Vietnam has sufficient conditions to develop modern financial market: Prime Minister

Vietnam possesses all the conditions to develop a modern financial market, including the establishment of international and regional financial centers, Prime Minister Pham Minh Chinh said on Saturday.

The PM mentioned five such conditions at a conference in Ho Chi Minh City, where the government’s action plan for implementing the Politburo’s conclusion on developing international and regional financial centers in Vietnam was announced.

First, Vietnam’s total GDP in 2024 is projected to reach around $470 billion, ranking the country 33rd-34th globally. The average GDP per capita is approximately $4,600-4,700. With steady economic growth, macroeconomic stability, controlled inflation, and well-maintained balance in key sectors, Vietnam aims for a GDP growth rate of at least 8% in 2025, with a goal of achieving double-digit growth in the years ahead.

Second, the Prime Minister noted that strategic breakthroughs are yielding promising results, particularly in fostering transparent institutions, modern infrastructure, and smart governance.

Third, Vietnam’s stock market capitalization has reached nearly VND7,200 trillion ($283.2 billion), an increase of 21.2% from the end of 2023, equivalent to 70.4% of the 2023 GDP. The market growth has reached double digits, the highest in the region.

Fourth, Vietnam has a highly integrated economy with significant openness, reflected by the 17 free trade agreements (FTAs) with over 65 of the world’s leading economies. The country’s trade turnover is approximately $800 billion, roughly 1.7 times its GDP.

Fifth, the PM emphasized that the country enjoys political stability, ensured social order and safety, along with peaceful living conditions and an environment of peace, cooperation and development.

Vietnam also holds a strategic location with significant geopolitical importance. It is situated in a dynamic, innovative region, and in a time zone that differs from 21 of the world’s largest financial centers, he added.

"Building international and regional financial centers in Vietnam is an inevitable and essential step for our country's development in this new era - an era of rising to achieve prosperity, civilization, and a rich, happy life for the people," he emphasized.

The Prime Minister noted that the establishment of financial centers in Danang and HCMC should focus on training high-quality human resources, developing modern infrastructure, and improving technology and governance.

The PM asked the two cities to urgently propose policies tailored to their specific contexts. He ordered ministries and central agencies to work closely with HCMC and Danang to accelerate the drafting of the National Assembly’s resolution on the financial centers.

Chinh called for further collaboration from domestic and international partners in providing policy advice and connecting big investors to participate in Vietnam’s financial centers.

Earlier, the Politburo had agreed to establish a comprehensive international financial center in HCMC and a regional financial center in Danang. According to the Politburo’s conclusion, these financial centers will operate under unique management mechanisms that are superior to current systems.

At the conference, Minister of Planning and Investment Nguyen Chi Dung stated that the government’s action plan has assigned 49 groups of specific tasks and solutions to 12 ministries, sectors, and localities. These tasks are aimed at establishing a solid legal framework and preparing the necessary conditions for developing the financial centers.