Dr. Le Xuan Nghia, a member of the National Financial and Monetary Policy Advisory Council cum former Vice Chairman of the National Financial Supervisory Commission, presents his opinions on prerequisites to build an international financial centre in Da Nang.

Urban landscapes along a bank of Da Nang's Han River

He said if an international financial centre is successfully developed in Da Nang, the central coastal city will become the pole connecting and spreading the finance of the Central Viet Nam and Central Highlands regions, with highlights of financial activities and prize-winning entertaining games associated with resort services, conferences, entertainment and high-class trade. This will help the city gradually become one of the leading destinations in Asia.

According to Mr. Nghia, the development of an international financial centre in Da Nang is more reasonable than in Ho Chi Minh City or Ha Noi. The main reason is thought to be that, in either Ho Chi Minh City or Hanoi, it is very difficult to earmark a large and independent plot of land like Da Nang. If the centre is too far from the city centre, it is also not possible.

Additionally, the central coastal city converges many favourable factors to successfully build a financial centre.

Specifically, the city is very inviting to both domestic and foreign tourists thanks to its favourable geographical position, improved infrastructure, healthy environmental quality, stunning natural landscape and impressive cultural identity.

Besides, it is now home to world-class entertainment works developed by Viet Nam’s leading private enterprises such as Sun Group and Vin Group.

Da Nang was also honoured to be chosen to host the APEC 2017 Economic Leaders' Week, and it is the only place to organise the International Fireworks Festival for many consecutive years.

He also suggests the financial centre need to provide financial services to non-residents because many people come to Da Nang not only to travel but also to do business.

In Da Nang, there are also many small and medium-sized enterprises, industrial parks, export processing zones, and entertainment resorts. When the population is small, the users of financial services are also less. Banks, insurance companies, securities companies must have customers.

Therefore, it is necessary for the city to attract more people from other localities to live and work here. To do so, Da Nang needs to build more model urban areas according to modern and methodical planning and management standards to attract elites and middle class people to live and work in Da Nang. In addition, technology should be used to connect a large area from the heart of the financial centre.

Dr. Le Xuan Nghia

How to build an international financial centre in Da Nang?

According to the financial expert, it is reasonable to locate an international financial centre in Da Nang in order for the central region to become the largest industrial and tourist area in Viet Nam. Financial centre must be associated with businesses because businesses are the main users of financial services.

In Asia, there are developed financial centres in Singapore, and Hong Kong (China, but Da Nang should follow the style of Macao (China) with a medium scale centre associated with resort tourism and entertainment.

The big difference between Da Nang and Ho Chi Minh City in building a financial centre is that Da Nang has the advantage of combining with other convenient service activities such as convalescence, tourism, entertainment, thereby creating a distinct highlight for international tourists and investors.

Da Nang is based on competitive advantages in terms of tourism and resort combined with international financial institutions, hereby creating a very rich and diverse market and linkage.

This reflects some similarities with the financial centres located in Singapore and Dubai, contributing to promoting the strengths of Da Nang, spreading the development to the central tourist area, and promoting the image of the region to the international tourism community.

Mr. Nghia proposes that Da Nang should build a financial centre in the direction of an industrial and resort financial ecosystem, towards the development of a green economy and a circular economy.

He underlines a must-do for the city to issue preferential policies for strategic investors, from tax and land rental fee exemption and reduction for long-term period, allocate clean land to businesses, and simplify the site clearance and compensation process, in a bid to gather resources from private enterprises.

Special attention should be paid to developing a few large commercial centres and commodity trading floors to fully experience human needs, and as well as to promoting communications and marketing services.

Da Nang needs to have at least two large commercial centres: one specialising in selling ordinary goods and the other in building materials and furniture, and a professional casino.

“When doing that, I have confidence that Da Nang will become the leading financial centre of the region towards a global vision in the future” Mr. Nghia emphasised.

Reporting by Dr. Le Xuan Nghia  - Translating by M.DUNG