Việt Nam Eyes Global Financial Hub | Vietnam Today

Vietnam is setting its sights on becoming a new node in global finance, with plans to develop international financial centers in both Da Nang and Ho Chi Minh City. Now positioned as a strategic breakthrough, the initiative is expected to accelerate capital flows, drive innovation, and support the country's long-term development vision, following the success of the 14th National Party Congress and 16th National Assembly and People's Council elections. As Vietnam looks to reposition itself in the global financial landscape, the International Financial Center, or IFC, is being framed as more than just an economic project. It is a strategic lever to elevate Vietnam's role in the global capital flows, innovation, and high-value services. I think it's a great idea. I think it's the future for Vietnam, and it should be, having an IFC here and also in Ho Chi Minh City. I like the fact that they are both diverse in nature, that they're not focusing all on the same thing, because that wouldn't make any sense. I think our end is more green technologies and investments in certain areas, and I think that's a good strategy. But ambition alone is not enough. As policymakers move forward, one of the most complex challenges lies in reconciling new financial mechanisms with existing legal and regulatory frameworks. The hardest question I think Vietnam and the IFC have to deal with is, how are they going to reconcile the existing frameworks that exist outside of those IFCs with the IFCs? Because they're not in a different country. They're not really in a different jurisdiction. The employees can move in and out every day, and how does a business that's 100 meters away from the IFC have different rights than someone within the IFC? I think these are the problems to solve. For Vietnam, entering the global financial arena comes with both constraints and opportunities. As a latecomer, the country faces intense competition from established hubs in the region. Yet, this timing may also be its greatest advantage, allowing Vietnam to leapfrog legacy systems and move directly towards a more modern, flexible, and innovation-driven financial ecosystem. Our approach is not to compete head-on. Instead, we aim to focus on market segments and develop them strategically. Our advantage is that we are building from scratch, allowing us to leapfrog straight to a modern framework without having to go through the conventional stages of development. What I hope will happen is that even the areas outside the IFC will change, that those areas outside will become more open, more productive, enable faster movement of goods, people, data, etc. I think trying to shift their ideas of looking at Vietnam in terms of a financial center might be challenging. It's just that more promotion needs to be done. And I think the more we deregulate, the more we make it faster, the faster it will come. The IFC is not just a destination, but a catalyst, one that could accelerate reforms in governance, data flows, and market accessibility, in line with Vietnam's push for high-quality growth in the new development phase. As Vietnam accelerates its economic transformation, the development of international financial centers is emerging as a key strategic move. In Ho Chi Minh City, the IFC is envisioned not only as a gateway to global capital, but also as a platform to elevate the country's position in international financial markets. Our reporter sat down with Richard McClellan, CEO of the Vietnam International Financial Center, for deeper insights. Thank you so much, Mr. Richard McClellan, for participating in the interview today. It's my pleasure. Thank you for having me. IFC Ho Chi Minh City is designed as an ecosystem combining policy innovation, market institutions, and international participation. In your view, what are the most critical factors for turning this vision into a functioning and credible financial center? First and foremost, the International Financial Center is going to have to deliver on the promises that have been laid out in the various regulatory decrees and legislation. There have been many exciting incentives and benefits that are offered to global investors through the IFC, and it's going to take some time as we now move away from designing the regulation and into building the institutions. It's going to take some time to build those practices and capabilities. Implementing these decrees in an effective manner that can demonstrate to the world that Vietnam is ready for global capital, I think that's first and foremost in my mind. In order to do that, though, we're going to need to create an environment where global talent wants to come. We're going to need to be able to create these important linkages between the domestic Vietnamese economy and the global investors. Those will be pretty critical in this process. Alongside Ho Chi Minh City, Da Nang is also being discussed as part of Vietnam's broader financial and economic development landscape. How do you see the roles of Ho Chi Minh City and Da Nang complementing each other rather than competing in this emerging financial ecosystem? I think it's a very exciting combination, actually. If you look at it, of course, Ho Chi Minh City is the commercial center of Vietnam already today, and it will continue to be so. But what's exciting about adding the Da Nang dimension is that that's really where the innovation sandbox is going to take place. It's going to allow more experimentation, more digital, more forward-looking opportunities to emerge. If you have the innovation piece here and then you have the depth and the quality of the market here, those two things will interact with each other in a very positive way. Thank you so much, Mr. McClellan, for your valuable insights. My pleasure to be here. Thank you.