International Financial Center: 'Springboard' for economic growth

Associate Professor Dr. Nguyen Huu Huan, Head of the Financial Markets Department at the UEH Business School (Ho Chi Minh City University of Economics), said that the International Finance Center will help Vietnam open the "capital door", getting closer to the double-digit growth target.

Associate Professor, Dr. Nguyen Huu Huan, Head of Financial Markets Department at UEH Business School (University of Economics Ho Chi Minh City)

The National Assembly has officially passed Resolution No. 222/2025/QH15 on the International Financial Center in Vietnam and Prime Minister Pham Minh Chinh personally chaired the Conference on the implementation of the International Financial Center in Vietnam. This shows great political determination in realizing this model. How do you assess the opportunities and potential of Vietnam in building an International Financial Center?

Building an international financial center is an urgent requirement. With the target of double-digit growth, our capital needs are huge. Currently, if the current rate is maintained, the credit to GDP ratio of the country is at a very high and alarming level. According to the World Bank, Vietnam's credit to GDP ratio is at about 135%, a very high ratio compared to other countries in the world.

Therefore, if economic growth only relies on money injection or credit growth, the economy is quite risky. Therefore, we need to find other channels to mobilize capital and the International Financial Center is the place to help Vietnam open the "capital door".

Looking at the success of previous countries, such as China, we see that, to achieve a miraculous double-digit growth rate continuously for 10-20 years, this country depends heavily on attracting international capital. In particular, the two financial centers of Hong Kong and Shanghai have contributed greatly to attracting international capital.

Vietnam is planning to develop financial centers in Ho Chi Minh City and Da Nang. This center is expected not only to mobilize capital for domestic enterprises but also to contribute to making Vietnam one of the leading financial centers in the region. This is an institution that creates win-win opportunities, attracting large financial institutions and banks in the world and in the region to Vietnam to seek profits.

In my opinion, Ho Chi Minh City has many advantages and favorable conditions. Even according to the 37th edition of the Global Financial Centers Index (GFCI) published in March 2025, this city is ranked 98th among international financial centers, even though it has not been built yet. Therefore, the country has the opportunity and determination. Now is the time to focus resources on developing an international financial center in Ho Chi Minh City. This center will create a "springboard" to promote economic growth in the coming period.

Ho Chi Minh City has had all the opportunities and conditions necessary to establish an international financial center. This is also the right time to roll up our sleeves and accelerate the realization of this goal.

According to you, what does Ho Chi Minh City need to prepare and invest in to be successful?

From the experience of countries around the world, in my opinion, Ho Chi Minh City can draw the following conclusions. Firstly, the infrastructure must be very developed to facilitate growth spurts. The establishment of the International Financial Center in Ho Chi Minh City is the same. The infrastructure of transportation, hardware and software in the center, especially the trading floors must be complete, interconnected and interconnected with the world. Only then can a complete ecosystem of the International Financial Center be created.

Second, the trading products at this Financial Center must be truly diverse and different from those of major financial centers in the world to create competition. If our financial center only provides traditional financial products, Vietnam will find it difficult to attract investors. Competition through tax incentives is necessary, but not enough. Vietnam's center model must be creative and different in terms of center organization, floor operation and types of products and services.

One of the strengths is that the cost of establishing a business and transaction costs in Vietnam are very low compared to existing financial centers. If we welcome "eagles", they will pay less attention to low costs, but when we welcome "bees", they will certainly pay great attention to costs. We can attract startups in financial technology (Fintech)... This could also be the direction of Vietnam in the new period.

The most important thing is to create a breakthrough business environment and flexible mechanisms to develop new financial and technological models. The International Financial Center in Ho Chi Minh City must be a place where innovation converges...

Third, for the International Finance Center to operate smoothly and effectively, it needs more time for the Executive Board to prepare and develop an implementation roadmap. Currently, we have a Resolution, and soon there will be a Decree and then specific guiding circulars. This is the important legal basis for the operation of this center.

The Saigon Marina International Financial Center building (center) is the starting milestone for the construction of an international financial center in Vietnam, officially inaugurated and launched on August 19. (Source: Masterise Homes)

What are the challenges we face and are the policies the country is building for the International Financial Center sufficient, sir?

To build the International Financial Center, statistics show, a relatively large amount of money is needed for the construction of hardware and software infrastructure. Mobilizing this capital is a big challenge.

Meanwhile, in terms of policy, in my opinion, the International Financial Center in Ho Chi Minh City is more attractive than Singapore. For example, the tax rate of 10% is more attractive than Singapore's 17%. Preferential policies on land lease, tariffs, visas, etc. are also relatively competitive.

It is important that we build a transparent mechanism for approving members to participate in the center and capital flow. At the same time, we must focus on product development and trading floors. This will help the Ho Chi Minh City International Financial Center truly create a highlight in terms of difference and attractiveness.

From an economist's perspective, what do you expect from the success of the International Financial Center in Ho Chi Minh City?

Ho Chi Minh City has had all the opportunities and conditions necessary to establish an International Financial Center. This is also the right time to roll up our sleeves and accelerate the realization of this goal.

The construction of an international financial center cannot be completed overnight, especially when Vietnam is behind many countries in this field. However, we have the opportunity to learn from successful models or identify challenges to shorten the implementation time. For example, if large international financial centers take 7-10 years to form, Vietnam can expect to shorten it to 3-5 years, or even faster if applying new methods and taking shortcuts.

I believe that if we concentrate our efforts and will, Vietnam will build an international financial center successfully and sooner. This center will play a very important role in the country's goal of rising up in the new era.

Source: https://baoquocte.vn/trung-tam-tai-chinh-quoc-te-ban-dap-cho-tang-truong-kinh-te-326178.html