JOURNALIST: - What financial center model should Ho Chi Minh City aim for to compete with leading financial hubs worldwide?
Associate Professor, Dr. Nguyễn Hữu Huân: - Various proposals have been made, but I believe Ho Chi Minh City should adopt the fintech (financial technology) model. The city's financial center must differentiate itself by integrating advanced technology, setting it apart from well-established hubs like Hong Kong, Shanghai, Singapore, and Dubai.
Implementing this model requires robust policy frameworks and infrastructure development. Beyond physical infrastructure, emphasis must be placed on soft and technological infrastructure to foster a thriving financial ecosystem. For example, the city should explore creating a new stock market using blockchain technology to enable T+0 transactions—where securities and payments are settled on the same day—with high transparency. Currently, no decentralized stock market based on blockchain technology exists globally, making this an opportunity for Ho Chi Minh City to pioneer a unique system.
Furthermore, this financial center should not only attract multinational financial corporations but also foster the growth of fintech startups. The establishment of an innovation-friendly ecosystem, complete with regulatory sandboxes for controlled experimentation of new financial products, will help set the city apart from its competitors.
According to the current plan, the financial center will be located in Thu Thiem and part of District 1. However, office rental costs in these areas are already high, with limited availability. To accommodate expansion and scalability, satellite financial hubs in areas such as Can Gio and Binh Chanh should be considered. These locations offer ample land for constructing iconic buildings and specialized zones to support fintech startups and innovative financial services.
- If Ho Chi Minh City adopts the fintech-driven financial center model, what conditions are necessary for successful implementation?
- A critical requirement is the establishment of regulatory sandboxes to test new fintech solutions in a controlled environment. Additionally, a robust financial data infrastructure, integrated with cutting-edge technologies such as artificial intelligence (AI), blockchain, and big data, is essential to support the center’s activities.
Cybersecurity will be a top priority, requiring close collaboration with the Ministry of Public Security and specialized cybersecurity agencies to safeguard financial transactions and prevent cyber threats.
The financial center should support transactions in multiple strong global currencies, including the U.S. dollar (USD), euro (EUR), British pound (GBP), and Chinese yuan (CNY). Furthermore, consideration should be given to incorporating digital assets such as cryptocurrencies and central bank digital currencies (CBDCs) to enhance financial flexibility and attract investors.
A key distinction of this financial center should be the free movement of capital. Unlike Vietnam’s current regulatory framework, the financial center should allow unrestricted currency transactions with external markets while remaining segregated from the domestic economy to mitigate risks such as currency speculation and attacks. Simultaneously, stringent anti-money laundering (AML) policies must be enforced to ensure compliance with international financial standards and prevent illicit financial flows.
Institutional reform is another fundamental requirement. The investment approval process must be streamlined to enhance efficiency, with automated registration and approval mechanisms to facilitate business operations within the financial center.
To ensure the success of this financial center, Vietnam must develop a legal framework that supports a fintech-oriented model. Laws governing digital assets, blockchain transactions, and financial technology innovations should be established to provide legal clarity and security for investors. Additionally, an independent regulatory body should be created to oversee fintech activities, ensuring compliance with global financial standards.
- City leaders have emphasized human resources as a key driver of financial center development. In your opinion, how can this be optimized?
- Ho Chi Minh City has a strong foundation in fintech education, with several universities offering specialized training programs. However, collaboration with top international universities is essential to elevate human capital to a globally competitive level.
Training should focus on specialized fields such as financial technology, risk management, data analytics, and blockchain applications. Additionally, professionals managing the financial center must receive advanced training or international exposure in leading financial hubs like New York and London. This global perspective will provide a deeper understanding of financial market dynamics, enabling Ho Chi Minh City to develop a world-class financial ecosystem.
Furthermore, policies should be implemented to attract international talent, particularly experts in banking, finance, and technology. A combination of local and international expertise will ensure the financial center operates at the highest standards.
Government incentives, such as tax benefits and streamlined work visa policies, can help attract highly skilled foreign professionals to contribute to the center’s success. The development of research institutions and think tanks focused on fintech advancements will also support long-term innovation and sustainability.
Ho Chi Minh City has set a timeline of 5-10 years to establish its international financial center. This timeframe is feasible, provided that preparatory steps—such as developing a strong legal framework, fostering a supportive financial ecosystem, and investing in modern infrastructure—are undertaken promptly.
By embracing financial technology and innovation, Ho Chi Minh City has the potential to position itself as a leading financial hub in Asia. The key to success lies in differentiating itself from traditional financial centers by leveraging cutting-edge technology, regulatory flexibility, and strategic talent acquisition.
Government support, foreign direct investment, and collaborations with global financial institutions will play a crucial role in shaping the future of this financial hub. If executed effectively, Ho Chi Minh City could emerge as a benchmark for future fintech-driven financial centers worldwide.
- Thank you for your insights.
