Int’l financial center to assert Vietnam’s role, position globally

A recent seminar on enhancing the efficiency of financial resources for economic development in the new context - photo: VnEconomy

Enhancing the efficiency of public investment and establishing an international financial center are the proposals from experts and businesses to mobilize financial resources for economic development.

Financial, material and human resources are crucial for the country’s economic development, with financial resources considered as having a significant impact. At a recent seminar on enhancing the efficiency of financial resources for economic development in the new context, sponsored by the Central Economic Commission and Vietnam Economic Times, experts proposed to mobilize financial resources for economic development.

Associate Professor, Dr. Hoang Van Cuong, a member of the National Assembly’s Finance and Budget Committee, emphasized the need to increase public investment capital by improving budget revenue and reach sustainable sources of revenue. There is room to increase public investment capital, and land use taxes, for example, could be addressed for this purpose, he said.

It is necessary to further innovate and restructure public investment. This has been done well, as the value of public investment capital has increased and the number of public investment projects has decreased from more than 10,000 before 2016 to 5,000, Cuong said.

Cuong also emphasized the need of private investment development.

Johnathan Hanh Nguyen, Chairman of Imex Pan Pacific Group (IPPG), said it is necessary to attract resources from the private sector and promote public-private partnerships (PPP). PPP needs to be expanded to financial, venture capital fund, startup investment, energy, and technology projects, apart from infrastructure ones.

He proposed that the Government support private enterprises and economic groups in accessing international capital markets, assist businesses in issuing international bonds, and accelerate the establishment of international exchanges to facilitate access to large capital sources from foreign investors.

The Government should consider establishing and operating an international financial center to mobilize financial resources for national economic development.

The IPPG Chairman said an international center will enhance the efficiency of financial resource allocation. Vietnam already has a solid foundation with a developing banking system and financial market. However, concentrating financial facilities in a large-scale center will better connect domestic and international capital sources.

Additionally, it will help attract international financial institutions and high-quality foreign direct investment. This will not only bring abundant capital, but also promote the transfer of advanced technology and financial knowledge to the Vietnamese economy.

IPPG Chairman Johnathan Hanh Nguyen gives a speech at a recent seminar on enhancing the efficiency of financial resources for economic development in the new context - photo: VnEconomy

An international financial center will help Vietnam assert its role and position globally, provide the country with opportunities for international cooperation and deeper participation in international financial organizations. It will promote financial and trade cooperation with other countries, facilitating cross-border capital flows into Vietnam.

The proposal to establish an international financial center by IPPG has been welcomed by ministries and sectors, the IPPG Chairman said. However, there is still a lack of a clear overall and long-term strategy, related policies and development roadmap, he said. Investors want to see the Government’s commitment and a clear strategy as a sustainable plan, he added.

According to experts, mobilizing financial resources for national economic development requires consistent solutions for public investment, bond markets, stock markets, investment funds, and more. Above all, a transparent, fair business environment with effective control mechanisms is crucial to ensure efficient capital circulation, minimize risks for investors, and encourage private investment in national economic development.