To attract top-tier investors, Việt Nam must align its financial centres with global criteria: sustainability, digitalisation and innovation.

Permanent Deputy PM Nguyễn Hòa Bình meets with VIS experts. — VNA/VNS Photo

LONDON — Việt Nam can rise as a major international financial centre, both regionally and globally, with a strategic vision that highlights transparency, a skilled workforce, modern infrastructure, robust financial markets, and strong international branding.

That was the message from the Việt Nam Intellectual Society in the UK and Ireland (VIS) who were meeting visiting Vietnamese Permanent Deputy Prime Minister Nguyễn Hòa Bình.

With HCM City ranking 98th out of 121 global financial centres and classified as a 'local specialist' in the Global Financial Centres Index (GFCI), released on March 20, Việt Nam has a plethora of strategic options to develop its financial hub.

One approach is to focus on key financial services such as asset management, financial technology (Fintech), and green finance, aiming to become a leading specialist financial centre in ASEAN and, eventually, on a global scale. Alternatively, Việt Nam could pursue a diversified model, offering a full range of financial services, including banking, capital market and insurance, experts suggested.

According to the intellectuals, Việt Nam need not limit itself to a single path. A hybrid approach that combines specialisation and diversification could maximise growth opportunities. Regionally, Việt Nam can capitalise on the trend of companies relocating from China, offering them access to both domestic and foreign capital.

The VIS identified HCM City as a prime candidate to become full-spectrum hub, urging tighter asset management policies, broader investment portfolios, funding for large-scale public-private partnerships and further growth of fintech and green finance sectors.

With its unique geographical advantages, Đà Nẵng could carve out a niche in sustainable finance initiatives, such as green and climate finance. By doing so, the city could establish itself as a regional financial centre focused on sustainability.

However, the experts cautioned that HCM City and Đà Nẵng should avoid overlapping in their areas of specialisation, which could lead to a 'race to the bottom' that ultimately benefits another country. Instead, each city should focus on its strengths to complement each other.

To attract top-tier investors, Việt Nam must align its financial centres with global criteria: sustainability, digitalisation and innovation. VIS experts proposed raising the foreign ownership limit in Vietnamese commercial banks from 30 per cent to 49 per cent, with a long-term target of 60 per cent. This move is expected to expand the banking sector, improve service quality, align with international standards and lower capital costs.

A transparent legal framework is crucial for fostering trust and fairness. Stock exchanges must operate as impartial intermediaries and the growth of institutional investors and diverse investment models should be encouraged. Professionalising financial intermediaries will improve market quality and facilitate Việt Nam’s upgrade from a frontier to an emerging market.

Improving corporate governance by adopting international environmental, social, and governance (ESG) standards will promote sustainable development. A phased roadmap to attract top global financial professionals, collaborate with international organisations and introduce incentives for overseas Vietnamese talent is essential. Integrating financial English into official training curricula will align Việt Nam’s financial centre with global standards, according to the experts.

VIS Chairman Professor Nguyễn Xuân Huấn said as a network of nearly 200 scientists, researchers and financial experts in the UK and Ireland, VIS would be committed to supporting Việt Nam’s financial aspirations.

Through specialised training, policy research and knowledge-sharing initiatives, VIS aims to train financial professionals, provide expert consultations, and facilitate collaborations between Vietnamese businesses and global financial institutions, according to Huấn.

With strong connections in the UK’s financial education, research, and market sectors, VIS can help Việt Nam navigate the complexities of capital mobilisation, investment strategies, corporate governance, financial management and risk mitigation. By leveraging international expertise in digital technology, IT security and financial innovation, VIS is poised to play a pivotal role in Việt Nam’s journey to becoming a global financial powerhouse. — VNS

Read original article here