The attractiveness of Ho Chi Minh City International Financial Center

Ho Chi Minh City is rushing to complete the necessary procedures to soon operate the International Finance Center. The city will apply a modern financial and management model, attractive enough to attract strategic investors, especially multinational "eagles".

The Saigon Marina IFC Tower (tallest in the photo) is one of the infrastructures that make up the Ho Chi Minh City International Financial Center. Photo: Nguyen Le

Ripe after more than 20 years of incubation

For over 20 years, Ho Chi Minh City has cherished the idea of ​​building an international financial center to mobilize financial resources to meet the growing scale of its economic locomotive.

Dr. Tran Quang Thang, Director of the Ho Chi Minh City Institute of Economics and Management, said that leaders of Ho Chi Minh City have recognized the potential and necessity to build an international financial center.

This potential comes from many factors that combine economic potential, geographical location, preferential policies and financial globalization trends.

Ho Chi Minh City is located in the center of Southeast Asia, near developed economies such as Singapore, Thailand, and Malaysia. This is an international trade gateway, convenient for capital circulation and financial connections.

A large plot of land in Thu Thiem New Urban Area serves to build infrastructure for the Ho Chi Minh City International Financial Center. Photo: Nguyen Le

Vietnam has attracted over 330 billion USD in foreign direct investment. In addition, there is also indirect investment capital through the stock market. Ho Chi Minh City alone attracts capital through the stock market, fluctuating around 45 - 50 billion USD. This capital has contributed to making Ho Chi Minh City a global financial center even though it has not been officially established (ranked 98/119 global financial centers).

Ho Chi Minh City is home to many large banks, securities companies, and financial institutions. The stock capitalization value on the Ho Chi Minh City Stock Exchange (HoSE) accounts for more than 94% of the entire Vietnamese market. In addition, Vietnam has the highest digital economic growth rate in ASEAN, while Ho Chi Minh City is a fintech hub with a strong startup ecosystem.

Speaking about the need to build an international financial center, Dr. Tran Quang Thang emphasized that Ho Chi Minh City has long been an economic locomotive, with the largest economic scale in the country, and the most vibrant investment, production and business activities in the country. In particular, after merging with Binh Duong and Ba Ria - Vung Tau provinces, the city's role as an economic locomotive is even more important, determining the country's GDP growth.

In addition, to meet the development requirements in the coming period, the city needs huge capital, which needs to be mobilized both domestically and internationally. In the infrastructure sector alone, projects such as Long Thanh airport, metro system, high-speed railway... require huge capital that the Ho Chi Minh City International Finance Center can support in mobilizing.

The Central Government has issued special resolutions to develop the Ho Chi Minh City International Financial Center. The city is urgently completing related procedures to soon launch the International Financial Center.

Building an International Financial Center will elevate Ho Chi Minh City's position on the global financial map. Photo: Nguyen Khanh Vu Khoa

Must "attract" strategic investors

Dr. Vo Tri Thanh, former Deputy Director of the Central Institute for Economic Management, said that at all costs, the Ho Chi Minh City International Financial Center must attract strategic investors. Among them, there are strategic investors in infrastructure, strategic investors as a large financial institution with high connectivity capacity, attracting other investors.

To do this, in addition to the application of modern financial technology, a breakthrough governance model plays a decisive role.

Speaking with reporters of Hanoi Moi Newspaper, Associate Professor Dr. Pham Duy Nghia, Director of the Master of Public Policy Program - Fulbright University Vietnam, said that one of the policies that needs to be considered is that the judiciary in the Ho Chi Minh City International Financial Center must be professional, of international standard, and have the right to apply "soft law" popular in international commercial arbitration to resolve business and commercial disputes at the center quickly and effectively.

The Central Government and Ho Chi Minh City have agreed to establish an international arbitration center under the Ho Chi Minh City International Finance Center. Once established, this center will enjoy a special legal regime, strong enough to compete with international arbitration centers in the region.

“Such a judicial mechanism needs an ecosystem, interconnected and supportive, from the internal management of the center, to the relationship with the judicial system, enforcement, practicing lawyers and the welcome of businesses and investors (as customers)”, Associate Professor, Dr. Pham Duy Nghia said.

The capitalization value of stocks on the Ho Chi Minh City Stock Exchange (HoSE) accounts for more than 94% of the entire Vietnamese market, showing the city's investment attraction. Photo: HoSE

At the meeting between the Steering Committee for the construction and development of the Ho Chi Minh City International Financial Center with the Central Policy and Strategy Committee and the Ministry of Finance on September 10, Secretary of the Party Central Committee, Secretary of the Ho Chi Minh City Party Committee Tran Luu Quang requested relevant agencies and units to urgently advise the city to establish an Advisory Group of the Steering Committee before September 20. This advisory group is responsible for developing short-term and long-term plans; at the same time, building the organizational structure, special mechanisms on financial regimes and policies for the team of experts; studying proposals from investors, etc.

Ho Chi Minh City is also preparing to hold a conference to select strategic investors and a team of experts to work at the Ho Chi Minh City International Financial Center.

Source: https://hanoimoi.vn/suc-hap-dan-cua-trung-tam-tai-chinh-quoc-te-tp-ho-chi-minh-715698.html