Vietnam is aiming to establish an international financial center operating in both Ho Chi Minh City and Danang, said Deputy Prime Minister Nguyen Hoa Binh at a conference on May 20 regarding the drafting of a National Assembly resolution on the matter.

Deputy Prime Minister Nguyen Hoa Binh chairs a conference to discuss the development of a resolution for establishing an international financial center with locations in Danang and Ho Chi Minh City. Photo: VGP

Binh said that the Vietnamese Government is committed to developing a groundbreaking legal framework that will leverage the country’s strengths, comply with international laws and standards, and encourage innovation.

"The government aims to ensure that the financial center operates with distinct, superior, and attractive policies, while also balancing the interests of the state, investors, and citizens," said Binh.

According to Binh, government agencies are finalizing the draft resolution on the financial center and will submit it to the National Assembly for approval soon. The financial center is expected to benefit from open and exceptional policies, including tax incentives, infrastructure support, and favorable immigration, residency, and labor regulations for investors.

The deputy prime minister added that Vietnam's deeply integrated economy, business-friendly environment, investor-friendly policies, and large labor force are the main factors supporting the development of such a center.

“Seizing this ‘golden’ opportunity to develop an international financial center will give Vietnam’s economy a powerful boost and support long-term growth,” he said.

Binh also revealed that, before the Politburo decided on the financial center project, its plans and draft materials were reviewed by experts in London, Luxembourg, and Frankfurt.

According to him, experts from these and other countries praised the decision as timely and strategic, viewing it as a major step for Vietnam to deepen global economic integration and accelerate development.

Richard McClellan, Global Ambassador of Terne Holding and former Director at the Tony Blair Institute, said that Vietnam should not view a financial center as a single geographic location but rather as a unified national system.

He proposed developing two sites for the international financial center: one in Ho Chi Minh City and one in Danang.

According to him, that would allow each city to complement and support the other while maximizing its unique strengths.

Richard cited the United Arab Emirates and China as examples of countries where financial centers operate under a similar dual-location model designed to minimize risk, distribute economic opportunities more evenly, and encourage innovation.

As for Danang, he described the central coastal city as having the “DNA” of a future financial hub, citing its strategic location, infrastructure, human resources, and planning as reasons why.

He recommended positioning Danang as a pilot zone for policy and institutional innovation, green finance, ESG capital, trade and commodity finance, venture capital, and startup funding.

An image of the central coast city of Danang. Photo: kinhtedothi.vn

Local authorities ready for action

At the conference, Nguyen Van Quang, Secretary of the Danang Party Committee, acknowledged the challenge of establishing an international financial center that conforms to global standards while adhering to Vietnam’s legal framework.

He added that developing such centers in Ho Chi Minh City and Danang would diversify Vietnam’s investment landscape and help manage financial risks more effectively.

“Danang has already prepared the necessary conditions and ecosystems, including hard and soft infrastructure, to support the center’s future operations,” said Quang.

Nguyen Van Dung, Deputy Chairman of the Ho Chi Minh City People’s Committee, said the city is actively devising new policies tailored to its local conditions.

"Authorities are preparing technical infrastructure and workforce training programs in anticipation of the center’s launch," said Dung.

In Conclusion No.47-TB/TW dated November 15, 2024, the Politburo called for strong political commitment and decisive action in implementing the project to establish regional and international financial centers in Vietnam.

Consequently, the government issued Resolution No. 259/NQ-CP on December 31, 2024, outlining its action plan. Since then, government officials have consulted with domestic and international experts and institutions to develop the necessary policies.

The draft resolution on the international financial center is expected to be submitted for adoption during the ninth session of the ongoing National Assembly.

A corner of Ho Chi Minh City. Photo: kinhtedothi.vn