Vietnam's int’l financial center must begin operation in Nov: Prime Minister

Prime Minister Pham Minh Chinh on Saturday instructed relevant agencies to submit a draft government decree on Vietnam's International Financial Center (IFC) in the coming days so as it can begin operations within November.

The cabinet leader made the request at a conference on the establishment of such a center which will be located in both Ho Chi Minh City and Danang.

HCMC will serve as a large-scale financial hub focusing on the development of stock, bond, banking, fund management, and listing services markets. Meanwhile, the central city of Danang will concentrate on financial services related to logistics, maritime activities, free trade, and industrial-agricultural supply chains.

The proposed area of the center in HCMC will cover approximately 899 hectares, while the Danang location will span about 300 hectares.

Minister of Finance Nguyen Van Thang said Vietnam aims to build the center based international models while ensuring national independence, sovereignty, and local distinctiveness.

Regarding the organizational model for the governing and supervisory bodies of the IFC, the finance ministry has delivered four options, each with its own advantages and limitations that need comprehensive consideration.

At the conference, delegates offered recommendations on mechanisms, policies, and solutions to ensure the center’s efficient operation. They also discussed the legal status of the governing and supervisory bodies; risk management frameworks; product, market and infrastructure structures; and strategies for training and attracting human resources.

PM Chinh emphasized that this is a challenging endeavor that Vietnam has never undertaken before. However, he expressed determination to put the center into operation soon.

“Vietnam would choose the best approach to develop a legal framework for the center, drawing on global best practices while promoting Vietnamese creativity, historical and cultural identity. It must be suitable for the country’s specific conditions in the current global context,” he stated.

The Prime Minister noted that there would be two management agencies in the two cities, but a single supervisory authority and a specialized court to handle disputes.

The center will operate based on digitalization and AI, ensuring high competitiveness and attracting development resources. Its personnel must be professional, including both domestic and international experts who can adapt global knowledge to Vietnam’s context.

Chinh noted that the center’s mechanisms and policies must be favorable and competitive, yet predictable and consistent, harmonizing tradition and innovation, and blending global excellence with Vietnamese culture.

He called for stronger connections among banks, financial institutions, and other agencies to promote the center’s success. "Licensing procedures for both financial and non-financial services should be flexible, focusing mainly on post-licensing inspection rather than pre-licensing approval."

The legal framework must be transparent, autonomous, with certain preferential policies. Throughout its development, technology transfer must be prioritized, and human resources must remain the decisive factor, he stressed.

The government leader emphasized that the IFC must not create barriers for other centers, nor should it isolate its members from external engagement. It will not only focus on finance but also encompass production, business, trade, and investment, ensuring smooth integration and competitiveness with other global financial centers.

Regarding administrative procedures, he reiterated the principle of “one-stop, one-seal, one-person accountability”, cutting unnecessary bureaucratic obstacles.

HCMC and Danang must promptly prepare necessary conditions, issue specific local policies and regulations within their authority, and harness their combined strength along with that of the entire nation, he added.