How will Ho Chi Minh City International Financial Center develop?

Discussing the orientation of building a Financial Center in Ho Chi Minh City with Korean businesses and experts at the Dialogue Conference between Ho Chi Minh City leaders and Korean businesses in 2025, Ms. Nguyen Truc Van, Director of the Ho Chi Minh City Center for Socio -Economic Simulation and Forecasting, said that the Ho Chi Minh City International Financial Center will play a role in providing financial services including capital mobilization, investment, savings, payment, issuance of financial products, etc.

Ho Chi Minh City is considering the option of an international financial center developed based on the financial district in District 1 and the financial district in Thu Thiem. (Photo: Luong Y)

The project to establish an international financial center in Ho Chi Minh City will be divided into three phases. The first phase will develop a solid foundation for a national international financial center (2025 - 2030); the second phase (2031 - 2035) will be a regional financial center and the third phase (after 2035) will be an international and global financial center.

The focus of the project is to develop core financial services to finance economic growth, domestic trade and shape the future of Vietnam's digital finance.

At the same time, attract a diverse financial business ecosystem (fund management, asset management, brokerage, insurance, etc.) and build Ho Chi Minh City into a fintech (financial technology) destination in the region. Through this, Ho Chi Minh City hopes to contribute to realizing Vietnam's goal of net zero emissions by 2050.

From the development orientation of the Ho Chi Minh City International Financial Center and the development orientation of Ho Chi Minh City into a smart city, the development of the International Financial Center is determined within a specific geographical scope and linked to the urban development orientation of the City.

Ms. Truc Van mentioned that Ho Chi Minh City is considering the option of developing an international financial center of Ho Chi Minh City based on the existing financial district in District 1 and forming a financial district in Thu Thiem. These two districts will complement each other, with traditional financial services still concentrated in the existing financial district; and innovative financial services will be concentrated in the new district.

Ho Chi Minh City International Financial Center consists of three components: the money market and banking system; the capital market and the derivatives market.

New financial services that Ho Chi Minh City has chosen to innovate include fintech and digital banking; connecting fintech and startups in other business sectors; green finance and commodity exchanges.

Korean investors and businesses are very interested in the Ho Chi Minh City International Financial Center which is being prepared for implementation. (Photo: P. Quoc)

According to expert Michael Jaewuk Chin, from Korea's experience in building a Northeast Asian financial center, he emphasized three factors to pay attention to when building an international financial center, which are building financial infrastructure, regulatory reform and technological innovation (digital banking, mobile finance, blockchain).

To promote Vietnam-Korea cooperation, Mr. Michael Jaewuk Chin proposed that the Ho Chi Minh City financial center implement a green bond system, a joint carbon credit trading project and cooperate in developing renewable energy. This expert affirmed that green finance is not only the key to helping Ho Chi Minh City become an international financial center, but also creates momentum for sustainable development of both countries.

According to him, in the strategy to develop a potential financial center, Ho Chi Minh City should focus on building a supply chain financial market and a commercial financial center, creating information technology infrastructure, fintech digital finance, applying green finance and a sustainable financial ecosystem. These strategies can make Ho Chi Minh City the center of the Southeast Asian region.

He said that Korea has applied and achieved many results, including supporting carbon emission reduction through green bonds and sustainability bonds.

This expert also proposed a financial cooperation plan between Ho Chi Minh City and Korea in the future, including building a green bond issuance system between state agencies and financial institutions through cooperation with Korean financial institutions; developing a joint carbon credit trading project and developing an energy project for partners of global enterprises and Korean enterprises in Vietnam.

He believes that the scale of green bond issuance in Vietnam in 2023 will reach 3 billion USD.

Ha Linh

Source: https://vtcnews.vn/trung-tam-tai-chinh-quoc-te-tp-hcm-se-phat-trien-the-nao-ar933736.html