Vietnam Deputy PM discusses financial center development with ECB

Vietnam's Standing Deputy Prime Minister Nguyen Hoa Binh on Monday met with representatives of the European Central Bank (ECB) to discuss plans for the establishment of financial centers in Vietnam, as part of his working visit to Germany – the final stop in his European tour.

At the meeting, the Deputy PM commended the ECB’s role in controlling inflation, maintaining economic stability, and promoting sustainable growth. He stressed that Vietnam views the institution as a model to learn from in its efforts to refine the financial market, enhance monetary oversight, and improve macroeconomic management.

With the country’s National Assembly expected to issue a resolution this year on the establishment of international financial centers, Binh said the Vietnamese Government hopes to obtain the ECB’s advice in shaping policies for financial regulation, investment attraction, risk management, and anti-money laundering efforts.

ECB President Christine Lagarde lauded Vietnam’s financial center development orientation. She pledged to task the bank’s legal department with assisting Vietnam to develop an appropriate regulatory framework.

Commenting on the Southeast Asian nation’s policy allowing investors to freely transfer capital via capital accounts, she noted that this reflects the country’s solid economic foundation.

Highlighting Vietnam's readiness to receive international recommendations, Deputy PM Binh proposed specific areas of cooperation, including sending Vietnamese personnel serving the financial centers to intern at the ECB for one year, with the bank determining the number of placements and selection criteria. He suggested sending experienced ECB experts to Vietnam to train banking staff and financial centre operators.

The official also extended an invitation to the ECB President to visit Vietnam to sign a memorandum of understanding (MoU) on cooperation.

Lagarde agreed with the proposals and confirmed that the ECB’s technical assistance would cover legal framework development, training, and supervision. She requested Vietnam identify priority fields.

The ECB will accept two to three Vietnamese interns and will discuss further details as preparations for the MoU progress, she said.

On the same day, Binh attended a roundtable on the building of financial centers in Vietnam. Jointly organised by the Vietnamese Ministry of Finance, the Vietnamese Embassy in Germany, and the Vietnamese Consulate General in Frankfurt, it drew the participation of leaders of several Vietnamese ministries, sectors and localities; representatives from the German Asian-Pacific Business Association and the German federal trade and investment organisation, along with leaders of 35 banks, financial funds, investment funds, associations, and companies operating in the international financial sector in Germany.

Binh told participants that Vietnam is studying various measures to promote growth, including the establishment and operation of financial centers, creating a favourable, transparent, attractive, and reputable environment for foreign investors.

It is also taking various solutions such as significantly reducing administrative procedures, especially those related to businesses; perfecting the legal system to create a transparent, clear legal framework that meets international standards; and improving infrastructure, including transportation, energy, and digital infrastructure, he stated.

He urged German experts and businesses to come to Vietnam to participate in building the financial centers, as well as to recruit high-quality personnel from Vietnam to train on how to operate such centres. The Deputy PM also called on them to join Vietnam and become the first foreign investors to establish a presence at Vietnam's international financial centre.

Vietnamese Deputy Minister of Finance Nguyen Thi Bich Ngoc affirmed that Vietnam is determined to build a financial center that meets international standards with transparency, efficiency, a solid legal foundation, high-quality human resources, advanced technology applications, and a safe, sustainable investment environment. This center aims to contribute to connecting the Association of Southeast Asian Nations (ASEAN) with the world's financial centres.

With this spirit, Vietnam hopes to receive valuable experiences from global financial corporations and businesses in general, and from those in Germany in particular, to help it succeed in establishing and operating its international financial centre, she affirmed.

At the end of the roundtable, Binh witnessed the signing of two MoUs between the Vietnam Youth Business Association in Europe (VYBE) and Germany’s Association of Small and Medium-Sized Businesses, as well as between VYBE and the Vietnam Posts and Telecommunications Institute of Technology.

Earlier, Deputy PM Binh held working sessions with the World Alliance of International Financial Centers (WAIFC) and several leading German enterprises in the financial sector, including DZ Bank, Brosnan Norden, Mountain Alliance AG, and DAS Investment.

At the sessions, he affirmed that the Vietnam-Germany relationship is developing extensively. Vietnam places great importance on its relationship with Germany and believes there is significant potential for further development, especially in economy and trade.

He appreciated the interest and commitment shown by German experts and major enterprises in promoting the establishment and development of international financial centers in Ho Chi Minh City and Da Nang city.

Building international financial centers is a crucial solution for further promoting Vietnam's economic growth, Binh noted, calling on businesses to share their experiences and provide practical advice for the establishment of the financial centers.

He also asked the business leaders to help convey Vietnam's message to German companies to explore business and investment opportunities in Vietnam and to participate in developing financial centres in the Southeast Asian nation.

Meanwhile, WAIFC and business leaders appreciated Vietnam's efforts in national development. They noted that Vietnam is experiencing remarkably fast growth, and its market holds vast potential.

Saying that the establishment of international financial centers is an important and clear-sighted move to ensure a financially strong future for Vietnam, they affirmed their readiness to share knowledge and experience, support the country in accessing necessary capital sources, and train and provide high-quality human resources so that the international financial centers' development will be sped up effectively.

They also pledged to help attract German and international businesses to this project.

Assessing the outcomes of his working visits to three European countries – England, Luxembourg, and Germany, Deputy PM Binh told Vietnam News Agency that the most significant outcome is that all partners he met hailed Vietnam’s decision to open the financial centers, which they perceived will not only enhance resources for Vietnam's economy but also position the country as a link in the global economic chain.

Besides advantages such as Vietnam's strong political determination and readiness of basic conditions, this is also a big ambition facing many challenges as Vietnam lacks experience. To overcome these difficulties, there is no other choice but to learn experiences of the countries with successful financial centers such as those in London and Frankfurt, according to the Deputy PM.