UK stands ready to help Vietnam build international financial hub
This initiative is particularly focused on the cities of Da Nang and Ho Chi Minh City, which are poised to become key players in the Southeast Asian financial landscape. The collaboration encompasses various sectors, including finance, technology and education, aiming to enhance Vietnam's capabilities in these areas.
The relationship between the UK and Vietnam has evolved dramatically over recent years.
The UK is recognised as the second-largest exporter of financial services globally, with exports reaching 88.7 billion GBP (nearly 114.6 billion USD) in 2022. London serves as a global financial centre, hosting 170 banks and a multitude of fintech companies.
A view of HCM City's District 2 with Hanoi Highway and Metro Line 1 Ben Thanh - Suoi Tien. District 2 is undergoing development to emerge as a financial hub. (Photo: VNA) |
This backdrop provides a solid foundation for collaboration as Vietnam seeks to develop its own financial sector.
In October 2023, the government established a Steering Committee to develop the Regional and International Financial Centre Project, which is led by Prime Minister Pham Minh Chinh. The project aims to position Da Nang as a regional financial centre and HCM City as an international financial hub.
Meanwhile, Da Nang has set ambitious goals to become a leading economic centre in Southeast Asia by 2030. The city aims to focus on two primary sectors: semiconductors and artificial intelligence (AI), alongside developing its international financial hub.
This vision is reinforced by the National Assembly’s Resolution No. 136/2024/QH15, which outlines specific policies to attract strategic investors and enhance financial management practices within the city.
Ho Ky Minh, Vice Chairman of the Da Nang People's Committee, stressed the need for the UK’s support in drafting legal frameworks that would facilitate the establishment of this financial centre.
At a meeting with Alexandra Smith, the newly appointed British Consul General in HCM City, in late October, Minh expressed his hope for collaboration with UK consular representatives to promote Da Nang as an attractive investment destination.
"In the near future, as authorities at all levels come to a consensus on the implementation of international financial centres in HCM City and Da Nang, we eagerly anticipate the support of the British Consulate General in HCM City in formulating the National Assembly's resolution on related legal issues," Minh said.
Meanwhile, Alexandra said that the UK was eager to actively collaborate and assist Da Nang in advancing emerging areas such as AI, digital transformation and establishing an international financial hub.
In September, Michael Mainelli, the Lord Mayor of London, who has a financial background, made a historic visit to Vietnam, the first Lord Mayor of the City of London to visit the country in the past decade, underscoring the UK's commitment to supporting Vietnam’s ambitions in establishing an international financial hub.
During this visit, he engaged with key Vietnamese officials and stakeholders to share insights and strategies for building a robust financial infrastructure.
The Mayor also looked forward to the exciting upcoming collaboration between Vietnam’s new international financial hub and the City of London's Financial District.
The partnership between the UK and Vietnam spans several key areas.
In terms of financial services, the UK's expertise can be invaluable for Vietnam as it seeks to modernise its financial systems.
The UK's experience in regulatory frameworks and market operations can provide crucial guidance for Vietnamese policymakers. Initiatives may include capacity-building training programmes for Vietnamese professionals in finance and investment management, as well as assistance in developing legal structures that support foreign investment and ensure market stability.
Technology integration into finance is vital for creating a competitive international hub. The UK is home to numerous fintech companies that can share their knowledge with Vietnamese counterparts.
Potential collaborations could involve leveraging AI technologies to enhance service delivery in finance and supporting Vietnamese banks and financial institutions in adopting digital solutions to improve efficiency.
Infrastructure development is another critical area where UK assistance can play a significant role. Infrastructure is essential for establishing a successful financial hub, and the UK can aid Vietnam in developing projects such as transportation networks that enhance connectivity through investments in urban rail systems and airports.
Additionally, collaboration on smart city initiatives will promote sustainable urban development aligned with global standards.
As Vietnam aims for net-zero emissions by 2050, green finance will be central to its economic strategy. The UK's commitment to green initiatives can significantly benefit Vietnam’s transition towards sustainable practices.
This includes supporting projects that focus on offshore wind energy and developing green bonds and other financial instruments that promote environmental sustainability.
Opportunities for UK Businesses
UK businesses stand to gain significantly from engaging with Vietnam’s burgeoning economy. As trade relations continue to strengthen, evidenced by bilateral trade doubling from 3 billion GBP to 6 billion GBP over the past decade, opportunities abound across various sectors.
Companies like Standard Chartered have already expressed enthusiasm about contributing to this partnership by facilitating investments and sharing expertise in areas such as green finance and digital innovation.
Furthermore, with the UK's impending accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), there will be enhanced access for UK services in Vietnam, fostering greater collaboration.
