During his speech at a Wednesday conference on the implementation of the 13-tenure Politburo’s Resolution No. 26-NQ/TW regarding socio-economic development and national defence and security in the north-central and central coastal regions by 2030 with a vision to 2045, Da Nang Party Committee Secretary Nguyen Van Quang affirmed that his city targeted to become one of the major socio-economic centers of the country and Southeast Asia, with the role of a hub for startup, innovation, tourism, commerce, finance, logistics, high-tech industry and information technology.

Da Nang Party Committee Secretary Nguyen Van Quang speaking at the conference

Under the direction of the Prime Minister, the city has actively coordinated with ministries, branches, and domestic and foreign experts, to develop a project to build Da Nang into a regional financial center. The project has been submitted to the national government for consideration.

The project is developed on the basis of the city’s competitive advantages, including favourable geographical location and connectivity, improved urban infrastructure, and quality living environment.

The city is oriented to become a national innovation center, with sufficient foundation and infrastructure advantages to form a financial technology (fintech) center, along with a fairly large clean land fund of 6.17 ha which is planned to serve the establishment of the financial area with good conditions of connection location and infrastructure.

However, the project also pointed out many difficulties and challenges, including small economic scale, limited financial markets, and unmodern infrastructure.

Regarding the selection of a development model, the city proposes a development model based on three main functions, including providing financial services, also known as offshore financial centers, a financial technology (fintech) center, and auxiliary activities for financial activities and utility services.

In its latest assessment, the Ministry of Planning and Investment highlighted the significance and efficiency of an offshore financial center model which can be applied immediately to fully tap Viet Nam's current advantages. At the same time, it is possible to both deploy and research the model to limit potential risks from the development of a financial center, thereby gradually moving towards building a regional and international-level financial center.

As for the fintech center, the project has pointed out the strengths and weaknesses of the fintech ecosystem in Viet Nam. However, such factors of fintech in Viet Nam as market size, infrastructure and human resources are still modest in comparison with other nearby financial centers such as Singapore and Shanghai, China.

With regard to utility service activities, the project proposes a number of real estate investment activities, and utility and entertainment services, in the financial center, which is considered to be crucial factors to improve services and quality of life.

To achieve the aforementioned objectives, the city is in need of a strong breakthrough in mechanisms and policies; a synchronous, highly attractive legal framework in line with international practices; and an appropriate implementation roadmap, in order to develop a financial center with regional and world status in the form of soft space and centralised management.

Under the project, some groups of industries will be allowed to operate in the Da Nang International Financial Center, including groups of industries and professions directly related to finance - banking such as media financial services and fintech, and groups of auxiliary professions and utility service activities such as auditing, accounting, and legal and dispute resolution services.

On that basis, the city has proposed special and preferential policies such as a preferential mechanism for strategic investors investing in building and developing the financial center in Da Nang, and the other for economic organizations to be established in financial centers, and tax preferences.

Besides, there will be mechanism of capital mobilization of domestic organizations through Da Nang International Financial Center, immigration policy and dispute resolution policy.

Also, credit institutions are encouraged to establish their own branches in financial centers, and provide foreign exchange services to non-residents and economic organizations in other financial centers.

Da Nang has proposed a specific implementation plan as follows:

In two years of 2022 and 2023: The city will finalize the project and submit it to the national government for approval and to the Politburo for guidelines and orientations. Then, the project will be submitted to the National Assembly for consideration and issuance of a resolution regarding the development of the International Financial Center in Viet Nam.

During the 2023 - 2024 period: importance will be attached to selecting a strategic investor to develop a financial center in Da Nang, and proposing a mechanism to establish the International Financial Center’s Development Council in Viet Nam to perform the function of management and supervision.

Between 2024 and 2030, attention will be paid to developing infrastructure of the Da Nang financial center, including both hard and soft infrastructure; attracting international financial institutions and influential technology companies in the world to gradually implement activities of an offshore financial center; developing technical infrastructure and operational space for fintech; and amending and supplementing relevant legal provisions.

From 2030 onwards, heed will be on transforming the financial center model to provide financial services in the country and some countries in the Asia-Pacific region, aiming to turning the city into a regional-scale financial center and national-level fintech by 2045.

In order to fulfill its targets, in the coming time, Da Nang will continue to coordinate with ministries and sectors to complete the project under the direction of the Government, work with domestic and foreign investors to study and absorb the practical experience of financial centers in the world, and evaluate the ability to attract investment when building an international financial center in the locality.

Priority will be given to perfecting the modern technical and social infrastructure according to the smart city model, with breakthroughs of connecting domestic and international traffic infrastructure, boosting digital transformation, and promoting the development of information technology and high-tech industry.

The focus will be on effectively exploiting Da Nang International Airport and the Tien Sa Seaport, building Lien Chieu Seaport and road and railway transport infrastructure, thereby creating economic dynamism associated with the goal of turning Da Nang into one of the strong marine economic centers of national and international stature.

Last but not least, heed will be attached to conducting research and proposing mechanisms, policies, and incentives for investment activities, especially human resource training, so as to make Da Nang become a hub for finance, innovation start-up, international events, high-quality healthcare, culture and education, conferences, non-tariff zones, high-class entertainment resorts, ecosystems, and living and working spaces that satisfy the needs of international and regional financial investors.

Reporting by DNO - Translating by M.DUNG