business areas of non-depository lending institutions.

Sharing the same view, Mr. Perapong Srivipapattana, Director of Client Relations at IFS Capital Group, said that Da Nang has a great opportunity to become a regional Fintech hub thanks to its growing technology ecosystem, young workforce, high priority of the government on digital transformation and commitment to attracting foreign investment. Da Nang has the opportunity to lead in 3 important areas: green finance in line with sustainable development goals; trade finance promoted by the free trade zone model; sandbox mechanism to safely test new financial technologies.

To attract fintech investors to Da Nang, according to Mr. Perapong Srivipapattana, it is necessary to strengthen the complete fintech ecosystem, position Da Nang as Vietnam's smart finance and digital innovation center, and connect with ASEAN. In addition, it is necessary to build a favorable legal and business environment, shorten the licensing, visa, and office establishment processes, including tax support packages and other incentives.

Da Nang also needs to strengthen its public-private partnership network with international financial institutions or development funds to jointly invest in Fintech infrastructure. The city can promote its image in financial technology markets such as Singapore, Hong Kong (China), Seoul (Korea) ... to attract investors already operating in this field.

Source: https://baodanang.vn/phat-trien-trung-tam-tai-chinh-quoc-te-da-nang-thu-hut-dich-vu-tai-chinh-ben-vung-3309402.html