The Da Nang People's Committee has just issued a decision approving the integrated component of assessing the development status in the 2011 - 2020 period, orientation and solutions for developing the finance - banking sector in the city in the 2021 - 2030 period, with a vision toward 2050.

The perspective of a business centre associated with the financial symbol of Da Nang. Photo: VNA

By the end of 2030, Da Nang aims to have at least 5 financial technology (FinTech) enterprises with revenue of over VND1 ,000 billion /year; the number of FinTech enterprises will reach 2 - 3 enterprises/1,000 people.

According to the above-mentioned decision, the viewpoint of Da Nang is to develop a financial market associated with the characteristics of a transitional economy, containing innovative elements, providing new activities in the financial sector on the digital economic platform and applying high technology.

Da Nang is deeply aware that the application of modern science and technology, innovation and creativity combined with the development of high-quality human resources are the main and key elements for its rapid and sustainable development, enhancing competitiveness, and narrowing the gap in the development level of Da Nang's finance and banking sector in comparison to major economic centers in the country and the region at large.

Da Nang aims to establish factors to promote the development of the financial system in the 2021 - 2030 period, striving to build Da Nang into a regional financial centre before 2050. The specific goal is that the city’s average growth rate in the 2021 - 2030 period will reach 8 - 8.5%/year; the credit growth in the 2021 - 2030 period will reach an average of 12-  13%/year; the ratio of outstanding credit/GRDP will be from 2.2 to 2.5 times.

Da Nang has gradually improved its position in financial and banking forums, striving to house branches and representative offices of at least 2 - 3 commercial banks in the top 100 largest banks in terms of total assets in Asia.

In addition, Da Nang strives for at least 80% of adults to use electronic payment services by 2030, with the proportion of cash in total means of payment below 30%. At the same time, the city expects to attract 1 - 2 world-class enterprises; 3 - 5 leading FinTech firms in Viet Nam; and form 1 - 3 startups in the FinTech field with a value of over US$1 million.

So as to develop the FinTech ecosystem, Da Nang is studying and proposing that the Vietnamese Government allow the application of a sandbox testing mechanism directly in the city, linked with a mechanism to support innovation and creativity to increase the attractiveness of domestic and foreign FinTech enterprises. Da Nang will establish FinTech innovation centres at the Da Nang Hi-tech and Software, concentrated IT parks.

The city will also continue to implement telecommunications and transmission targets in the Da Nang Digital Transformation Project by 2025, with a vision toward 2030, encourage technology corporations to invest in data centres to serve FinTech businesses with high security and guaranteed network security.

The city also encourages training institutions to promote in-depth training in financial technology, digital banking, e-commerce, IT management at both undergraduate and postgraduate levels; strengthen cooperation with financial and banking institutions to develop enrollment targets in line with market demands.

In addition, Da Nang will allocate land funds to form a number of business centres associated with the city’s financial symbol, creating an ecosystem providing international financial services under the supervision and management of a common management agency.

In the short term, the city will pilot the application of a number of specific and most preferential policies compared to the country’s general legal framework to immediately develop components of a regional financial centre, in order to promote the development of innovation in technology-based finance, develop green finance, allow financial institutions to perform services that the domestic market cannot perform due to lack of regulations.

Reporitng by VNA - Translating by A.THU