The center is also expected to promote the city's role as an economic hub in the Southern key economic region and the country.
The Politburo recently issued Conclusion No. 47-TB/TW, approving the policy of establishing a regional and international financial center in Vietnam, including the establishment of a comprehensive international financial center in Ho Chi Minh City and a regional financial center in Da Nang City.
The project to build the international financial center in Ho Chi Minh City is part of the programs under the four breakthrough programs of the 11th Congress Resolution of the Ho Chi Minh City Party Committee, which has been nurtured for passing years.
Various experts and scientists valued the establishment of the international financial center in Ho Chi Minh City as a core strategic direction, bringing long-term benefits to the municipal and the Southern key economic region, helping to create a momentum and exploit potentials.
Associate Professor Dr. Nguyen Huu Huan from the University of Economics Ho Chi Minh City stated that as the country’s largest economic center, the actualization of the international financial center in Ho Chi Minh City is entirely appropriate.
Ho Chi Minh City's strategic geographic location in Southeast Asia is the greatest strength for economic development. The city also accounts for a large proportion of the country's GDP approximately 23 percent, and is a hub for many key economic sectors such as finance, technology and services, creating a dynamic business ecosystem for domestic and international companies to cooperate, develop and innovate.
As for the potential created by the international financial center, Dr. Tran Quang Thang, Director of the Institute of Economics and Management Ho Chi Minh City, emphasized that this would become a driving force to promote economic growth in Ho Chi Minh City and the southern key economic region as this center would gather businesses, investors and major financial institutions, thereby facilitating capital mobilization and the development of large economic projects, the application and development of financial technology (FinTech), artificial intelligence (AI) and other new technologies, as well as promoting innovation and creativity.
However, the building process of the international financial center in Ho Chi Minh City is likely to face challenges related to the legal and management system amid constant changes in the law, posing difficulties for investors.
Additionally, the development of financial infrastructure, high-quality human resources, a competitive business environment, and security and order situations will also be challenges that need to be overcome.
He believed that if these challenges are addressed, the establishment of the international financial center in Ho Chi Minh City will bring long-term benefits to the city and the region.
Need for superior policies
In order to overcome challenges and take these advantages, Associate Professor Dr. Nguyen Huu Huan stated that Ho Chi Minh City needs to first focus on upgrading infrastructure, including transportation, modern financial areas and information technology systems; and essentially reforming and perfecting the legal framework.
The city should also enhance its capacity for security and risk management to ensure cybersecurity and the safety of financial transactions.
If these solutions are implemented comprehensively, Ho Chi Minh City will not only overcome challenges but also become a leading international financial center, making significant contributions to the economic development of Vietnam and Southeast Asia.
As the agency assigned by the Ho Chi Minh City People's Committee to coordinate the construction of the international financial center in Ho Chi Minh City, Ho Chi Minh City State Financial Investment Company (HIFC) has proposed five key tasks to be implemented in the near future.
These tasks aim to gradually meet international standards and practices, actualize the goal of effectively developing Vietnam's financial market and contribute to promoting the country's economic development.
In recent working sessions, Chairman of the Ho Chi Minh City People's Committee Phan Van Mai strongly affirmed that the city has been focusing resources to prepare conditions for transportation infrastructure, telecommunications connectivity and other infrastructures serving the international financial center.
Specifically, the management model for the international financial center will be developed based on the existing financial areas in District 1 and the formation of a financial area in the new Thu Thiem urban area.
Investors and experts are concerned with the need for superior policies and mechanisms to build the financial center.
Chairman of the Ho Chi Minh City People's Committee Phan Van Mai stated that the city is collaborating with Da Nang City, the Ministry of Planning and Investment and other ministries and agencies to prepare and propose outstanding special policies and mechanisms for the implementation. At the same time, the city is preparing to promote and invite investors to build the international financial center.
The international financial center in Ho Chi Minh City is believed to become the heart and new symbol of the city in the near future.
