HCMC seeks special mechanisms to become int’l financial hub

Ho Chi Minh City People’s Committee Chairman Nguyen Thanh Phong told a recent workshop on this issue that finance had been targeted as one of the city’s nine key services since 2001.

To date, Ho Chi Minh City has recorded a financial growth rate of 8.8 percent per year on average, contributing 5.7 percent to the city’s gross regional domestic product (GRDP) and mobilizing capital of approximately VND460 trillion each year. Despite positive results, the city’s financial market still faces many difficulties due to the lack of mechanisms, policies and high-quality human resources, hindering its plan to become an international financial center.

Ho Chi Minh City Party Committee Secretary Nguyen Thien Nhan said the city has not taken serious measures to implement its master plan, while the central government has not issued proper mechanisms and policies. “We are behind the rest of the world in setting up financial centers like this, but I do believe that with Vietnam’s brainpower we can seize all opportunities,” Nhan said.

Specifically, Nhan asked the Ho Chi Minh City People’s Committee to complete the detailed project of developing the city into an international financial center and report to the city’s people’s council, party committee and the government by October 2019, with the first bidding packages to kick-off in the middle of next year.

Nhan also outlined other necessary tasks, including improvement of administrative procedures and of the investment environment, completing the infrastructure system, speeding up plans to fight floods, and promoting startup initiatives.

As a financial center, Ho Chi Minh City would be home to leading financial companies, providing diversified services and relevant products for the business world. Ho Chi Minh City’s favorable geographic location is a key advantage for developing such services.

According to economist Vu Thanh Tu Anh from Fulbright University, which was assigned by Ho Chi Minh City People’s Committee to set up the plan, any financial center must include urban space and a well-oiled financial system, rather than simply housing.

He added that a breakthrough in fintech is of the utmost importance to keep up with global trends. “With the available human resources, we are confident about creating an international financial center. However, we need support from the government in legal procedures and regulations to reach international standards,” Anh said.