Ho Chi Minh City Financial Center affirms its position on the global financial map

According to the recently released 38th Global Financial Centres Index (GFCI 38), Ho Chi Minh City ranked 95th out of 120 cities, up 3 places compared to the previous assessment. Ho Chi Minh City is rising strongly on the world financial map, aiming to become an International Financial Centre of Ho Chi Minh City (IFC-HCM) by 2030. Ho Chi Minh City's position on international financial rankings is also constantly improving, reflecting its determination and potential to reach new heights.

To realize its aspiration to become a high-tech financial center by 2030, Ho Chi Minh City is implementing a bold and synchronous development strategy. IFC-HCM focuses on creating a superior innovation environment, attracting international capital and talent, and deeply integrating modern technology into all financial activities. Below are the prominent strategic pillars:

Open sandbox for fintech innovation

IFC-HCM pioneers the application of a large-scale sandbox mechanism (controlled experimentation), allowing fintech startups to test emerging financial products and services in a specially managed environment. Bold ideas from cryptocurrencies, digital assets to blockchain and AI applications will be facilitated to be "incubated" right at the center. This is truly an "open laboratory" to help Vietnam attract new start-up projects and financial technology initiatives, creating unique models that are competitive in the region. This open sandbox mechanism demonstrates the breakthrough thinking of policymakers: Flexible, receptive but still safe, aiming to reconcile innovation with system stability.

Perspective of a corner of Ho Chi Minh City International Financial Center seen from Thu Thiem area

PHOTO: HH

Attract financial "eagles" with outstanding incentives

To reach international standards, IFC-HCM aims to become an attractive destination for leading investors and financial institutions. The Government and Ho Chi Minh City plan to issue a series of unprecedented incentives from strong tax exemptions and reductions to open visa policies for foreign experts and their families. In particular, administrative procedures will be simplified to the maximum under the "one-stop" mechanism, creating unprecedented convenience for investors. IFC membership registration applications can be submitted online and will be assessed extremely quickly within just 1 working day for temporary approval, and no more than 7 days for official recognition.

This "lightning-fast" licensing time is a record short compared to the usual practice. Even Fortune 500 corporations will be automatically recognized as members without assessment, in order to attract real financial "eagles" to nest. All other specific procedures (such as fintech testing licensing) are also handled on the spot by the central management agency, avoiding hassles through many levels. It can be said that IFC-HCM is rolling out the red carpet with unprecedented preferential mechanisms and quick procedures, ready to welcome large capital flows and global financial institutions.

Blockchain and AI technology as pillars of development

Unlike traditional financial centers, IFC-HCM is positioned as a high-tech financial center, in which blockchain and artificial intelligence (AI) are two strategic pillars. This means that all core activities of the center will be "powered" by the latest technology. Blockchain is applied to build a distributed ledger infrastructure, making financial transactions transparent, secure and allowing the deployment of smart contracts in many services. AI supports big data analysis, automates processes and creates smarter financial products.

In addition, IFC-HCM also aims to apply a series of strategic technologies such as robo advisor, quantum AI, cloud computing, quantum computing, big data, quantum blockchain (quantchain)... to create outstanding competitive advantages. In that general picture, IFC-HCM will focus on promoting the strengths of blockchain and AI to both modernize financial services and affirm the identity of a leading high-tech financial center in the region.

Automate and intelligently manage every transaction

Extensive application of technology will help IFC-HCM automate many previously manual financial operations, from transactions, payments to management, licensing and customer care. Digital trading platforms using blockchain can enable near-instantaneous 24/7 payments and money transfers, minimizing errors and eliminating the need for traditional intermediaries. AI and machine learning technology will be integrated into the monitoring and risk management system, helping to monitor the market in real time and detect early signs of fraud or unusual transactions.

In terms of state management, the center will have a specialized management and supervision agency on site, taking on all inspection and examination tasks instead of being subject to the overlapping of many agencies like outside. At the same time, Vietnam also builds detailed regulations on anti-money laundering, cybersecurity for cryptocurrencies, digital assets, management of activities related to NFT, tokens... to limit risks when allowing testing of new financial technologies. All to ensure that despite the high level of automation, the new financial system is still under safe control. According to the orientation before 2030, Vietnam wants to own an open blockchain infrastructure that connects globally, ensuring safety, security, and transparency for all transactions, while creating a smooth bridge for international capital flows.

IFC-HCM is transforming itself into a new symbol of Vietnam on the world financial map - a technology-based, dynamic and inspiring international financial center. From steady progress in global rankings to a breakthrough development strategy to 2030, Ho Chi Minh City shows a harmonious combination of international vision and concrete actions. If this momentum can be maintained, not only investors and fintech businesses, but also the public will soon witness a Ho Chi Minh City strongly rising to become the leading financial - technology destination in the region, contributing significantly to the prosperity of Vietnam and the region.

Associate Professor, Dr. Nguyen Huu Huan - Member of the advisory team to establish IFC-HCM

Source: https://ttbc-hcm.gov.vn/trung-tam-tai-chinh-tp-hcm-khang-dinh-vi-the-tren-ban-do-tai-chinh-toan-cau-1019657.html