In the new development phase, Vietnam is setting a double-digit economic growth target in the medium and long term. This is an ambitious but completely grounded goal as the economy is entering a period of strong shift to a growth model based on technology, innovation and deep integration into the global value chain. However, to achieve this goal, the decisive factor is the ability to mobilize and allocate financial resources to the economy.
Vietnam's capital needs in the coming period are very large. The process of industrialization, infrastructure development, energy transformation, digital transformation, as well as expanding production capacity to participate more deeply in the global supply chain all require investment capital on a scale of hundreds of billions of USD. The green transformation process alone to achieve the goal of net zero emissions by 2050 already needs capital estimated at hundreds of billions of USD in the coming decades. Meanwhile, strategic infrastructure projects such as airports, seaports, logistics, energy, smart cities or high-tech industries all need long-term, stable and reasonably costly capital.
However, the structure of Vietnam's financial system today is still heavily dependent on the banking system. Banks are still the main capital channel for the economy, while the capital market and international capital mobilization channels have not developed commensurate with the scale and potential of the economy. Vietnam's credit-to-GDP ratio is currently quite high compared to many economies with similar levels of development, and has been repeatedly warned by international organizations such as the World Bank about potential risks if the financial system continues to depend too heavily on bank credit.
This reality shows a structural problem: The economy is lacking long-term and large-scale capital channels from the international market. When the banking system has to bear most of the capital needs of the economy, pressure on macroeconomic financial stability will increase, and the ability to finance large-scale and long-term projects is also limited.
In that context, the formation of an international financial center in Vietnam is not only a strategic step to enhance Vietnam's position on the global financial map, but also an urgent requirement to restructure the national financial system, diversify capital mobilization channels and strongly attract international capital flows.
Vietnam International Finance Center in Ho Chi Minh City (VIFC-HCMC) is oriented to become a platform connecting global capital flows and the capital needs of the Vietnamese economy. Unlike the traditional financial model mainly based on the domestic banking system, VIFC-HCMC is designed to create an open financial ecosystem where international financial institutions, investment funds, investment banks, asset management companies and businesses can meet, trade and mobilize capital directly for projects in Vietnam.
Through VIFC-HCMC, Vietnam can gradually form a large-scale international capital channel for the economy. Domestic businesses can directly access global investors through issuing shares, international bonds, or through investment funds and modern financial structures. This helps reduce pressure on the banking system, while creating long-term capital for development projects.
One of the important roles of VIFC-HCMC is to develop the international capital market associated with the Vietnamese economy. When a financial center is formed, international financial institutions will have the conditions to be present in Vietnam, bringing in in-depth financial services such as investment banking, asset management, trade finance, project financing and financial risk prevention products. The presence of these institutions will help form a deep financial ecosystem, improving capital mobilization capacity for businesses and the economy.
In addition, VIFC-HCMC is also oriented to develop new financial sectors in line with world trends, including digital finance, Fintech, green finance and innovative financial products. These are sectors that are attracting a very large amount of investment capital globally. If Vietnam builds a favorable testing and operation environment for new financial models, VIFC-HCMC can become an attractive destination for investment funds, financial technology companies and international investors.
An important difference of VIFC-HCMC compared to traditional financial centers is the approach of "going straight to modernity". Instead of developing according to the traditional decade-long roadmap, VIFC-HCMC was designed from the beginning with a digital technology platform, modern trading system, and controlled testing mechanisms for new financial products. This allows Vietnam to take advantage of the advantage of later generations to shorten the gap with financial centers in the region.
VIFC-HCMC is also built on a specific institutional platform with a higher level of openness, allowing testing of new financial models and gradually creating more favorable conditions for international capital flows. The formation of a transparent, highly predictive financial environment and close to international practices will help strengthen the confidence of global investors in the Vietnamese market.
In the long term, VIFC-HCMC's biggest role is to help Vietnam transition from an economy mainly dependent on bank credit to an economy with a more balanced financial structure, in which the capital market and international capital flows play an increasingly important role. At that time, financial resources for growth will not only come from the domestic banking system, but also from investment funds, international financial institutions and global investors.
If implemented in the right direction, VIFC-HCMC will not only be a financial center serving Vietnam alone, but may also become a gateway connecting international capital flows with the entire ASEAN region and the supply chain that is shifting strongly into this region. In the context of the world restructuring the value chain and global capital flows, Vietnam has a great opportunity to
In summary, Vietnam's double-digit growth target in the coming period will not be achieved if it is only based on traditional capital channels. The formation of an international financial center in Ho Chi Minh City is a strategic step to open a new capital mobilization channel for the economy. With the role of a bridge between global capital flows and domestic investment needs, VIFC-HCMC can become an important driving force to help Vietnam attract international financial resources, promote rapid and sustainable growth in the new development period. become a new destination for international capital flows, and VIFC-HCMC will play the role of a strategic financial infrastructure to realize that opportunity.
