Vietnam’s Ambitious Plan to Become a Fintech Hub
Vietnam is strategically positioning itself to emerge as a significant player in the global financial sector, with a particular focus on developing international financial centers in Ho Chi Minh City (HCM City) and Da Nang. Permanent Deputy Prime Minister Nguyen Hoa Binh recently outlined five key tasks aimed at ensuring the successful establishment of these centers, emphasizing the importance of strategic planning and international collaboration.
One of the foremost steps in this ambitious plan is the modernization of Vietnam’s legal and regulatory frameworks. Mr. Binh stressed that creating transparent, open, and internationally aligned policies is crucial for developing robust financial centers. By aligning the legal system with global standards, Vietnam aims to foster a competitive and attractive environment for both domestic and international investors. This legal clarity will be instrumental in establishing a comprehensive international financial center in HCM City and a regional hub in Da Nang.
Mr. Binh also highlighted the necessity of cultivating a skilled workforce capable of meeting the demands of modern financial centers. This includes training experts in governance, operations, risk management, and dispute resolution. He called for the swift training of professionals and the opportunity for them to gain global practical experience abroad. This approach will ensure that Vietnam has the necessary talent pool to operate these financial centers efficiently, attracting both local and international stakeholders.
For these financial centers to thrive, robust infrastructure is essential. Ministries, sectors, and localities must focus on creating a comprehensive ecosystem that supports financial services. Mr. Binh pointed out the need for a strong emphasis on emerging technologies such as fintech and blockchain, which are integral to the future of the global financial system. By aligning the development of these centers with Vietnam’s technological and economic strengths, the country aims to enhance its competitiveness in the global financial market.
Mr. Binh called for greater international cooperation to accelerate the development of Vietnam’s financial centers. Engaging with global experts and investors will be crucial for attracting the necessary capital and knowledge to establish a world-class financial infrastructure. By leveraging international expertise, Vietnam can expedite the creation of its international financial hubs, which will significantly contribute to the country’s socio-economic growth.
Both HCM City and Da Nang offer unique strengths that will support the development of these financial centers. HCM City is already recognized as Vietnam’s primary fintech hub, housing more than 50% of the country’s fintech startups. The city’s skilled workforce and competitive labor costs further enhance its potential for innovation and the creation of a diverse range of financial products, making it an ideal location for the country’s international financial center.
In contrast, Da Nang is developing a multi-component ecosystem for its financial center, which will include international financial services, fintech and techfin platforms, and essential business services such as auditing, accounting, and legal consulting. With nearly 16 hectares of land allocated for mixed-use development, Da Nang is positioning itself as a future hotspot for financial and tech services, supported by strong infrastructure connectivity.
The financial centers will heavily rely on technology to drive innovation and efficiency. Phan Duc Trung, President of the Vietnam Blockchain Association, noted that these centers will align with Vietnam’s national agenda for technological advancements and digital transformation. The integration of blockchain, fintech, and cross-border transactions will reduce costs and expand global market access, ensuring that Vietnam remains competitive in the rapidly evolving financial sector.
Vietnam’s strategic vision for creating international financial centers in HCM City and Da Nang reflects the country’s ambition to establish itself as a leading fintech hub in Southeast Asia. With strong domestic capabilities, a focus on international collaboration, and a commitment to modernizing its legal and regulatory frameworks, Vietnam is well on its way to building a dynamic financial ecosystem that will fuel economic growth and innovation. As the country continues to develop its financial infrastructure and workforce, it is poised to make a significant impact on the global financial landscape.
