In Decision No. 1287/QD-TTg dated November 2, 2023 approved by the Vietnamese Prime Minister on the Da Nang Master Plan for the 2021 - 2030 period, with a vision towards 2050 and Decision No. 376/QD-TTg dated May 4, 2024 approved by the Prime Minister on approving the Planning of the North Central and Central Coastal Regions for the 2021 - 2030 period, with a vision towards 2050, the regional financial centre is oriented as one of the three pillars in the new period of Da Nang’s economy.

Chairman of the Da Nang People's Committee Le Trung Chinh (right) and representatives of the Viet Nam Blockchain Association presented a memorandum of understanding at the workshop ‘Developing International Financial Centres in Viet Nam’ on January 16, 2025. Photo: M.LE

Many favourable conditions

As a coastal city with an important geopolitical and economic position, Da Nang is identified as the economic, political and cultural centre of Viet Nam’s central region, a strategic seaport city, one of the important gateways to the sea of the East-West Economic Corridor and is piloting the establishment of the first free trade zone in Viet Nam. Currently, the Da Nang port is the largest container seaport in the central region with Lien Chieu port planned as an international transit port, capable of receiving ships up to 18,000 TEU (200,000 DWT).

Da Nang also has favourable conditions for international traffic connections with the Da Nang International Airport located right in the city centre and meeting Skytrax's 5-star standards, directly connecting Da Nang with 35 cities in 11 countries and territories, including many global economic and financial centres in the Asian region with an average frequency of over 50 flights/day.

Thanks to its favourable natural conditions and infrastructure, Da Nang is a famous tourist city in the region, welcoming over 4 million international visitors every year. Till date, Da Nang has approved the planning of international marinas, enhancing traffic connections and experiences for businessmen and tourists of the high-spending class.

The city is also oriented to become a national innovation centre with many specific mechanisms and policies, associated with new and modern technology trends such as semiconductors, artificial intelligence (AI), blockchain and cloud computing.

Based on the above-mentioned potential and advantages, on November 15, 2024, the Politburo issued Conclusion Notice No. 47-TB/TW agreeing to the policy of establishing a regional financial centre in Da Nang.

Dr. Dang Dinh Duc, the Deputy Director of the Department of Finance, former Director of the Da Nang Institute for Socio-Economic Development, said that the Da Nang Financial Centre will be associated with innovation, green finance, financial technology, and commercial finance to resonate with the advantages of its important geopolitical and economic location.

This is an orientation consistent with the development practice and new opportunities from the formation of the national innovation centre and the Da Nang Free Trade Zone, promoting the conditions and advantages of Da Nang in particular, and Viet Nam in general, meeting the legitimate interests of organisations, investment funds, investors and international trade businesses when researching investment in Da Nang, opening up the prospect of making Da Nang an investment - trade - finance - technology gateway of the country and the region.

With regard to the general model, the Da Nang Financial Centre is expected to focus on three groups of services: international financial services such as payment services, international trade, risk management and foreign exchange transactions, green financial services, including financial services associated with the development of the Da Nang Free Trade Zone; financial technology (fintech) services such as providing software, application platforms for making payments, trading crypto assets, innovative solutions in the financial sector based on AI, big data, cloud computing and blockchain; investment support, business development and utility services such as auditing, accounting, legal services, tax consulting, customs and resort services.

Proactive solutions

Within just two months since the Politburo issued Notice No. 47-TB/TW, Da Nang has proactively coordinated with the Vietnamese Ministry of Planning and Investment and related ministries and agencies to contribute comments on the draft action plan on building a regional and international financial centres in Viet Nam.

On January 3, 2025, the Da Nang Party Committee issued Decision No. 13111-QD/TU on the establishment of the Steering Committee for the construction and development of the Da Nang Financial Centre (referred to as Steering Committee 47). As for its functions and tasks, the Steering Committee assists the Standing Committee of the Da Nang Party Committee and the Standing Committee of the Da Nang Party Committee in leading and directing the timely, comprehensive, complete and effective implementation of Conclusion Notice No. 47-TB/TW.

The city has reviewed and prepared the infrastructure for the construction of the financial centre, and is currently calling for strategic investors to build the infrastructure of the financial centre on an area of about 6 hectares in Son Tra District facing the sea. This location is of interest to many investors and is included in the Da Nang Master Plan approved by the Prime Minister in Decision No. 1287/QD-TTg.

In addition, the city is preparing to develop projects and training programmes, cooperate with international training institutions in training human resources to serve the regional financial centre in the city and develop a plan to send Da Nang officials to study at major international financial centres all over the world.

In particular, on January 16, 2025, the Da Nang People’s Committee coordinated with the Ministry of Planning and Investment to organise a workshop on ‘Developing an International Financial Centres in Viet Nam’, thereby introducing the policy and orientation for developing regional and international financial centres in Viet Nam, promoting the potential and favourable conditions of a financial centre in Viet Nam as well as consulting with management agencies, strategic investors, organizations, financial institutions, investment funds, consulting companies and domestic and foreign experts on specific and outstanding mechanisms and policies to develop regional and international financial centres in Viet Nam.

Within the framework of the workshop, representatives of Da Nang and international partners exchanged memorandums of understanding on cooperation: the Da Nang People’s Committee and Makara Capital Investment Fund (Singapore), Terne Holdings Group (Singapore); the Da Nang People's Committee and Viet Nam Blockchain Association; the University of Economics under the University of Da Nang and partners: TMC Academy (Singapore), Yuan Ze University (Taiwan, China) and the Institute of Chartered Accountants in England and Wales (ICAEW).

Mr. Andy Khoo, Managing Director of Terne Holdings (Singapore), proposed that, unlike the Ho Chi Minh City Financial Centre that focuses on capital markets, the Da Nang Financial Centre can specialize in green finance, trade facilitation and fintech innovation, in line with global market trends. For green finance, the Da Nang Financial Centre can take the lead in this area by issuing green bonds, facilitating carbon credit trading, and developing financial products specifically for investors interested in sustainability. With policies to encourage innovation, the Da Nang Financial Centre can attract global investors and financial technology companies, making Da Nang a regional fintech innovation hub. The Da Nang Financial Centre can meet new trade finance needs and facilitate seamless cross-border capital flows.

According to Deputy Minister of Finance Do Thanh Trung, the Da Nang Financial Centre is not only a symbol of Viet Nam's prosperity but also contributes positively to the stability and development of the global financial system. With the support of international partners, Da Nang needs to research and learn from international experiences in the process of construction and operation, mobilising investment resources and developing the financial centre. Da Nang should focus on allocating resources, preparing foundational conditions and creating favourable conditions for the development of the Financial Centre, especially infrastructure resources, including hard and soft infrastructure, digital infrastructure), human resources, institutions, business investment environment and living environment. It is also necessary to focus on mobilising, attracting strategic investors and financial institutions to invest in the financial centre.

Reporting by MINH LE – Translating by A.THU