ASEAN countries promote the construction of financial centers and compete for regional discourse power

Vietnam is advancing its dream of building an international financial center. According to Nikkei Asia Review, there are five planned artificial islands in the Vietnamese tourist destination of Da Nang, inspired by Dubai's Palm Island. Vietnam plans to jointly develop Danang and Ho Chi Minh City into international financial centers, forming a strategic pattern of one north and one south.

According to the Lexology website in the UK, Ho Chi Minh City, as Vietnam's economic engine, will serve as a comprehensive financial center, focusing on capital markets, asset and fund management, insurance, banking, professional commodity trading, and more. Da Nang's positioning is to develop green finance, financing for startups and small and medium-sized enterprises, offshore financial services for non residents, and cross-border trade related to free trade zones, high-tech parks, and open economic zones. Da Nang will also pilot digital assets, cryptocurrencies, and advanced payment systems under a controlled regulatory framework.

This clear division aims to avoid functional overlap while promoting synergies. The two cities will work together to build a vibrant integrated financial architecture that aligns with Vietnam's global development vision.

According to Nikkei Asia Review, the purpose of Vietnam's construction of an international financial center is to attract a large amount of foreign investment and provide funding for achieving double-digit growth targets. Ho Chi Minh City ranks 95th among 120 global financial centers. Vietnam's goal is to elevate the global ranking of twin city financial centers to 75th place by 2035 and 20th place by 2045.

According to the Vietnam News Agency, the construction of an international financial center is part of Vietnam's efforts to position itself as a regional financial center on par with Singapore and Hong Kong, China. However, discussions on creating an international financial center in Vietnam have been ongoing for over a decade, but early efforts have always faced challenges such as regulatory ambiguity and regional competition, resulting in limited actual progress. Ho Chi Minh City has the largest stock market in the country, the Ho Chi Minh Stock Exchange, but foreign participation is still restricted due to ownership restrictions and underdeveloped capital markets.

Vietnamese officials hope that a financial center with clearer rules and incentives for foreign investors will help attract global banks, funds, and insurance companies.