VIETNAM SETS SIGHTS ON HO CHI MINH CITY'S TRANSFORMATION INTO A GLOBAL FINANCIAL HUB BY 2030

Vietnam established a steering committee, led by Deputy Prime Minister Le Minh Khai, on October 6 to guide the development of a new international financial hub, underscoring its ambition to elevate its global financial stature.

Vietnam has recently laid the foundations for the conception of a regional and international financial hub, demonstrating its keen intent to upscale its presence in the global financial landscape.

The initiation was marked by the establishment of a steering committee to oversee this monumental endeavour, with Deputy Prime Minister Le Minh Khai spearheading the group.

Formed following a decision on October 6 by Prime Minister Pham Minh Chinh, the committee's primary role will be to advise the government and assist the prime minister with research, coordination efforts, and the resolution of tasks associated with building the envisioned financial centre.

Lending weight to the committee’s prominence is a roster of esteemed officials. Beyond the leadership of DPM Khai, the committee includes Minister of Planning and Investment Nguyen Chi Dung and is bolstered by the involvement of top-tier executives from several ministries, including Finance, Trade and Industry, Defence, Public Security, Information and Communication, Natural Resources and Environment, the State Bank, the Government Office, and also representation from the administrative agencies of Ho Chi Minh City and Danang.

Ho Chi Minh City and Danang have previously delved into foundational research into the inception of such a financial epicentre. As revealed by the Ministry of Planning and Investment in May, there have been joint explorations with these cities on the matter.

However, the proposition of sculpting an international financial hub in Ho Chi Minh City is perceived as a formidable and intricate undertaking.

The blueprint for this endeavour seeks to leverage the myriad of potential and advantages inherent in both Vietnam as a nation and the cities of Ho Chi Minh City and Danang.

Preliminary drafts from Ho Chi Minh City in 2022 shed light on the three-pronged structure for the international financial hub. This encompasses a monetary market coupled with a banking system, a capital market, and another dedicated to derivative commodities.

To realise this grand vision, Ho Chi Minh City has delineated a quartet of specific action programmes. These include the proliferation of Fintech, digital banking, and digital financial transactions, the regional integration of the hub, the promotion of the Thu Thiem Financial and Trade Zone, and the growth of the commodities market.

Furthermore, the prospective financial centre in Ho Chi Minh City has been envisaged to host entertainment quarters and casinos, albeit not as core components but as strategic add-ons to enhance its appeal to global investors.

The city’s blueprint sets forth a phased deployment plan, aiming for the establishment of this international financial hub by 2030.

Source: VIR