HCM City, Đà Nẵng rev up for international financial centres

Deputy Prime Minister Nguyễn Hoà Bình with financial experts at a conference on developing international financial centres in Việt Nam. VNS Photo Công Thành

ĐÀ NẴNG — Establishing international financial centres (IFCs) in Đà Nẵng and Ho Chi Minh City is a strategic move aimed at driving Việt Nam's fast and sustainable economic growth. These two major urban hubs are uniquely positioned to make this vision a reality, Deputy Prime Minister Nguyễn Hoà Bình stated.

Speaking at the Conference on Developing International Financial Centres in Việt Nam, the Deputy PM emphasised the pivotal role these centres will play in accelerating the country's economic development.

A Memorandum of Understanding was signed between Đà Nẵng City and Việt nam Blockchain Association at a conference on building international financial centres in Đà Nẵng. Photo courtesy of Hải Yến

“Việt Nam currently has favourable conditions to set up IFCs in these two dynamic cities in terms of a stable political environment, a safe and secure society, a hardworking labour force and friendly people. Meanwhile, the country has set its sights on the ambitious goal of building two IFCs for the new era,” Bình said.

He expressed his deep appreciation for the contributions and insights shared by international financial experts and institutions in supporting Việt Nam’s efforts to develop its first-ever IFCs.

“I sincerely express my thanks to the financial experts who have shared their knowledge and experience. Your recommendations will help Việt Nam move forward confidently in launching these two IFCs,” he added.

Chairman of HCM City’s People’s Committee Phan Văn Mãi highlighted the city’s readiness to become an international financial centre.

“HCM City, a major economic hub, earned an estimated gross regional domestic product (GRDP) of approximately US$73.8 billion in 2024, accounting for 15.5 per cent of the national GDP,” Mãi said.

Participants discuss supporting Việt Nam in building financial centres in Đà Nẵng and HCM City. VNS Photo Công Thành

He added that the city's financial ecosystem boasts over 50 per cent of Việt Nam's fintech start-ups.

Vice chairman of Đà Nẵng City’s People’s Committee Hồ Kỳ Minh said the central city has also been implementing a pilot Free Trade Zone project linked with the nearby seaport and airport as well as a logistics centre.  

“The city also set itself up as a national innovation hub with unique mechanisms and policies tied to emerging modern technologies, such as semiconductors and AI, blockchains and cloud computing.

“The city has allocated a 6.2ha land area for an IFC, a 9.7ha site to develop 33 fintech services close to the newly launched Software Park No. 2, and an additional land fund of 62ha for the IFC's infrastructure development to attract investors.”

Babak Dastmaltschi, former executive chairman of Credit Suisse, said that Việt Nam has a critical role to play in setting up future IFCs.

He stated that confidence in Việt Nam's geopolitical stability, infrastructure and strategic location is paramount, as highlighted by various opinions shared at the conference.

The banker emphasised that confidence is the most critical factor in encouraging people to invest in the country. He noted that this confidence stems from ensuring political stability and implementing laws that are internationally recognised and straightforward to follow.

Dastmaltschi further remarked that Việt Nam should actively seek consultancy and learn from the mistakes made by other IFCs around the world.

He also suggested that currency regulations should be flexible, allowing investors to bring money into the country and repatriate it when needed.

Ali Ijaz Ahmad, Chief Executive Officer of Singapore-based Makara Capital, shared his views on the Vietnamese Government’s proposal to establish two IFCs.

Đà Nẵng is an ideal destination for an international financial centre linked with the transport system, international entertainment and high-end tourism services. Photo courtesy of Lê Lâm

“We have a vision of making Đà Nẵng into a ‘Silicon Valley’ in Asia, focused on innovation. Building an IFC in Đà Nẵng is not only about the structure itself, but creating a place that capital and ideas meet and get to work," he said.

He added that an IFC requires a legal framework to protect investors and intellectual property, as well as high-speed internet services and good schools nearby.

Dr Andreas Baumgartner, co-founder and CEO at the Metis Institute, suggested Đà Nẵng should be a fintech centre with a solid IT infrastructure.

“Successful IFCs need a strong, predictable and trustworthy governance and regulatory environment. They require confidence that the framework under which they operate is predictable, transparent, stable, reliable and aligned with global standards,” Baumgartner noted.

Andy Khoo from Terne Holdings also spoke at the conference, giving a keynote address on developing regional and international financial centres in Việt Nam.

“We stand at a pivotal moment in Việt Nam’s economic journey. This conference is not merely about possibilities; it is about bold decisions that transform aspirations into reality. Đà Nẵng has the unique potential to become the beating heart of Việt Nam’s financial future,” he said.

Phan Đức Trung, Chairman of the Việt Nam Blockchain Association, suggested building Đà Nẵng into a financial centre with a technological focus.

He said Việt Nam is late to establish IFCs, but they could still be successful, as the centres are built out of local business demand.

Trung said Việt Nam's IFC would not be a copy of those in other countries, but must be built for local enterprises and rapidly developing economic communities first.

A series of Memorandums of Understanding (MoUs) were signed on educational cooperation and developing Đà Nẵng's IFC between partners including Makara Capital, Newtechco Group, Deutsche Bank Vietnam, United Oversea Bank, JP Morgan Chase, Terne Holdings, TMC Academy Singapore, Yuan Ze University in Taiwan, the Institute of Chartered Accountants in England and Wales and the Việt Nam Blockchain Association.