Deputy Prime Minister Nguyen Van Thang chaired the third meeting of the Executive Council of Vietnam’s International Financial Centre (VIFC) via video conference with Ho Chi Minh City and Danang, held on September 7 at the Government Office Headquarters in Hanoi.

Deputy Prime Minister Nguyen Van Thang chairs the third meeting of VIFC’s Executive Council. Photo: Government Portal

Reporting at the meeting, Deputy Minister of Finance Nguyen Thi Bich Ngoc said that the institutional and organisational framework of VIFC has been largely established.

Ngoc noted that the International Financial Centre is organised in Ho Chi Minh City and Danang, with an Executive Council at the central level, two Operating Authorities in the two cities, and a common Supervisory Authority.

The two Operating Authorities have issued procedures for member registration and recognition, which have been implemented uniformly since August 17.a

“A number of banks, securities companies, asset management organisations and investors have signed MoUs, certificates of commitment, or submitted applications,” she said.

According to the Ministry of Finance (MoF), VIFC's competitive positioning should be based on Vietnam's prevailing advantages in terms of economic scale and growth prospects, its position in production, trade and logistics chains; demand for medium- and long-term capital for infrastructure, energy and green transition, as well as vast room for development in capital markets, fund and asset management, and fintech.

“For the immediate term, the MoF proposes focusing on several key programmes, encompassing selecting a raft of energy, infrastructure, logistics and green-transition projects associated with partner banks and strategic investors; developing an ecosystem for international investment funds and asset management; and developing commodity markets linked to trade and supply chain financing,” Deputy Minister Ngoc said.

At the meeting, representatives of the Operating Authorities in Ho Chi Minh City and Danang reported on progress in completing operational conditions, attracting members and implementing specific products and projects.

The Ho Chi Minh City Operating Authority representative said the city had identified a shift from the development phase to ‘substantive operations’, focusing on four pillars: institutions, members, products and infrastructure.

“Ho Chi Minh City is also screening prospective members, with a focus not on expanding indiscriminately but on selecting organisations associated with specific products and actual projects in the economy.

Regarding products, the city is working with investors to mobilise capital for infrastructure projects, while preparing the groundwork for the issuance of international bonds and municipal bonds,” said the representative.

Meanwhile, the Danang Operating Authority representative said it was focusing on implementing a number of specific projects through VIFC.

The two Operating Authorities are also coordinating to finalise procedures, criteria for member selection and the necessary legal framework, based on the principle that VIFC is a unified entity while leveraging the strengths of each locality.

Concluding the meeting, Deputy Prime Minister Nguyen Van Thang stressed that building and putting VIFC into operation is an important task that must be carried out urgently, in a coordinated and substantive manner, ensuring a full legal foundation as well as management and supervisory mechanisms so that financial products and services can be rolled out safely and effectively at an early stage.

"The Operating Authorities in Ho Chi Minh City and Danang are now officially operational. Therefore, we should not wait until all conditions have been completed before taking action. Instead, institutional development must proceed in parallel with the selection of a number of products for which there is already supply and demand so that we can work and negotiate with investors," the DPM said.

DPM Thang also asked the two Operating Authorities to proactively work with investment funds and businesses. For products that are ready and meet all necessary conditions, proposals should be made for their immediate implementation.

Regarding the development of financial products, the DPM requested that the necessary policies for each product be clearly identified, along with the drafting agency, the authority competent to issue them and the implementation deadline, so that progress can be monitored.

At the same time, a feasible and effective inspection, examination and supervision mechanism should be developed without creating many additional administrative procedures.

Regarding IT infrastructure, the DPM tasked the Ho Chi Minh City Operating Authority with studying the hiring of consultants to develop the architectural design of VIFC’s IT platform.