Deputy Prime Minister Nguyen Hoa Binh introduces to National Assembly deputies the role and significance of international financial markets - Photo: VGP
Convergence of all conditions for building and developing TTTC
Referring to the general perception of the financial market, Deputy Prime Minister Nguyen Hoa Binh emphasized that the financial market is "a diverse ecosystem of financial services concentrated in a certain area", gathering many financial institutions (banks, investment funds, financial service companies...) and trading floors (securities, currencies, commodities) with a diverse support service system.
Building a financial market means forming an area with its own, superior, and specific policies and legal framework to attract investors to provide financial products, services, and related non-financial services connected to international financial markets.
The level of development and competitiveness of the financial market is assessed according to the Global Financial Market Index (GFCI) based on 5 pillars: Business environment; financial ecosystem; infrastructure; human resources; reputation and brand of the city.
The conditions for building a financial market include necessary and sufficient conditions. Specifically, the necessary conditions are: Political determination at the highest level; prestige, attractiveness to the international community; political and macroeconomic stability; transparent policy institutions; potential financial market; favorable business environment; large enough economic scale, stable growth; open legal framework, according to international standards; high connectivity.
In terms of sufficient conditions, these are high-quality human resources; synchronous infrastructure; a developed and competitive financial ecosystem and a full support service system.
"These are the conditions that make the financial market attractive and we have all these conditions to build and develop the financial market," Deputy Prime Minister Nguyen Hoa Binh emphasized and said that members of the financial market include: Commercial banks, securities companies, insurance companies and reinsurance companies; investment funds and asset management companies; market infrastructure operating organizations (stock exchanges, payment centers, etc.); financial technology organizations (fintech) and digital asset trading organizations; organizations providing financial consulting and support services; non-financial organizations (enterprises in other fields participating in activities at the financial market); innovation support organizations (startup incubators, research centers, etc.); other entities as prescribed.
TTTC's products and services include: Stocks, bonds (government, corporate, construction bonds), investment fund certificates; financial derivatives, such as forward contracts, futures contracts, options contracts, swap contracts; alternative investment instruments (private equity funds, venture capital funds, hedge funds, etc.); investment fund management services; insurance and reinsurance products; banking and foreign exchange services (loans, savings, asset management, etc.); green financial products; carbon credits; financial technology services (fintech) and digital asset products; other products and services according to market demand.
There are currently 119 financial centers in the world. Ho Chi Minh City is considered one of the 119 financial centers in the world.
Attracting international capital flows, promoting economic growth targets
Affirming the necessity of building a financial market in Vietnam, Deputy Prime Minister Nguyen Hoa Binh emphasized that building a financial market in Vietnam aims to attract international capital flows and promote the economy to achieve double-digit growth in the new era - the era of strong, civilized, and prosperous development of the nation.
At the same time, it creates momentum to make strategic breakthroughs in building a synchronous and modern infrastructure system, especially transport, energy and digital economy infrastructure.
TTTC also contributes to the development of science, technology, innovation and national digital transformation. Accelerate the process of building digital asset management solutions, developing new and modern financial technology (fintech) to meet the needs of the financial market in the new era.
Connecting Vietnam to the global financial market, enhancing the country's role, position and prestige; contributing to ensuring national security and defense "early and from afar"; making Vietnam an important financial gateway, anticipating international capital flows and taking advantage of opportunities from the trend of shifting global supply chains.
Strengthen social security, create jobs, attract high-quality human resources; form a network of experts, large financial investors and leading intellectuals to Vietnam.
Besides, it is to improve the quality of local life through the development of modern utility services. Complete the legal framework in accordance with international standards in the financial and monetary fields, creating confidence for investors.
The Deputy Prime Minister said that the general goal of building a financial market is to effectively mobilize resources and financial services to serve socio-economic development; build a transparent, efficient, modern, advanced financial ecosystem, form and develop a market for new financial products, keep up with market trends and international standards, and connect globally - Photo: VGP
Develop new financial products, keep up with market trends and international standards
Deputy Prime Minister Nguyen Hoa Binh said that the general goal of building a financial market is to effectively mobilize resources and financial services to serve socio-economic development; build a transparent, efficient, modern, and advanced financial ecosystem; form and develop markets for new financial products, keep up with market trends and international standards, and connect globally.
