HCMC's international financial center development to be phased out: city leader

Ho Chi Minh City aims to become an international financial center, with related development plan divided into three phases, said Vo Van Hoan, its Vice Chairman.

The first phase will focus on establishing solid foundations for a national financial center (2025-2030), followed by the development of a regional financial center (2031-2035), and ultimately advancing towards an international financial center after 2035.

Hoan made the remark during a discussion on the issue with South Korean businesses on Tuesday.

To achieve this goal, he emphasized that HCMC must first develop its infrastructure and service sector. It must also improve the business environment, enhance the quality of life for residents, promote a culture of English usage, and focus on developing a modern financial platform, a digital economic platform, and digital finance solutions.

Michael Chin, an independent board member of Vingroup and Pepper Savings Bank, shared insights from South Korea’s financial centers, which have achieved significant success through infrastructure development, regulatory reforms, technological innovation, and creation of global financial infrastructure.

A key element of South Korea's success has been its green financial system, which supports sustainable economic development and environmental protection.

This includes initiatives such as carbon emission reduction through green bonds and sustainable bonds, managing the carbon market, and operating the South Korean Emissions Trading System (K-ETS), along with long-term financial support for renewable energy projects.

Drawing from South Korea’s experience, Chin recommended that the development strategy for HCMC’s financial center focus on building a strong market, developing supply chain finance, and establishing a commercial finance hub.

This includes creating IT infrastructure, promoting digital finance, fintech, and back-office operations, and placing a strong emphasis on green finance and developing a sustainable financial ecosystem.

"Given the critical importance of green finance for future development, HCMC should prioritize resources towards building an international financial center. This should include investing in green finance infrastructure, supply chain finance, and establishment of a commercial finance hub.

"The goal is to position HCMC as a financial hub of Southeast Asia, offering a wide range of digital financial services, fintech solutions, back-office operations, IT infrastructure, and a sustainable financial ecosystem, with a focus on green finance and carbon credit initiatives," Chin said.