Step by step to establish an international financial center

Vietnam is planning to establish two international financial centers in Ho Chi Minh City and Da Nang, where money from around the world will flow in to buy, sell and invest.

Vietnam is planning to establish two International Financial Centers in Ho Chi Minh City and Da Nang . In photo: Ho Chi Minh City center - Photo: QUANG DINH

This model, roughly speaking as an international financial "market", will not only be a geographical area with incentives but also be linked to the development needs of the economy , promoting innovation in the financial services sector, meeting the needs of the business community, investors, and startups.

But to turn this plan into reality soon, Vietnam must take each step with certainty.

The first step is for Vietnam to clean up and make the "market" more beautiful. That means reviewing financial regulations and eliminating complicated regulations. When international visitors come, they will feel secure bringing money in only when they see clarity and transparency.

The next step is to open the "market" and invite customers in. Currently, international money transfers in and out of Vietnam still go through cumbersome procedures.

To attract more foreign capital, some regulations need to be loosened to make it easier for money to flow in and out. Singapore has done a great job of this by creating its own financial sector; for example, in Marina Bay, currencies are easily convertible, which investors really like.

Once open, the "market" must have a variety of goods to retain customers. Currently, the Vietnamese market mainly has stocks and bonds, with very few other financial products.

To become an international financial center, Vietnam must have more corporate bonds, green investments in clean energy, international investment funds, and carbon trading - something the world is very interested in.

Just like a market that only sells pork will have few customers because some people don't like pork. It must have clean vegetables, imported fruits, fresh seafood... for customers to come in large numbers and stay longer.

Another important factor is fair "rules of the game" and quick arbitration. Investors fear most of all lengthy litigation and complicated procedures. London has financial arbitration, resolving disputes as quickly as going to the doctor.

In Vietnam, there needs to be a similar mechanism so that if there is a dispute between a company and an investor, it can be resolved within a few months, not dragged on for years. Like in the market, there is a fair market leader, anyone arguing will be arbitrated immediately, not dragged to the commune People's Committee, wasting time.

Next, Vietnam must upgrade its domestic banking team, because banking is the most important "football team" in the financial arena.

At the same time, Vietnamese banks should be listed on international stock exchanges to both earn more capital and enhance their reputation; like a village football team going to play in an Asian tournament, both learning and promoting their name.

In addition, Vietnam also needs to invest heavily in technology, build digital infrastructure, 5G networks, and modern data centers for fast, accurate, and secure financial transactions. Singapore and Tokyo do this very well, and Vietnam must learn from them if it wants to compete.

An indispensable step is to train Vietnamese people to understand finance. If you want to have an international financial center but have weak human resources and do not know how to operate it, it will be difficult to succeed.

It is necessary to open many training classes and invite foreign experts to teach everything from fund management, investment to financial technology, so that the domestic team is strong enough and confident enough to step into the global arena...

Of course, all of this cannot be done overnight. To successfully build an international financial center, Vietnam needs many years, along with strong determination from its leaders, coordination from ministries and sectors, and support from the people.

If it goes in the right direction, Vietnam will become the new financial star of Asia, attracting money from all over, businesses expanding to the world, people having more good jobs and higher incomes. That is not only the dream of the country but also a desirable future for all of us.

NGUYEN TUAN QUYNH

Source: https://tuoitre.vn/tung-buoc-lap-trung-tam-tai-chinh-quoc-te-20250725084207771.htm