From promises to action.

An international financial center is not merely a wish for capital flows; rather, it is a "test of institutional capacity." Therefore, in reality, the first "passport" Vietnam needs is not just planning, infrastructure, or magnificent skyscrapers, but trust!

Speakers participated in discussions about groundbreaking initiatives to develop a financial center in Vietnam.

When the world calls out the word "Trust"...

Mark Yeandle, the "father" of the Global Financial Centres Index (GFCI), once said: If you had to define the international financial market in just one word, it would be "Trust."

On the map of the world's leading international financial markets, from London and New York to Singapore and Dubai, one factor carries decisive weight: trust in institutions, justice, and the enforcement of laws. The belief that when risks arise, there is still a place to rely on, not just money, but the law. That's why nations understand the truth: "Simply opening up is not enough without trust," and while office buildings may receive money, the legal system is where trust is maintained.

In the context of a volatile global financial system marked by wars, trade conflicts, tariffs, supply chain crises, and currency instability, trust becomes the ultimate asset that sustains value. The nation that can build an institutional space for that trust to thrive will be the destination for capital flows and long-term investment decisions.

But trust doesn't come from promises, but from the proven ability to keep those promises through the ups and downs and challenges of each period of instability.

Vietnam has never experienced a systemic financial shock large enough to test the resilience and sustainability of its institutional space, so how can it prove itself?

International experience shows that we can build that initial trust by incorporating some credibility from external systems. Free trade agreements, investment agreements, international arbitration systems, or references to independent global rating agencies are temporary "bridges of trust" during the formation of a legal system with its own identity.

On the other hand, while leading financial centers are racing for speed and flexibility, Vietnam seems to be choosing a seemingly counter-trend path: slow but steady, prioritizing institutional sustainability. This choice may be controversial, but if properly designed, it will be the foundation for differentiation.

In reality, trust only lasts if it is built on depth, not speed. Conversely, if policies become stagnant, or political will is neglected, the word "trust" can erode even before it is formed.

And if policies only focus on things like "creating nests for the eagles," serving large corporations, without mechanisms to protect small businesses or the ability to handle disputes publicly, then that trust will be distorted into privilege. Without mechanisms to guarantee common interests, the international financial market can easily become a space serving only the "big players" instead of a strategic national asset.

Trust doesn't drift aimlessly without a clear owner; it must have a clear subject: who is responsible for creating the environment for trust to flourish? And if a breakdown occurs, who will ultimately be responsible for handling and mending it?... Only when we ask these questions and have satisfactory, concrete answers can we begin a serious dialogue about a globalized financial system.

Defining a unique identity

The world is experiencing unpredictable changes; financial values ​​not only depreciate cyclically but can also be lost with every emotional shift on social media. This presents an opportunity for Vietnam. While many financial markets choose advantages such as tax breaks, technology, or geographical location, Vietnam can choose a different type of asset: trust – the only asset capable of retaining its value.

The reality at historically successful international financial centers shows that trust is not a standalone concept, but rather a "foundation" of institutions woven together by legal frameworks, cultural norms, and political commitments. To achieve this trust, a systemic shift is needed, moving from a design mindset to a foundation-building mindset. The following four key solutions aim to accomplish this:

Firstly, designing a modern legal framework. One of the key unknowns to address in the journey of building an international financial center is the legal model. Practical experience shows that the common law system is not just a legal framework. Properly understood, it is a layer of beliefs fully encoded to become an institution.

Common law does not rely on fixed laws, operating on the principle of precedent, with judgments publicly available and predictable. This offers three strategic benefits: the ability to predict legal risks for investors and businesses; flexibility in the face of new financial phenomena (blockchain, AI, digital assets); and the creation of a mechanism to balance judicial and executive power, thereby minimizing the feeling that administrative decisions dominate.

However, common law alone is not enough to create genuine trust! This is a prime example of the failure of the Abu Dhabi International Financial Centre – which implemented a model using common law, low taxes, even the world's first digital court, and an advanced legal structure. Yet, capital still flowed strongly to neighboring financial centers like Dubai, Riyadh, and other global cities. Because behind that modern design, if the power to adjudicate remains in the hands of a system lacking transparency and independent oversight mechanisms, common law becomes merely an institutional shell – not an enforceable substance.

Secondly, we need to develop a quantifiable index of strategic confidence capacity. Experience from the Abu Dhabi Financial Centre shows that confidence needs a measure to track its fluctuations and transparent disclosure to provide clarity for stakeholders. A composite index, such as a strategic confidence index, should be studied to assess the ability to generate and sustain confidence over time. This index could include components such as: political commitment, legal predictability, dispute resolution time, fiscal transparency, access to public data, and policy responsiveness.

Thirdly, the international co-supervision mechanism builds credibility from the outset. From the initial stages, Vietnam could invite international rating agencies (Z/Yen, Moody's, Fitch, etc.) to collaborate with the Ministry of Finance and the State Bank of Vietnam in supervising operations. This is a solution that "temporarily borrows the prestige" of the global system of collaborating agencies. In fact, Singapore invited the UK and Australia to participate as international judges during the early stages of its formation.

Fourth, build a Trust Lab – a “trust laboratory” for institutional governance. As a core component of the international financial market ecosystem, the Trust Lab is not a showcase, but a testing ground for advanced governance models: open adjudication, e-court mechanisms, real-time policy feedback, efficient dispute resolution, data transparency, and a flexible, modern legal framework (oriented towards common law in the initial phase).

Of course, when Vietnam sends the message "Trust is not just a value - it's our offer," concrete commitments and actions are needed so that this message is not just a slogan, but a defining identity – a commitment to a predictable institution, a transparent rule of law, and a verifiable justice system. Once this message is accompanied by legal commitments, consistent conduct, and timely policy responses, trust will be the "passport" for Vietnam to stand alongside leading financial centers in the region and globally.

Professor, Doctor Tran Ngoc Tho

Source: https://nhandan.vn/tu-loi-hua-den-hanh-dong-thuc-thi-post909190.html