Building a breakthrough legal corridor for the International Financial Center

Vietnam plans to establish an international financial center operating in two cities, Ho Chi Minh City and Da Nang. Accordingly, the Vietnamese government is committed to building a breakthrough legal corridor; at the same time, complying with international laws and standards for the financial center.

Delegate Tran Hoang Ngan ( Ho Chi Minh City Delegation) gives an interview to VNA reporter. Photo: Hai Ngoc/VNA

On the sidelines of the 9th Session of the 15th National Assembly , on May 29, VNA reporters had an interview with delegate Tran Hoang Ngan (Ho Chi Minh City delegation) to better understand the opportunities, difficulties, challenges and necessary preparations when establishing an international financial center.

Sir, what do you think about the policy of establishing an international financial center in Ho Chi Minh City and Da Nang ?

The drafting committee has seriously taken in the opinions of experts and is approaching many international financial centers in the world. With the conclusion of the Politburo and information from the Government, Vietnam will have international financial centers located in Ho Chi Minh City and Da Nang. Currently, Ho Chi Minh City has been ranked by international organizations as one of the global financial centers and is ranked 98/121 financial centers in the world.

However, to develop into an international financial center requires five important pillars. The first pillar is the institution and business environment. This pillar must create confidence among investors with integrated, transparent institutions and open, preferential business conditions to be able to compete and attract investors.

With this pillar, the National Assembly and the Government are currently institutionalizing the Party's policies and guidelines, especially Resolution No. 66-NQ/TW dated April 30, 2025 of the Politburo on innovation in law-making and enforcement to meet the requirements of national development in the new era. Along with that, the institutional pillar must be ready to apply international laws to resolve disputes in international financial centers.

The second pillar of infrastructure includes the entire socio-economic infrastructure, transport infrastructure, energy infrastructure and especially the infrastructure to serve the activities of the International Financial Center, requiring high speed, accuracy and convenience. With this pillar, we are implementing investment and especially public investment for this infrastructure is being focused on.

The third pillar is human resources. Accordingly, Ho Chi Minh City has a very early developed commercial banking system, from 1987 until now. Next is the Ho Chi Minh City Stock Exchange, which was established in 2000 with 25 years of experience. Along with that, universities are focusing on training many students in this field. Thus, Vietnam has an abundant human resource in the financial sector and this is an advantage for the establishment of an international financial center.

Next is the pillar related to the banking and financial system, the system of financial institutions. Ho Chi Minh City currently has about 35 commercial banks with domestic branches and 9 foreign banks with nearly 320 branches. In addition, the city also has 7 state-owned commercial banks, 30 securities companies, 30 investment funds and nearly 30 insurance organizations. More importantly, the city has about 10 million accounts of securities investors. Thus, the ecosystem and system of financial institutions in the city are available and ready to participate in the International Financial Center.

The fifth pillar is about branding and accordingly, the Vietnamese national brand is currently having a position and prestige in the international market. The brand of Ho Chi Minh City and especially the 50th anniversary of the liberation of the South and the reunification of the country also creates prestige for the city. Although there has not been a decision to establish the Ho Chi Minh City International Financial Center, the Ho Chi Minh City Financial Center has been ranked in the system of global financial centers.

I believe that these five pillars will create momentum for the development of the International Financial Center in the coming time.

Sir, to stand shoulder to shoulder with international financial centers in the world, what does Ho Chi Minh City need to prepare and invest in?

To stand shoulder to shoulder with international financial centers in the world, Ho Chi Minh City must be different. Currently, the city is investing heavily in science, technology and innovation. Accordingly, the city has more than 2,200 innovative startups. Recently, the city was ranked 110/1,400 cities in the world in terms of the number of innovative startups. This will help international financial centers have a platform for innovative startups to raise capital in the market. Accordingly, the city will have the conditions to attract venture capital funds in the world.

The most important goal when the Politburo and the Government are interested in the International Financial Center is to mobilize capital to support the economic development of the country. Thus, the Financial Center will be a bridge, a place where urban bonds and government bonds can be issued to mobilize capital worldwide. This creates a source of resources to invest in the high-speed railway system, the urban railway system in Ho Chi Minh City as well as in Hanoi...

In addition to establishing an international financial center operating in Ho Chi Minh City and Da Nang, many opinions suggest that it is necessary to establish an international financial center in other localities. Do you think it is necessary?

The establishment of the International Financial Center in Ho Chi Minh City does not mean that it only serves the city, but that this is an international financial center serving the whole country and attracting the attention of the whole world. Therefore, other localities in the country can also participate in the international financial center in Ho Chi Minh City and Da Nang to be able to call for investment capital for their localities through the international financial center in Ho Chi Minh City and Da Nang. All of these issues are currently among the contents that will be specified in detail by the Government when the National Assembly issues this resolution.

According to you, what are the biggest difficulties and challenges in establishing the Ho Chi Minh City and Da Nang International Financial Centers at present?

One of the biggest difficulties and challenges for the Ho Chi Minh City and Da Nang International Financial Centers is that the Vietnamese currency is not yet a strong, highly convertible currency. Vietnam has not yet liberalized its capital account, so this will take time and must have specific conditions.
 
Accordingly, banks need to have clear policies and regulations on foreign exchange management so that market participants as well as outside members can grasp and understand.

Finally, the most important thing that attracts the attention of international investors is the issue of arbitration, dispute resolution... These issues Vietnam will follow the direction of applying international law or common law, which is a legal system based on precedents, that is, court decisions in specific cases. The Vietnamese State will ensure the rights of investors and then, investors will trust in a clear and transparent institutional system. Thus, Vietnam will certainly attract international investors to participate in this Center.

Thank you very much, delegates!

Thuy Hien/VNA (Implementation)

Source: https://baotintuc.vn/thoi-su/xay-dung-hanh-lang-phap-ly-dot-pha-cho-trung-tam-tai-chinh-quoc-te-20250529115103347.htm