Prime Minister Pham Minh Chinh recently chaired a conference to declare the creation of an international financial center (IFC) in Vietnam. At the same time, the coordinating council for the IFC was launched, with the Permanent Deputy Prime Minister, Nguyen Hoa Binh, at its helm.
Prime Minister Chinh underscored the importance of establishing the IFC, stating that it signifies a major turning point in Vietnam’s integration and development following 40 years of Doi moi (Renewal). The creation of the IFC is an urgent need based on Vietnam’s potential, advantages, and forward-thinking vision for rapid, sustainable progress. It is a strategic choice and an effective solution that reflects the need to restructure global investment flows and Vietnam’s ambition to achieve new heights during the nation’s ascent.
Chinh emphasized that Vietnam is not seeking to compete with other IFCs worldwide but aims to forge its distinct path with unique, superior mechanisms and policies. This will result in a complementary, interconnected model, providing a cohesive, efficient, and sustainable financial ecosystem.
According to Chinh, the IFC’s inception marks the start of an innovative process in the financial market development, with widespread implications for all sectors, institutions, and entities within the country.
The IFC is anticipated to enhance Vietnam’s position, making it an essential part of the global financial security network. It will facilitate the mobilization of efficient, large-scale, and low-cost capital for strategic infrastructure development without increasing public debt. Moreover, it will serve as a platform for Vietnamese businesses to expand internationally and adhere to the most advanced governance standards.
The IFC also represents an institutional breakthrough. The benefits of the IFC extend beyond monetary gains and include innovation in management thought and advanced technology. International competition is expected to drive administrative reforms towards greater transparency and comprehensive digitization.
For the IFC to operate effectively, Prime Minister Chinh urged ministers, heads of sectors, chairpersons of the People’s Committees of HCM City and Da Nang, and relevant agencies to ensure decisive, collaborative, and productive execution of the assigned tasks and measures.
Chinh also encouraged partners, domestic and international businesses, and investors, to collaborate and support Vietnam throughout the IFC development process. He stressed the importance of reforming management mindset towards a more enabling and service-oriented approach, aligning socio-economic infrastructure and ecosystem with international standards.
Chinh requested the supervisory body to operate independently and transparently, in line with international commitments to prevent money laundering and facilitate the flows of clean capital into Vietnam.
He also advised Vietnamese businesses and investors to remain confident, resilient, and united, seize opportunities, and enhance cooperation to grow. He stated that the IFC is a stepping stone for them to expand their reach regionally and globally.
Despite the challenges ahead, Chinh expressed confidence that with the consensus of the political system, the active involvement of the business community and people nationwide, and international support, Vietnam will successfully develop a free, digital, green, safe, transparent, competitive, efficient, and sustainable IFC. This will pave the way for the country to progress towards a new era of prosperity, civility, and happiness, and take firm steps towards socialism.
Representatives of domestic and international businesses and investors lauded the establishment of the IFC and committed to helping attract international capital to Vietnam, implementing financial and banking mechanisms, and investing robustly in digital transformation, green finance, and inclusive finance.
What is the purpose of the International Financial Center (IFC) in Vietnam?
The IFC is anticipated to function as a strategic and effective solution to restructure global investment flows, boost Vietnam’s position in the global financial security network, and serve as a platform for Vietnamese businesses to expand internationally.
What is the expected impact of the IFC?
The IFC is expected to drive innovation in the financial market and encourage administrative reforms towards greater transparency and comprehensive digitization. It will also facilitate the mobilization of efficient, large-scale, and low-cost capital for strategic infrastructure development without increasing public debt.
How will the IFC benefit Vietnamese businesses and investors?
The IFC will provide Vietnamese businesses and investors with a platform to expand their reach regionally and globally. Additionally, it will usher in increased cooperation, resilience, and confidence among businesses, paving the way for growth and prosperity.
