There is much interest from abroad when it comes to developing a major financial centre in Vietnam, Photo: Le Toan

In a significant move to bolster the planning for international financial centres (IFCs) in Vietnam, Prime Minister Pham Minh Chinh, during a meeting with the United Arab Emirates’ Minister of State for Foreign Trade, Thani bin Ahmed Al Zeyoudi, on August 26, urged the UAE to support the establishment and growth of an IFC in Ho Chi Minh City.

The visit was accompanied by leaders of 19 major UAE corporations, which the prime minister sees as an opportunity for both sides to explore further cooperation.

The actions from the government have raised hopes among investors who have long been interested in developing financial centres in Vietnam. While some have made thorough preparations in terms of capital and workforce, now they await policies that could greenlight such initiatives.

In July, the Ministry of Planning and Investment (MPI), tasked with coordinating the national steering committee for the construction of regional and IFCs, organised two working sessions with international organisations and representatives from various ministries, sectors, and localities to discuss a project on developing regional centres and IFCs.

The MPI is expected to consolidate feedback and report to the head of the steering committee to finalise the draft project, which will then be submitted to the Politburo for consideration and approval. The ministry will also lead efforts to develop a draft resolution outlining a specific mechanism for building and developing the IFC.

Jonathan Hanh Nguyen, chairman of Imex Pan Pacific Group, said he has been in contact with financial organisations in the United Kingdom, the United States, China, and Singapore, and since 2016 has been proposing a mechanism based on advice from a London-based financial company. “Although we have received feedback from authorities to make further adjustments, there has been no significant progress so far. We hope that following these recent meetings, the state management authorities will be proactive in finalising the draft project and submitting it to the Politburo for consideration and approval soon,” Nguyen added.

He added that two years ago, a number of US investors had committed to investing around $10 billion in Vietnam – $4 billion in the central city of Danang and $6 billion in Ho Chi Minh City – to build an IFC. However, those US investors have since withdrawn from the project.

“I believe investors are still waiting for a more open and innovative mechanism,” Nguyen said. “They need a clear commitment from the government and a defined strategy to ensure this is a promising plan.”

During his visit to Vietnam from July 31 to August 2, Hong Kong chief executive John Lee expressed his willingness to share Hong Kong’s experience in building a global financial centre with Ho Chi Minh City. Many developed economies, international organisations, and banks are also willing to support Vietnam. In a meeting with Lee and Hong Kong businesses, Chairman of Ho Chi Minh City People’s Committee Phan Van Mai reiterated the city’s ambition to become a regional financial hub, drawing on Hong Kong’s experience.

“We hope to strengthen cooperation. Hong Kong businesses can share practical solutions and experiences to help us develop an effective regional and global financial centre,” Mai said.

Earlier this year, Standard Chartered committed to leveraging its experience and best practices to support the development of an IFC in Ho Chi Minh City. Furthermore, in 2023, the UK government appointed TheCityUK to support Vietnam’s goal of developing a regional financial and business centre in Ho Chi Minh City, according to the British Embassy to Vietnam.

Nguyen Bich Lam, former general director of the General Statistics Office, highlighted the need for structural breakthroughs, particularly the establishment of an IFC, to unlock resources for economic development.

“This will help Vietnam’s financial market develop healthily and efficiently, engage foreign financial resources, and seize opportunities to bring international capital into Vietnam, thereby upgrading the domestic stock market,” Lam said.

The IFC will be developed in three phases. From 2025 to 2030, Vietnam will prepare the foundational conditions for the centre’s formation. Policymakers will integrate financial centre development into government strategies, planning, programmes, and action plans, including those of the localities where the centre is to be established.

From 2031 to 2035, pilot policies for the financial centre’s establishment will be implemented, alongside infrastructure development. Following that, Vietnam aims to fully develop the IFC into a regional financial hub, with the potential for expanding its scope also under consideration.