Vietnam's advantages over the world
On the afternoon of June 12, the National Assembly discussed the draft Resolution on the International Financial Center in Vietnam.
Delegates said that the world already has outstanding international financial centers (such as London, New York, Singapore, Dubai...). These centers have specialized management systems and their own regulations, independent of the general regulations of the country.
Any disputes arising at the center are handled on-site by international arbitrators or international courts, applying international law.
Being behind the world, to attract international investors, Vietnam needs to demonstrate its superiority.
Delegate Hoang Van Cuong said that the international financial center in Vietnam must apply an open and international legal system, at least like the Dubai Financial Center or the Astana Financial Center of Kazakhstan. There, members participating in transactions can choose to apply foreign laws, depending on the agreement of the parties.
At the same time, the central executive agency is allowed to issue operating rules with contents different from those of current law, but must comply with international practices.
The subjects affected by these regulations are only members of the financial center, so it is not necessary to issue procedures when issuing general regulations for the whole country.
Mr. Cuong proposed that the Prime Minister be the one to sign and issue these regulations, then report to the National Assembly. In other words, the executive agency and the supervisory agency of the international financial center are directly signed and responsible by the Prime Minister.
Although coming later, Vietnam has the opportunity to make a breakthrough thanks to institutional advantages related to digital finance, digital assets, and Fintech technology applications, while the world's classical centers have not yet delved into these fields.
Therefore, delegates proposed to create a truly pioneering, open, attractive, and stable ecosystem for the development of digital finance, digital assets, and Fintech applications at the Vietnam International Financial Center.
Regarding the supervision of the Center's operations, the draft stipulates that the Ministry of Finance, the State Bank, ministries, and ministerial-level agencies coordinate with the center's executive agency and supervisory agency to implement.
According to some delegates, such supervision causes overlap and does not ensure the rule that each task is assigned to only one unit.
The delegates proposed to assign all inspection and supervision activities to the center's supervisory agency. Agencies, ministries and branches can only inspect through the supervisory agency and not directly impact the center.
Delegate Ha Sy Dong (Quang Tri) expressed his opinion that in order to attract strategic investors and ensure transparent governance, it is necessary to clarify the relationship between central agencies (Ministry of Finance, State Bank...) and the Central Executive Agency, avoiding overlapping authority and dispersion of responsibilities.
It is necessary to give more autonomy to the executive agency in issuing specific regulations and administrative procedures without waiting for lengthy sub-law documents.
There needs to be a steering committee, the Prime Minister directly manages.
Speaking to clarify the content of the delegates' concerns, Minister of Finance Nguyen Van Thang said that before submitting the draft Resolution to the National Assembly, the drafting committee consulted with domestic and foreign experts and investors.
The draft has regulations on land and insurance that are even superior to other international financial centers in the world. Some policies have a roadmap for controlled opening and gradual adjustment, including foreign exchange policy and dispute resolution.
The Government also asked for the opinion of the Politburo and the Politburo agreed to establish an international financial center located in Ho Chi Minh City and Da Nang, on the basis of taking advantage of the potential, strengths and differences of each place.
The international financial center located in Ho Chi Minh City will develop the capital market; banking system; currency market; sandbox testing mechanism; Fintech, innovation in financial transactions; specialized trading floors; capital trading platforms; construction of commodity and derivatives trading floors; regional supply chain services, logistics centers.
The regional financial center in Da Nang will develop green finance, trade finance, small and medium enterprises, innovative enterprises, cross-border activities associated with free trade zones. The center will also conduct controlled trials of a number of new models such as digital assets, digital currencies, attract investment funds and develop startups providing consumer services, tourism, trade, and logistics.
The Minister also agreed with the delegates' opinions that it is necessary to improve the capacity of the supervisory agency, and at the same time add another level, the steering committee, directly the Prime Minister.
“The construction of a financial center is unprecedented, and there may be hot capital withdrawals and exchange rate manipulation. Therefore, there should be regulations on monitoring and tracking capital flows into and out of Vietnam, implementing strict reporting regimes, restricting short-term lending, and encouraging medium- and long-term lending,” said Minister Nguyen Van Thang.
At the same time, he affirmed that he had anticipated the risks of speculation, price inflation, and asset bubbles with carbon credit trading floors, so there would be a strict monitoring mechanism.
Regarding dispute resolution mechanisms and agencies, international financial centers currently have only one model: specialized courts or specialized international arbitration in the financial center and use of precedents in all financial centers in the world. Therefore, the draft will also follow this direction.
Source: https://vietnamnet.vn/xay-dung-trung-tam-tai-chinh-quoc-te-viet-nam-di-sau-nhung-co-the-but-pha-2410932.html
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