Fintech helps Ho Chi Minh City's international financial center 'take off'

Speaking to Tuoi Tre Online, Associate Professor Dr. Tran Hoang Ngan said that it's time for Ho Chi Minh City to make its dream of building a comprehensive international financial center come true.

According to Mr. Ngan, many countries worldwide have accelerated their development thanks to international financial centers. 

Therefore, with superior mechanisms in place, the implementation of building a financial center will be fast, effective, and sustainable.

Mr. Ngan believes that the international financial center will have a favorable legal and institutional environment, transparency, and compliance with international standards, as well as outstanding preferential policies to attract investors.

Additionally, the State will heavily invest in infrastructure, including both "hard" infrastructure like physical facilities and center buildings, and "soft" infrastructure such as digital systems, connectivity, and financial technology.

Moreover, this center will be a hub for high-quality human resources, attracting both domestic and international experts.

Notably, Mr. Ngan emphasized that the international financial center will establish global connections, building relationships with major financial centers worldwide through international cooperation and attracting large financial corporations. The center will also prioritize the strong development of financial technology (Fintech) activities and support startups in the Fintech sector.

Meanwhile, Associate Professor Dr. Nguyen Huu Huan (senior lecturer at Ho Chi Minh City University of Economics) pointed out a breakthrough difference for the international financial center in Ho Chi Minh City. The center aims to develop as a Fintech hub, combining finance and technology.

This strategy aims to transform Ho Chi Minh City into a gathering place for global Fintech companies, as the city possesses many advantages in terms of technology and telecommunications infrastructure. The city also shows readiness to embrace new technologies such as blockchain, cryptocurrency, and digital currencies. These favorable conditions make Ho Chi Minh City an ideal location for establishing a modern financial center with a strong focus on technological innovation.

Associate Professor Dr. Hoang Cong Gia Khanh - Principal of the University of Economics and Law (Vietnam National University Ho Chi Minh City) observes that the rapid development of disruptive financial technologies has been reshaping the growth and future of the financial services industry.

In this context, instead of pursuing the traditional model that already faces intense competition, Ho Chi Minh City should consider developing into a Fintech hub through building a comprehensive Fintech ecosystem that encourages innovation, testing, and learning approaches in its journey to become an international financial center.

According to Dr. Khanh, Ho Chi Minh City needs to focus on developing key components that make up a Fintech hub, similar to other regional and global Fintech hubs currently operating.

Dr. Khanh suggests prioritizing the establishment of a vibrant Fintech startup community by creating a shared space for the Fintech and startup community, ensuring continuous support programs and plans for new startup companies.

Additionally, the expert emphasizes the importance of implementing coordinated policies to attract investment from well-established and dynamic companies, as well as angel investors, to increase access to venture capital funding. These measures would help create a robust financial ecosystem that supports innovation and growth in the Fintech sector, making Ho Chi Minh City a competitive player in the global Fintech landscape.

The experiences of Singapore and London demonstrate that strong political commitment and proactive regulatory oversight are crucial factors in creating competitive advantages.

"To keep pace with the rapid development of innovation, it is necessary to allow controlled experimental mechanisms (sandbox) - a flexible regulatory framework based on practical testing.

The sandbox helps create a balance between exempting legal regulations and protecting consumers. It not only facilitates innovative activities but also limits potential negative impacts on end users," Dr. Khanh explains.

Dr. Truong Minh Huy Vu - Director of the Ho Chi Minh City Development Research Institute - believes that the advancement of financial technology (Fintech), especially blockchain technology and artificial intelligence (AI), opens up new opportunities for Ho Chi Minh City to realize its aspiration of becoming an international financial center.

Dr. Vu observes that new financial technologies like blockchain and AI are developing very rapidly, creating challenges for implementing appropriate and effective policies.

The fast pace of technological innovation means regulatory frameworks must be agile enough to adapt while still maintaining proper oversight and consumer protection. This requires careful consideration of how to balance innovation with risk management as the city pursues its financial hub ambitions.

In this context, it is important to move away from the mindset of "if we can't manage it, we should ban it" and instead create opportunities to engage with diverse development practices from around the world. Therefore, the city will take the lead in seizing opportunities while anticipating risks to develop new technologies.

Minister of Planning and Investment Nguyen Chi Dung announced that to implement the Politburo's conclusions, the Government has issued Resolution 259 approving the implementation plan for developing Vietnam as a regional and international financial center.

The plan focuses on 5 key areas (please refer to the graphic below):

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Source: tuoitre.vn / 31-Jan-2025 / https://tuoitre.vn/fintech-la-be-phong-de-trung-tam-tai-chinh-quoc-te-tp-hcm-cat-canh-20250131133842349.htm