Vietnam will have a regional financial center, a crypto asset exchange

The project has just been submitted by the Ministry of Planning and Investment to the Government, setting the goal that by 2035, Vietnam will establish and develop a regional-scale financial center; by 2045, an international-scale financial center will be established. The Head of the Steering Committee for the Financial Center is the Prime Minister. In the Draft Submission of the Project on Building a Regional and International Financial Center recently sent to the Prime Minister, the Ministry of Planning and Investment (MPI) proposed to build and develop a comprehensive international-scale financial center in Ho Chi Minh City (Ho Chi Minh City wants to locate the financial center in District 1 and Thu Thiem New Urban Area). Meanwhile, the regional-scale financial center in Da Nang will go ahead in developing key international financial services, associated with the Da Nang Free Trade Zone and a controlled testing mechanism (sandbox) in the field of fintech (financial technology) associated with innovation. Building regional financial centers, aiming at international financial centers, poses many challenges for Vietnam, but if successful, according to the Ministry of Planning and Investment, it will bring many results such as: Connecting global financial markets; attracting foreign financial institutions; taking advantage of opportunities to shift international investment capital flows; promoting the effective development of Vietnam's financial market, etc.

The Ministry of Planning and Investment recommends immediately applying the sandbox mechanism to business models applying technology in the financial sector. Photo: Minh Ngoc.

The report of the Ministry of Planning and Investment stated that the organizational structure of the financial center includes many agencies. In which, the Steering Committee of the financial center plays the highest coordinating and management role, deciding on development and investment strategies... The head of the Steering Committee of the financial center is the Prime Minister. The agency supervising the financial center includes representatives of the State Bank, the Ministry of Finance, the Ministry of Public Security , the National Financial Supervision Committee, the People's Committees of the provinces and cities where the financial center is located... To ensure the settlement of disputes related to the financial center, the International Arbitration Center will be established under the financial center as a commercial arbitration center model but with some specific features to ensure trust and convenience for the subjects. Proposing special incentive mechanisms for financial centers Regarding the mechanism and policies for building financial centers, the Ministry of Planning and Investment recommends a group of policies to be applied immediately, including: Building a system and set of criteria for business registration/member registration, applying only 1 procedure for business registration and performing online registration procedures, not requiring projects, original documents, consular legalization; allowing the implementation of a sandbox mechanism with business models applying technology in the financial sector, including trading floors for crypto assets and cryptocurrencies; establishing specialized trading floors for financial centers; Having preferential policies for foreign banks to establish branches or move headquarters and representative offices to Vietnamese financial centers (such as tax and fee incentives, etc.); Exemption of entry visa for a maximum period of 30 days for foreign individuals coming to work at the invitation of an organization operating in the financial center, a maximum of 90 days for foreign investors with transaction accounts at organizations operating in the financial center; exemption of work permits/application of a shortened work permit issuance process ( fast-track ) for foreign individuals working in the financial center and application of a shortened entry visa/long-term temporary residence card issuance process for spouses/minor children of such individuals. Policies will continue to be studied and considered after 2035, including: Applying case law to regulate financial and commercial activities within the financial center and forming an independent financial court, allowing foreign judges to participate in litigation activities; establishing a legal framework and operating the national central bank's digital currency (CBDC)...

The Project on Building a Regional and International Financial Center sets the following goals: By 2035, establish and develop a regional-scale financial center; by 2045, establish an international-scale financial center. Regarding the Global Financial Centers Index (GFCI) ranking: By 2035, enter the Top 75 financial centers in the world , Top 25 in the Asia-Pacific region. By 2045, enter the Top 20 financial centers in the world and Top 10 in the Asia-Pacific region. Regarding the fintech sector ranking , by 2035, enter the Top 75 financial centers in the world, Top 25 in the Asia- Pacific region and rank 3rd in the ASEAN region; by 2045, in the Top 20 financial centers in the world, Top 10 in the Asia-Pacific region, "runner-up" in ASEAN. According to the 36th GFCI Report (September 2024), in the fintech sector, Ho Chi Minh City scored 609 points, ranked 100/116, up 4 places and 6 points compared to the previous report. Compared to financial centers in the region, Ho Chi Minh City ranked after Jakarta - Indonesia (ranked 94) but above Manila - Philippines (101) and Bangkok - Thailand (102).

Vietnamnet.vn

Source: https://vietnamnet.vn/viet-nam-se-co-trung-tam-tai-chinh-quy-mo-khu-vuc-san-giao-dich-tai-san-ma-hoa-2330835.html