HCMC qualifies for international financial center

At the seminar, leading scientists, industry experts, businesses and organizations discussed the movements of the global economy in the complicated context of the Covid-19 epidemic. One of the topics that were most interested and discussed by delegates was the need to form an international financial center (TTTC) in Vietnam.

Inevitable trend

HCMC qualifies for international financial center TS Trần Du Lịch phát biểu tại hội thảo

Dr. Tran Du Lich, a member of the Economic Advisory Group of the Prime Minister, analyzed the Resolution of the XIII National Congress of the Party passed the 5-year socio-economic development strategy (2021-2025). ) has a set of tasks: To effectively develop large cities and areas of Ho Chi Minh City; research and establish a specific mechanism to promote the development of Ho Chi Minh City into an international financial market. This is an important basis in the context that Ho Chi Minh City is restarting the construction of regional and international financial markets.

Because, the goal of building regional and international financial markets was cherished by Ho Chi Minh City 20 years ago. At that time, the scale of the financial market in Ho Chi Minh City was very large. Up to now, the scale of the financial market of Ho Chi Minh City is getting smaller. Although still increasing in absolute value, in fact, the proportion of contribution to the whole country has signs of decreasing. Therefore, this goal should be soon formed and determined to be implemented so that HCMC does not lose the opportunity to become an international financial market.

Dr. Tran Du Lich proposed a 3-stage roadmap for the development of the international financial market in Ho Chi Minh City. Specifically, 2021-2025 will be the period to confirm the role of the financial market of Ho Chi Minh City. In the period of 2026-2030, it will raise the level of becoming a regional financial market. The next 10-15 years period will be a real international financial market, because in order to form an international financial market, there must be two more conditions, namely capital account liberalization and currency conversion. Those things take time.

Regarding the other provinces and cities also want to become financial centers, Dr. Tran Du Lich said that the model that the provinces – cities are targeting is only creative start-up centers, digital technology centers, but not necessarily. converge all the conditions into TTTC. “No place in this country is qualified to become a regional and international financial center outside HCMC. If HCMC cannot do it, nowhere can do it ”, Dr. Tran Du Lich emphasized. However, to form an international financial market, HCMC should be at the forefront of fintech (financial technology) products, not traditional products.

Needs specific mechanisms

Many experts also said that the goal of Ho Chi Minh City to become an international financial market is a great aspiration. In order to form an international financial market, this issue should be built up under the national project and in particular need a specific mechanism in the construction process.

Prof. Dr. Su Dinh Thanh – Rector of the University of Economics Ho Chi Minh City said that although Ho Chi Minh City has set the goal of becoming an international financial market for 20 years, if there is no ambition, no determination, choose a model. and the right direction is difficult to succeed. Ho Chi Minh City needs sandboxes (controlled testing mechanism) that allows a small number of businesses to test new technologies, new business models under the supervision of managers and have contingency plans. appropriate risk, prevent consequences of failure so as not to have a big impact on the national financial system, the new international financial market will be gradually shaped.

However, with the current rate of Ho Chi Minh City budget being kept only 18%, it is difficult to develop because there is a lack of capital to invest in infrastructure, serving the people. Therefore, it is necessary to have more favorable policies for provinces and cities to play a driving force for development, especially in Ho Chi Minh City, for the country’s economy to have a chance to break through.

HCMC qualifies for international financial center Many banks apply technology in transactions. Photo: CAO THANG

According to Dr. Truong Van Phuoc, a specialized member of the Economic Advisory Group of the Prime Minister, has a view that the Ho Chi Minh City Financial Center must have a skyscraper in Thu Thiem New Urban Area, concentrating banks and funds. investment, finance companies … there is confusion between the construction and development of physical infrastructure with the structural infrastructure. The important issue here is to have a mechanism that can create products and services that meet the needs of the international finance and investment circles. Building a financial market requires a consensus, unified will of the whole country and the support of the whole political system.

Because, the financial market is an institution of the capital market, the money market that if State agencies such as the Ministry of Finance and the State Bank do not agree, they will not be able to do it. “I think, should build a national financial center located in Ho Chi Minh City to serve the country. And the sandbox is not only for Ho Chi Minh City but also for Vietnam ”, Mr. Phuoc shared.

In order for Ho Chi Minh City to truly become a regional and international financial market, Dr. Tran Du Lich said that it is necessary to solve 3 problems: There is a specific mechanism for Ho Chi Minh City to implement the project; HCMC must truly be a place worth living for international investors; National, rather than local, action plans are needed.

* Prof. Dr. Tran Ngoc Tho, Member of National Financial and Monetary Policy Advisory Council.

Must have great ambitions

If there is no ambition to equal or exceed the current major international financial markets, will the construction of international financial markets located in Ho Chi Minh City be successful? With a population of nearly 100 million people, the world is considered to have the potential to become the technology pillar of the region with the first “unicorn”, VNG, with an estimated market value of 2.2 billion USD and many Other formidable technology startup (start-ups) such as FastGo, Abivin, Logivan, VNPay …, this potential is witnessing a wave of venture capital funds entering Vietnam. However, the inadequacies in the strict financial and securities regulations have made the waves of technological innovation and the sources of venture capital funding us face many limitations. Therefore, it is time for Vietnam to need a breakthrough mechanism to create a new generation of economic zones (SEZ) according to the model of digital free economic zones (DFTZ). With “natural times, favorable conditions, and humanity”, Ho Chi Minh City is considered to be the place that meets many conditions to establish a special financial district – Vietnam International Financial Center.

* Mr. Thomas Hung Tran, Specialist of Fraud Prevention and Financial Crime (UK).

Improved response to financial crime

Developing the financial market and becoming a financial market has become the goal and strategy of emerging countries. This is the right economic development strategy, because only when the financial market reaches a certain level of development will capital from business owners and investors circulate effectively to potential entities. the need to use capital in the economy, which facilitates technology transfer, brainpower and managerial experience. However, this strategy at the same time attracts financial criminals, who understand the capital needs in emerging markets, as well as the primacy of measures to identify and defend against financial crimes. these markets. Currently, Vietnam is the target of many transnational financial crime groups to launder money. Therefore, Vietnam needs to improve its ability to respond to financial crimes, helping the financial market to maintain its goal of being an attractive destination for business owners and true investors. MINH HUY noted

HANH NHUNG – YEN LAM

Source: sggp.org.vn – Translated by fintel.vn

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