See also
HDBank wins three awards at Vietnam Listed Company Awards 2024
10:53 | 21/11/2024 Finance-Banking
VIB, Flywire partner to streamline cross-border payments for students from Vietnam
16:46 | 18/11/2024 Finance-Banking
Vietcombank issues 2 trillion VND worth of green bonds for first time
18:55 | 16/11/2024 Finance-Banking
See more news
S&P affirms Techcombank’s BB- rating
10:10 | 11/11/2024 Finance-Banking
Tax sector fulfils nearly 95% of state budget collection target
15:38 | 09/11/2024 Finance-Banking
Việt Nam's stock market moves closer to emerging market status amid key policy changes
18:05 | 06/11/2024 Stock Market
Krungsri proposes accelerating purchase of 50% of SHBFinance’s charter capital
15:46 | 05/11/2024 Finance-Banking
Finance ministry proposes two price management scenarios for year-end
10:11 | 04/11/2024 Finance-Banking
Banking sector prioritises support for import-export firms
16:35 | 02/11/2024 Finance-Banking
Smart Banking 2024 workshop and exhibition held
15:32 | 31/10/2024 Finance-Banking
Interest rates expected to decrease by 0.7 percentage points next year
09:14 | 29/10/2024 Finance-Banking
Agribank named in Top 10 Vietnam Excellent Brands 2024
17:52 | 26/10/2024 Finance-Banking
Banks show positive results during third quarter
15:36 | 25/10/2024 Finance-Banking
A series of scientific seminars on influenza prevention
15:15 | 22/11/2024 Society
Prudential applies AI to streamline claims processing
15:05 | 22/11/2024 Companies
VN's food processing industry struggles to improve quality and value chain integration
11:36 | 22/11/2024 Industry
Generali Vietnam 13-year journey to build “The hundred points of trust”
11:30 | 22/11/2024 Companies
PJICO: 30 years of development
11:19 | 22/11/2024 Vietnamese Brands
Multimedia
Strengthening Vietnam-Cambodia friendship and cooperation
09:00 | 22/11/2024 Infographic
Vietnam - Malaysia Strategic Partnership
10:54 | 21/11/2024 Infographic
Vietnam, Dominican Republic strengthening cooperation
08:45 | 20/11/2024 Infographic
Vietnam - Brazil strategic partnership
10:26 | 19/11/2024 Infographic
Nhon - Hanoi Station elevated urban railway comes into operation
09:04 | 18/11/2024 Infographic
New decree on using telecommunications accounts for payment proposed
09:29 | 22/11/2024 Policy
Parliament approves amendments to pharmacy law
08:54 | 22/11/2024 Policy
VAT tax reduction should continue until mid-2025: Ministry
17:15 | 21/11/2024 Policy
NA deputies scrutinise investment policy for North-South high-speed railway project
08:54 | 21/11/2024 Policy
VN's food processing industry struggles to improve quality and value chain integration
11:36 | 22/11/2024 Industry
Tra fish sector aiming for production, processing greening for sustainable development
15:38 | 20/11/2024 Industry
Solutions discussed to ensure coal supply for electricity generation in 2025
16:24 | 19/11/2024 Energy
Garment industry targets 47-48 billion USD in export turnover next year
16:16 | 19/11/2024 Industry
Workshop seeks ways to attract Japan’s green investment to Vietnam
09:43 | 20/11/2024 Investment
Government approves investment policy to build Cam Lien Industrial Park in Quang Binh
16:57 | 18/11/2024 Investment
Disbursement of public investment must be accelerated: Deputy PM
12:17 | 17/11/2024 Investment
LG plans to pour further US$1 billion investment into Vietnam
10:42 | 16/11/2024 Investment
HDBank wins three awards at Vietnam Listed Company Awards 2024
10:53 | 21/11/2024 Finance-Banking
VIB, Flywire partner to streamline cross-border payments for students from Vietnam
16:46 | 18/11/2024 Finance-Banking
Vietcombank issues 2 trillion VND worth of green bonds for first time
18:55 | 16/11/2024 Finance-Banking
UK stands ready to help Vietnam build international financial hub
17:13 | 13/11/2024 Finance-Banking
Significant progress in fisheries' environmental protection but challenges remain
09:35 | 22/11/2024 Environment
Hà Nội prepares for temperature drop as cold front approaches
16:56 | 21/11/2024 Environment
Hundreds of damaged irrigation reservoirs need repairing
09:02 | 20/11/2024 Environment
Greening e-commerce crucial for sustainable development
10:47 | 18/11/2024 Environment
Việt Nam and Korean NIPA strengthen tech cooperation
10:42 | 22/11/2024 Science - Technology
Cyberattack risks surge with AI advancements
10:39 | 22/11/2024 Science - Technology
People, community at heart of digital transformation: Deputy PM
09:26 | 21/11/2024 Science - Technology
AI is core technology of 4th Industrial Revolution: Minister
11:19 | 20/11/2024 Science - Technology
A series of scientific seminars on influenza prevention
15:15 | 22/11/2024 Society
Insurance Association of Vietnam: 25-year journey of growth
10:49 | 22/11/2024 Society
MoIT supports insurance companies in consumer right protection
10:07 | 22/11/2024 Society
Việt Nam-UK Institute plans for an international university
09:14 | 21/11/2024 Society
PJICO: 30 years of development
11:19 | 22/11/2024 Vietnamese Brands
VN takes part in food and beverage fair in Chicago
09:45 | 20/11/2024 Vietnamese Brands
Hòa Bình honey awaits reactions from UK
10:41 | 19/11/2024 Vietnamese Brands
Post-Typhoon Yagi trade networking event starts in Hải Dương
10:04 | 19/11/2024 Vietnamese Brands
Cultural activities celebrate Việt Nam Heritage Day
10:06 | 22/11/2024 Culture
Bac Ninh Province: Dong Ho folk painting needs urgent safeguarding
15:04 | 20/11/2024 Culture
Vietnamese designers tell stories of culture at Fashion Week
10:14 | 20/11/2024 Culture
Creative City promotes socio-economic development, says expert
09:59 | 20/11/2024 Lifestyle
Golden time for community-based tourism development
10:38 | 22/11/2024 Tourism
Christmas Festival to entertain visitors to Đà Nẵng
09:53 | 22/11/2024 Tourism
How trekking the mountains lifted me up and above ... the clouds: conquering Lùng Cúng
09:45 | 22/11/2024 Tourism
Blooming buckwheat flowers on Ha Giang roads
14:54 | 21/11/2024 Tourism