Vietnam meets criteria for establishing international financial centers: PM Chinh

The PM chaired a conference on January 4 in Ho Chi Minh City to announce the Government’s resolution on promulgating an action plan to carry out the Politburo’s conclusion on developing regional and international financial centres in the nation.

On November 15, 2024, the Politburo issued announcement No. 47 regarding the development of regional and international financial hubs in the country, in which it had consented to establish a comprehensive international financial centre in the southern largest economic hub of Ho Chi Minh City and a regional financial centre in coastal central city of Da Nang.

From now until 2030, a total of eight key policies will be issued and implemented immediately, with these aligning with international practices and the relevant conditions of the country. Additionally, six common policy groups from major financial centres around the world will be piloted, with a roadmap for application which will suit Vietnam's actual conditions.

At the conference, Nguyen Van Nen, secretary of the HCM City Party Committee, and Nguyen Van Quang, secretary of the Da Nang City Party Committee, presented preparations to develop the financial centres; solutions to implement the action plan, and decisions which seek to establish the steering committees for these financial bases.

Leaders of various ministries and sectors made statements and proposed solutions specifically for the development of the capital market, monetary and banking sectors, dispute resolution mechanisms, and the development of digital infrastructure for the Vietnam Financial Center.

Alexandra Smith, consul general of the UK in Ho Chi Minh City, stated that the country is at an important moment as it enters an era of the nation’s rise. The building of regional and international financial centres in the country therefore represents one of the proofs needed in order to ensure this goal is achieved.

The UK has been and remains fully committed to continuing to co-operate and support the nation as it strives to successfully build the regional and international financial centres, she emphasized.

In speech, PM Chinh showed his elation at the strong involvement of ministries, sectors, and localities, as well as the support and sharing of international friends, all of which has helped to bolster confidence in the effective development of the regional and international financial centres in the country.

After nearly 40 years of pursuing the Doi Moi (Renewal) process, Vietnam has never had the fortune, potential, position, and international reputation as it enjoys today. In 2024, the Vietnamese socio-economic situation continued to witness positive recovery as each month’s achievements were higher than the previous month and each quarter was better than the previous quarter, achieving many outstanding results across multiple fields and overall being better than 2023.

According to the cabinet leader, the nation remained a bright spot in terms of growth and was part of a group of countries with high growth in the region and the world with an annual GDP growth rate of roughly 7%, thereby bringing the nation’s economic scale to about US$470 billion.

The total Vietnamese import-export turnover hit a record of US$810 billion, with a trade surplus of US$24 billion. State budget revenue reached a record of more than VND2 quadrillion, exceeding the estimated forecast by more than 19%.

FDI inflows amounted to around US$40 billion, thereby bringing the nation into the group of 15 developing countries attracting the largest amounts of foreign investment capital in the world. The country has signed a total of 17 FTAs and has set up comprehensive strategic partnerships, strategic partnerships, and comprehensive partnerships with 33 nations, including comprehensive strategic partnerships with nine countries.

Underlining the major goals, tasks, and solutions in terms of Vietnamese socio-economic development in 2025 and the time ahead, PM Chinh noted that building and developing regional and international financial centres in Ho Chi Minh City and Da Nang will create a premise and a solid foundation for the country to enter a new era, an era of the nation’s rise. This will see Vietnam strive to become a rich, strong, and prosperous nation where its people are increasingly happy and well-off.

Recently, total Vietnamese social investment hit 33% to 35% of its GDP, but in the coming time this number must reach 45% to 50% of total GDP, equivalent to up to VND5 quadrillion, he said, adding that the Vietnamese capital market is growing rapidly and its stock market continues to be an important capital transmission channel in the market, maintaining growth momentum compared to 2023.

According to the Government chief, the nation satisfies a total of five requirements to build an international financial centre. Among them, the country boasts the 33rd largest economy in the world; economic growth rate is high and stable; Vietnam is implementing three strategic breakthroughs and achieving positive results; it is leading in terms of stock market development in the region, with stock market capitalisation reaching VND7.2 quadrillion; deep international economic integration, with its openness 1.7 times greater than total GDP; political stability, social order and safety whilst maintaining a peaceful environment, co-operation, and ongoing development; and a favourable geographical location.

Building international financial centres will help the nation to connect with the global financial market; attract foreign financial institutions, create new resources, and promote existing resources; take advantage of opportunities to shift international investment capital flows for the purpose of socio-economic development; promote the development of the Vietnamese financial market effectively, according to international standards; and create fresh motivation, thereby creating a breakthrough in development, he said.

He therefore asked ministries, sectors, and localities to advise the Government to develop and submit to the National Assembly for consideration mechanisms and policies for the international financial hubs. This is along with focusing on training and attracting human resources; developing and ensuring synchronous, modern, and high-quality infrastructure; and applying advanced science and technology to management; creating consensus and unity among the entire political system and for all people and businesses in building and developing international financial centres in Vietnam, with this being done in the spirit of learning while doing and gradually expanding.

The cabinet leader requested that Ho Chi Minh City and Da Nang urgently review, research, and propose effective and feasible tasks and solutions in alignment with the policy groups set out in the project. This will ensure synchronisation, comprehensiveness, consistency in goals and requirements whilst continuing to maintain and expand co-operation with domestic and international partners in the financial sector in the process of building and developing new financial services and products. Other efforts include building outstanding mechanisms, policies, and incentives; as well as proactively allocating budget and mobilising domestic and foreign resources to invest in developing infrastructure to serve the operations of the financial centres.

PM Chinh asked the Ministry of Planning and Investment, ministries, branches, and central agencies to seriously and drastically implement assigned tasks according to the Action Plan issued by the Government. They should research, deploy, build, and perfect institutions and policies on the financial centres as assigned in the Action Plan.

He voiced his hope that domestic and international partners will continue to accompany the Government in the process of building and developing the financial centres; propose policies and consultancy based on the experience of established international financial hubs in the world, especially those with similar conditions; and assist in attracting resources and connecting large, potential investors to participate in the financial hubs in the nation.

Building the regional and international financial centres is an urgent requirement which has received great attention from the Party, State, and Government’s leaders, he said, stressing that it is the work of the entire Party, the entire political system, all people, and businesses with the co-operation and support of international friends.

With the motto of listening and understanding together; sharing visions and actions; working together, enjoying together, winning together, and developing together, the PM is confident that Vietnam will achieve success in building and developing the regional and international financial centres as a contribution to overall development and common prosperity of the region and the world.