Da Nang builds a financial center with international competitiveness

28 OUT — Launching the Advisory Council of the Vietnam International Finance Center in Da Nang city. Photo: NGOC PHU

"Golden link " of the East -West economic corridor

According to Deputy Minister Nguyen Thi Bich Ngoc, Da Nang has a special geographical position as it is located on the East-West economic corridor, and also owns a deep-water seaport and a modern international airport. In particular, more than a quarter of global sea trade passes through this area, showing the potential to become a financial center supporting logistics, risk insurance and cross-border trade.

“This is not only a geographical advantage, but also an economic logic for the finance - logistics - insurance - risk ecosystem. When goods circulate strongly, capital flows, financial services, and insurance will operate like a natural flow,” Ms. Ngoc emphasized.

According to Ms. Ngoc, the National Assembly has issued a Resolution on the development of the Vietnam International Financial Center, establishing the model of “one center, two destinations”. Accordingly, Ho Chi Minh City will be a large-scale financial hub, while Da Nang will play a specialized role; the core spirit here is to divide roles, resonate, not copy, to compete.

“Ho Chi Minh City will be a broad and deep capital center, developing strongly in the stock market, bonds, banking, fund management, and listing services. Meanwhile, Da Nang will focus on developing financial services related to logistics, maritime, free trade, and industrial and agricultural supply chains of the Central and Central Highlands regions,” Ms. Ngoc analyzed.

Connecting the Financial Center with the Da Nang Free Trade Zone

A key point in the strategy to develop the International Financial Center in Da Nang is to closely link with the Da Nang Free Trade Zone.

28 cooperation — Presenting cooperation agreements between Da Nang city and investors. Photo: NGOC PHU

Deputy Minister of Finance Nguyen Thi Bich Ngoc said that the Free Trade Zone is not simply an industrial park but a special institutional model, with a specialized management system, a “one-stop” operation of customs, bonded warehouses and a separate risk control mechanism.

The goal is to facilitate the rapid and transparent circulation of goods, thereby creating a natural flow for financial services such as trade finance, marine insurance, and import-export credit.

“When goods come in and out quickly and transparently, capital flows, insurance, and banking will automatically appear. From there, a full support service ecosystem will be formed: from distribution centers, high technology to banking and insurance,” said Ms. Ngoc.

Deputy Minister Nguyen Thi Bich Ngoc proposed four strategic pillars for the Da Nang Financial Center. The first is maritime finance - logistics - insurance. Accordingly, strongly develop trade finance services, logistics credit, hull and cargo insurance, reinsurance and supply chain risk prevention.

Second, finance is linked to the production - agriculture - resources chain. Support regenerative trade transactions from agriculture - aquaculture, metals, ores, linking the supply chain of the Central - Central Highlands region.

Third, green and sustainable finance. By developing green bonds, carbon credits, and climate risk insurance for agriculture, we can take advantage of the global sustainable finance trend.

Fourth, cross-border financial services. Develop electronic identification, electronic bills of lading, green certificates, cross-border payments according to international standards, especially along the East-West corridor.

These four pillars will create an economic flow including: goods - data - capital - insurance, linking into a closed and efficient financial service chain.

To increase the “pull” for the International Financial Center in Da Nang, it is necessary to view the city in connection with the economic dynamic cluster of the Central region. This area is emerging with many industrial and service “satellites” such as: Chu Lai - Truong Hai Complex; Dung Quat Heavy Industrial Park; coastal economic zones; aquaculture centers; export processing and manufacturing clusters.

28 NGOC — Deputy Minister of Finance Nguyen Thi Bich Ngoc speaks. Photo: NGOC PHU

The urban and administrative spatial planning in Da Nang is being expanded, creating a large space for specialized financial development. Currently, Da Nang is preparing to submit to the National Assembly a separate set of policies for the Free Trade Zone.

However, the Deputy Minister said that this set of policies does not follow the direction of mass incentives, but needs to be approached in depth, selectively and transparently. That is, focusing on clean land planning, long-term stability; transparent investment processes; incentive framework linked to priority product portfolio; flexible human resource policies to attract financial experts; clear "horizontal - vertical" coordination mechanism between ministries, branches and localities.

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“Incentives should not be spread out, but must be concentrated, in the right place, in the right industry. Only then can Da Nang build a financial center with its own identity, sustainability and international competitiveness.”
Deputy Minister of Finance Nguyen Thi Bich Ngoc

Recruiting high quality personnel

Concluding the plenary session, Alternate member of the Party Central Committee, Deputy Secretary of the City Party Committee, Chairman of the City People's Committee Luong Nguyen Minh Triet said that from the presentations of scholars, there is a more comprehensive and multi-dimensional perspective on the process of building, cooperating and developing an international financial center in Vietnam.

According to the Chairman of the City People's Committee, we have a high consensus on the importance and urgency of building an international financial center in Vietnam. This is not only an economic development goal but also a strategic step to promote innovation, connecting Vietnam and global initiatives.

28 A TRIET — Chairman of the City People's Committee Luong Nguyen Minh Triet delivered a concluding speech at the plenary session. Photo: NGOC PHU

The success of an international financial centre depends not only on physical infrastructure but also on a transparent legal framework, a transparent business environment and an efficient administrative system.

For Da Nang, the city is proactively researching and coordinating with central ministries and branches to form a financial mechanism to recruit personnel from financial institutions in Europe, Singapore, Dubai, the United States, a high-quality workforce with extensive experience in the international financial market in operations.

At the same time, the city will work with partners to invite prestigious universities and research institutes to establish branches in Da Nang with the aim of promoting training, capacity building and innovation.

Along with that, the city has also proactively contacted and negotiated to determine the personnel plan of foreign experts with capacity and experience to take on the positions of operations director at the executive agency and director of the dispute resolution agency after its establishment.

Source: https://baodanang.vn/da-nang-xay-dung-trung-tam-tai-chinh-co-kha-nang-canh-tranh-quoc-te-3300569.html