Prime Minister invites Bank of China to join Vietnam's international financial center

Prime Minister Pham Minh Chinh has asked Bank of China (BOC) to join Vietnam's international financial center that will take shape in the future.

Chinh is attending the 16th annual Pioneers Meeting of the World Economic Forum held in Tianjin (WEF 16 Tianjin) and working in China from June 24-27. The trip took place at the invitation of Chinese Premier Li Qiang and WEF chairman and CEO Borge Brende.

At a meeting with BOC's chairman Ge Haijiao on Tuesday, Chinh said he highly appreciates the contributions of BOC to Vietnam's socio-economic development over the past 30 years.

He said he hopes that BOC would continue to expand its activities and participate in restructuring weak banks in Vietnam.

Vietnam is perfecting the legal framework for the establishment of an international financial center in a breakthrough direction, ensuring transparency and safety. The policy on this center will be very open, the Prime Minister said.

He suggested BOC share experiences with Vietnam and connect investors and experts in the financial sector in building, developing and operating such an international financial center.

The draft resolution on developing an international financial center is being submitted to the National Assembly - Vietnam's legislature - and is expected to be approved on June 27.

Accordingly, Vietnam will develop an international financial center located in Ho Chi Minh City and Da Nang.

In particular, HCMC is oriented to develop comprehensive products and services such as a banking market, a capital market associated with asset management and fund management services, and fintech sandboxes.

Meanwhile, Danang will develop green finance; conduct controlled testing of digital assets and digital currencies; and attract investment funds, remittance funds, and small and medium-sized fund management companies.

In response, BOC chairman Ge Haijiao said the bank wants to increase its presence and investment in the Vietnamese market.

BOC is also ready to provide comprehensive financial services for large-scale infrastructure projects; promote monetary and financial cooperation and cross-border payment; and contribute to building an international financial center in Vietnam, he told the Vietnamese cabinet leader.

BOC has a service network in mainland China and 64 other countries and territories. By the end of 2023, the bank had had 12,000 branches and more than 300,000 employees.

BOC opened a branch in HCMC in 1995. This is the first branch of a Chinese bank to be licensed in the country. It specializes in providing comprehensive financial services such as credit, international payment, trade finance, and foreign exchange.

On the same day, Prime Minister Chinh received leaders of three leading Chinese railway and transport infrastructure corporations, including China Railway Corporation (CREC), China Railway Construction (CRCC), and China Communications Construction Company (CCCC).

Leaders of these corporations expressed their desire to participate in railway and infrastructure projects in Vietnam, especially the three routes connecting Vietnam and China. Of these, the Lao Cai-Hanoi-Hai Phong route is expected to start construction in December.

In addition to railways, CCCC leaders said they want to participate in seaport projects (Lach Huyen, Can Gio), expressways (HCMC-Trung Luong-My Thuan, HCMC-Moc Bai), beltways, and metro lines in Hanoi and HCMC.

Prime Minister Chinh said he welcomes corporations interested in and planning to invest and expand operations in Vietnam, especially in railway infrastructure. He affirmed Vietnam's favorable policy on developing the railway industry and being self-sufficient in technology.

He suggested that both sides innovate their working methods to implement upcoming projects faster and better.

"The Vietnamese Government is committed to accompanying, supporting and creating favorable conditions for Chinese enterprises," he added.

CREC is one of the largest construction contractors in the world, ranking 39th in the Fortune Global 500 in 2023. In Vietnam, the company has won bids for many large projects in such fields as shipbuilding, railways, and wind power, with a total value of about $1 billion.

CRCC ranks 42nd in the Fortune Global 500 and is famous in the construction sector. The group has built more than 9,000 km of railways, accounting for 80% of China's total railway construction volume abroad.

CCCC is a leading enterprise in the field of investment, construction and operation of transport infrastructure such as seaports, railways, and airports. This group has been present in Vietnam for more than 30 years, with a total investment of over $3 billion.