The specific goal is to establish an international financial center in 2025, located in two locations: Ho Chi Minh City and Da Nang City. By 2035, Vietnam's international financial center will be ranked among the top 75 financial centers in the world according to GFCI rankings (including fintech criteria) and by 2045, it will be ranked among the top 20 financial centers in the world.
The policy of building financial centers in Ho Chi Minh City and Da Nang was affirmed in the Conclusion of the Politburo, in which the Politburo emphasized major guiding viewpoints.
Specifically, it is a breakthrough mechanism and policy: Applying a unique and superior management mechanism (breakthrough institution) compared to current regulations to create competitiveness, while also accompanying appropriate risk management and monitoring mechanisms.
Cautious but decisive: Proceed step by step, learn from experience as you go; don't be hasty but don't be perfectionist, avoid missing opportunities.
Innovation in management thinking: Innovation in thinking in law making; resolutely abandon the mindset of "if you can't manage, then ban".
Seize the opportunity: Speed up the implementation as quickly as possible; if the opportunity is favorable and the conditions are ripe, then it can be done immediately, without waiting for order.
Synchronous coordination: Agencies from central to local levels coordinate closely, under the direction of the National Steering Committee on TTTC, to ensure the correct progress and roadmap.
Ready resources: Along with building laws and policy mechanisms, Ho Chi Minh City and Da Nang must prepare infrastructure and human resources. This is a prerequisite and key condition…
The Deputy Prime Minister asked National Assembly deputies to actively participate in giving comments and supplements to complete the draft Resolution on international financial markets in Vietnam so that we can have open policies that are attractive enough to investors in accordance with the direction of the Politburo; then support the National Assembly to pass the Resolution - Photo: VGP
Factors ensuring the success of international financial markets in Vietnam
Deputy Prime Minister Nguyen Hoa Binh also mentioned the factors ensuring the success of international financial markets in Vietnam.
That is, the Politburo has a policy on building a financial center in Vietnam. The Government is strongly directing the construction of an international financial center at two locations.
Stable political and social environment, the basis for consolidating and enhancing the confidence of people and investors. Stable macro-economy, sustainable growth; many favorable factors for developing a modern financial market. Positive growth prospects thanks to an improved business investment environment, deep international integration, promoting digital transformation and innovation.
Strategic geo-economic location, convenient connectivity within ASEAN region and globally. Huge demand for financial resources for double-digit growth; increasing scale and quality of financial market, diversified products and services, attracting many domestic and foreign investors.
According to the Permanent Deputy Prime Minister, the draft Resolution of the National Assembly consists of 6 chapters and 35 articles and the TTTC has 4 management agencies including: the Steering Committee for International TTTC headed by the Prime Minister; the executive agency; the supervisory agency; the dispute resolution agency (international arbitration center under the TTTC and specialized court).
Outstanding preferential policies of the international financial market in Vietnam include: Policies on trading floors; tax policies and financial incentives; insurance policies; policies on infrastructure and land; policies on human resources and visas;...
Deputy Prime Minister Nguyen Hoa Binh asked National Assembly deputies to actively contribute ideas and supplements to complete the draft Resolution on international financial markets in Vietnam so that we can have open, transparent and innovative policies that are attractive enough to investors and businesses in accordance with the direction of the Politburo; then support the National Assembly to pass the Resolution.
At the same time, when the Resolution is passed and after a period of reasonable operation of the international financial market in Vietnam, the Resolution will be summarized and the National Assembly will be requested to soon promulgate a law on international financial markets in Vietnam.
Hai Lien
Source: https://baochinhphu.vn/trung-tam-tai-chinh-quoc-te-tai-viet-nam-he-sinh-thai-tai-chinh-hien-dai-canh-tranh-toan-cau-the-che-dot-pha-102250611104457767.htm
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