HANOI: Vietnam’s lawmakers approved a plan on Friday (Jun 27) to establish international financial centres in Ho Chi Minh City and Da Nang to attract investment and strengthen its global financial standing as economic uncertainties rise.
The centres will operate under unified management, with Ho Chi Minh City focusing on capital, banking, and currency markets, and Danang on sustainable and green finance, leveraging its strategic location near East-West economic corridors, the government said in a statement.
Finance Minister Nguyen Van Thang called the policies “innovative and competitive”, noting their alignment with international standards, the statement added.
A key feature will allow members of the centres to secure international financing and use foreign currency for transactions.
Vietnam’s foreign investment inflows rose 7.9 per cent to US$8.9 billion in the first five months of the year, while pledges surged 51.1 per cent to US$18.4 billion, the government said.
However, the United States has threatened to impose 46 per cent tariffs on Vietnamese exports unless concessions are made, which could slow the momentum.
Prime Minister Pham Minh Chinh said earlier this week that Vietnam expects to reach a trade deal with the United States within two weeks.
The financial centres will adopt international accounting and financial standards, including capital adequacy and liquidity ratios for both domestic and foreign-owned banks, the government added.
Vietnam remains a key manufacturing hub for global firms such as Samsung Electronics, Foxconn, Intel, Nike and Adidas.
Read the full article here
