Utilizing legal structures can foster international financial hubs' competitiveness: diplomat's viewpoint
Vietnam is taking strides towards becoming a significant player in the global financial market, with plans to establish International Financial Centres (IFC) in Ho Chi Minh City and Đà Nẵng City. This ambitious project, considered a strategic breakthrough, is expected to mobilize resources for economic development and connect Vietnam with global financial markets.
The development of these IFCs is receiving support from international partners such as the United Kingdom and France. The City of London is contributing capital, technology, fintech, green finance, and digital assets to the projects, while France, due to its historical ties and expertise in finance, is a key contributor to legal frameworks and knowledge exchange.
In Ho Chi Minh City, a vast area of nearly 800 hectares has been earmarked for the IFC, with operations expected to begin later this year. In Đà Nẵng, a 22-storey building in Software Park 2 has been designated as the headquarters for the city's IFC.
However, the path to establishing these IFCs is not without challenges. Olivier Brochet, the French Ambassador, identified three key challenges for Vietnam to address. The first is building a robust and appealing legal framework, which requires modernizing legal documents and streamlining administrative procedures to attract investors. The second challenge is establishing an effective governance and dispute resolution mechanism that recognizes the roles and interests of all stakeholders. The third challenge is talent development, as major IFCs worldwide are distinguished by their pool of experts.
To address these challenges, Vietnam is shifting from a management mindset to an enabling approach. Instead of focusing solely on legal framework creation, Vietnam is moving towards controlled piloting to create a distinctive institutional space that attracts global capital and technological expertise.
Vietnam is also seeking France's partnership in the design, operation, and governance of these centres. The country calls for support in connecting major investors and attracting capital and financial services from France and Europe to Vietnam. IFC in Vietnam must operate under market principles and global competition while ensuring national governance and financial security.
Transparent, fair, and efficient governance is necessary to send positive signals, create trust, and encourage capital inflows, according to Ambassador Brochet. He emphasized that Vietnam has a unique opportunity to transform Ho Chi Minh City and Đà Nẵng City into attractive, competitive, and secure financial hubs.
With its economic momentum, geographic advantages, and ongoing reform efforts, Vietnam is emerging as a promising candidate to become one of Southeast Asia's leading financial centres. The establishment of IFCs is a significant step in this direction, marking a new pathway for Vietnam's economic development and integration with the global financial market.
Read also:
- Strategizing the Integration of Digital Menus as a Core Element in Business Operations
- Financial Actions of BlockDAG Following Inter and Borussia Agreements: Anticipating Future Steps
- International powers, including France, Germany, and the UK, advocate for the reinstatement of sanctions against Iran.
- Companies urged to combat employee resignation crisis, as per findings from the Addeco Group
