Financial center will be the outstanding advantage of Da Nang

Possessing many great advantages, the successful construction of the Financial Center in Da Nang can contribute from 3-5 billion USD annually to Vietnam's GDP.

Advantages of Danang

At the International Financial Center Development Conference in Vietnam, Mr. Andy Khoo - General Director of Terne Holdings Group said that the Da Nang Financial Center can contribute an additional 3-5 billion USD annually to Vietnam's GDP.

According to Mr. Andy Khoo, Da Nang possesses many outstanding strengths to build a financial center.

First is the geographical balance, with its location in Central Vietnam, the Da Nang Financial Center ensures nationwide financial accessibility and reduces over-reliance on a single financial center.

Next is the specialized strength, different from the Financial Center in Ho Chi Minh City, the Da Nang Financial Center can specialize in green finance, trade facilitation and fintech innovation, in line with global market trends.

Third is inter-center cooperation, the Da Nang Financial Center acts as an innovation laboratory, testing new financial technologies and integrating them into the developed ecosystem of Ho Chi Minh City.

Da Nang city has many advantages to build a financial center.

According to Mr. Andy Khoo, to position Da Nang as the next financial hub of Southeast Asia, it is necessary to focus on three strategic pillars, in line with the city's unique strengths and opportunities. These are green finance, FinTech innovation and Trade Finance.

On green finance, Vietnam has committed to achieving net zero emissions, which together with ASEAN’s US$1 trillion green finance need by 2030 presents an incredible opportunity.

The Da Nang Financial Center can lead the way in this area by issuing green bonds, facilitating carbon credit trading, and developing financial products specifically for sustainability-minded investors.

With FinTech innovation, Da Nang can become a sandbox for startups in the fields of: Blockchain, Digital Payment, New generation artificial intelligence-based financial solutions (Gen AI).

Third, Trade Finance, Da Nang location, near important trade routes within the framework of the Regional Comprehensive Economic Partnership (RCEP) and the Comprehensive and Progressive Agreement for Trans- Pacific Partnership (CPTPP).

In addition, together with major ports such as Tien Sa and Lien Chieu, the City becomes a natural center for commercial finance.

Dr. Andreas Baumgartner EMBS - Metis Institute believes that successful international financial centers are based on 5 core factors.

In which, clear positioning and specific value proposition. Strong, transparent, trustworthy governance and legal environment. Attractive physical environment.

Next is the active community and perseverance, excellence in execution.

Da Nang City has signed many cooperation agreements to develop the Financial Center.

According to Dr. Andreas Baumgartner EMBS, successful International Financial Centres bring a unique value to the market. No centre succeeds simply by labeling itself as an “International Financial Centre”.

As Vietnam establishes not one but two International Financial Centers, in both Da Nang and Ho Chi Minh City, it is important to clearly differentiate the two. Each center needs to have a specific, clear value proposition to avoid confusion or competition.

In addition, successful International Financial Centres need a strong, transparent and trustworthy regulatory and governance environment.

In addition, a good International Finance Centre needs to provide an attractive physical environment. The physical environment is the first “business card” that is noticed, and it needs to send a clear message. Not only is it a place to create business opportunities, the overall environment of an International Finance Centre must also attract talent, who are attracted not only by the career opportunities but also by the lifestyle that the centre offers…

Ready to build a financial center

To serve the establishment of the Financial Center complex, Da Nang City has planned a land fund of 6.17 hectares with the conditions of connection location and the best infrastructure in Vietnam to design office functions, provide resort, conference, entertainment and utility services. Arrange a land area of 9.7 hectares to develop financial technology services adjacent to Software Park No. 2.

Da Nang City said that in the long term, according to development needs, Da Nang will study to create a new land fund to expand by 62 hectares to form a complex with full scale and development space, increase the attractiveness of developing the infrastructure of the Financial Center and attract other investors to operate at the Da Nang International Financial Center.

Da Nang City has available land to build a Financial Center.

Regarding the general model, the Danang City Financial Center proposes to develop a multi-component ecosystem, focusing on 3 service groups.

Firstly, providing international financial services such as payment services, international trade, risk management and foreign exchange trading services, green financial services. Including financial services associated with the development of the Da Nang Free Trade Zone.

Second, Fintech and TechFin services such as providing software, application platforms to perform payment services, crypto asset transactions, innovative solutions in the financial sector based on artificial intelligence, big data, cloud computing, blockchain... At the same time, providing incubation space for startups, Fintech companies seeking growth, innovation and internationalization.

Third, are investment support services, business development and utility services such as auditing, accounting, legal services, tax consulting, customs, resort services, conferences, casinos, leasing, real estate valuation and related assets to create a diverse ecosystem, developing Da Nang in the direction of a world financial and entertainment center...

Speaking at the Workshop on Developing International Financial Centers in Vietnam, Da Nang Secretary Nguyen Van Quang hopes to continue receiving advice from experts, as well as investment commitments from investors.

The Secretary of Da Nang affirmed that there is no distinction between the two financial centers of Ho Chi Minh City and Da Nang.

“The concepts of international finance and regional finance are relative, there is no distinction between the two financial centers of Ho Chi Minh City and Da Nang. The two centers are two independent centers with functional roles and interactions with each other. The city wishes to receive advice, especially commitments from investors when investing in the Financial Center in Vietnam,” said Mr. Nguyen Van Quang.

Source: https://baodautu.vn/trung-tam-tai-chinh-se-la-loi-the-vuot-troi-cua-da-nang-d243663.html