The 38th an ban Global Financial Center Index (GFCI 37), recently released by Z/ Yen Partners (UK) and the China Development Institute, showed that Ho Chi Minh City increased by 10 GFCI points, reaching 664. Thanks to that, Vietnam's economic locomotive increased by 3 ranks compared to the ranking period in March, the highest since it began to be on the ranking list in 2022. Ho Chi Minh City is also in the top 15 financial centers that are forecast to develop strongly in the next 2-3 years.
To further accelerate and operate at the right time as required by the Prime Minister, Ho Chi Minh City is thoroughly preparing in many aspects, from facilities, resources to promoting international cooperation. The Ho Chi Minh City Innovation Startup Center will be the temporary location of the first important agencies of the International Financial Center in Ho Chi Minh City such as the management and supervision agency, court and arbitration.
Regarding human resources for the operation of the International Financial Center, Ho Chi Minh City has also carefully prepared it from three main sources. The first is the rotation and secondment of appropriate talented personnel from the system. Second, recruiting talented people from international financial institutions. Third, it is the long-term cooperation in human resource training between domestic and foreign universities. With strategic solutions, Ho Chi Minh City currently has a specific personnel plan for the upcoming operation.
Regarding technology infrastructure, the Ho Chi Minh City government has worked with large corporations such as Nvidia, Intel... to operate exchange models. And the most important milestone is that Ho Chi Minh City officially signed a cooperation agreement with Nasdaq to build a capital market on October 17.
According to the content of the minutes, Nasdaq and the Ho Chi Minh City Department of Finance signed a cooperation agreement with 5 main contents: Seeking opportunities for common cooperation in areas in line with the development orientation of the Vietnam International Financial Center; supporting consultation on legal framework, governance structure and risk management mechanisms for securities and derivatives issuance activities.
The two sides also agreed to establish a joint working group to develop an action plan, monitor progress and remove difficulties in the implementation process. The working group will meet periodically at least twice a year, in person or online.
The signing marks an important first step in cooperation between Ho Chi Minh City and Nasdaq, contributing to strengthening management capacity, connecting the Vietnamese capital market with the international market and creating conditions to attract high-quality capital flows into the fields of finance - technology - innovation.
Dr. Nguyen Duy Phuong - Investment Strategy Director of DG Capital Fund - commented that the Ho Chi Minh City International Financial Center is completely capable of operation because preparations have been implemented in advance. What needs to be done immediately is to issue a specific legal framework for the center, experiment with policies on capital, foreign exchange, and fintech; develop details on the model of a multi-asset transaction office, a national payment center and financial data.
Some outstanding strategic pillars have been mentioned such as opening a sandbox for fintech innovation; attracting financial "eagles" with outstanding incentives from strong tax exemptions and reductions to open visa policies. In particular, administrative procedures will be simplified to the maximum according to the "one-stop" mechanism, even companies on the Fortune 500 list will be automatically recognized as uncked members.
It is necessary to build a special, superior and flexible financial institution, because this is the core of all successful financial centers in the world. Next is the development of financial products capable of using VND, USD and digital assets... At the same time, bringing the center in Vietnam to connect with global centers such as Dubai, Singapore, London... - Dr. Phuong expressed his opinion.
The International Financial Center in Ho Chi Minh City is oriented to develop comprehensive products and services such as the banking market, capital associated with asset management services, fund management... Meanwhile, Da Nang develops green finance, financial technology, digital services and tests asset control, digital currency, attracting investment funds.
The Government aims that the Ho Chi Minh City financial center will be put into operation from 2025 and completed within 5 years. This center is planned in Saigon ward, Ben Thanh (old district 1) and Thu Thiem urban area, with a total area of 783 hectares. Of which, the land area accounts for 719 hectares, the rest is the Saigon River with an area of 64 hectares. In the first phase, the 9.2ha core area in Thu Thiem will be prioritized for implementation, as the headquarters of specialized management, supervision and arbitration agencies in the financial sector.
The total preliminary investment capital of the entire project is expected to be about 172,000 billion VND (equivalent to 7 billion USD). The core area alone needs about VND16,000 billion to be implemented in the first 2-3 years, of which VND2,000 billion is from the State budget to build headquarters for State agencies. The remainder is expected to be mobilized from domestic and foreign strategic investors.
