Logo of Phnom Penh Post newspaper Phnom Penh Post - Ho Chi Minh City plans to be global financial hub

Ho Chi Minh City plans to be global financial hub

Content image - Phnom Penh Post
Ho Chi Minh City’s downtown at night. Authorities want the city to become an international financial hub. MANH LINH/VIETNAM NEWS AGENCY/VIET NAM NEWS

Ho Chi Minh City plans to be global financial hub

Ho Chi Minh City has committed to develop a detailed plan to turn the city into a regional and international financial hub after years of delay in carrying out the ambitious goal.

Nguyen Thien Nhan, secretary of the city’s Party Committee, said: “There’s no better time to do it than now.”

As an international financial hub, Ho Chi Minh City, which contributes 45 per cent to Vietnam’s gross domestic product, would enhance socio-economic growth locally, nationally and regionally, he added.

Speaking at a meeting last week, Nhan said a feasibility report on the plan would be submitted to the People’s Council in October.

By June next year, the city is expected to start building a financial centre complex in the Thu Thiem new urban area in District 2.

The city will also report to Prime Minister Nguyen Xuan Phuc by the end of the year on a special incentive policy for the project.

Vu Thanh Tu Anh, of Fulbright University Vietnam, said the city must have a complete financial ecosystem that meets international standards.

“The international financial centre should conduct cross-border financial transactions and have diverse financial products,” he noted.

Anh, who is a member of the prime minister’s economic advisory group, said Ho Chi Minh City’s location is ideal for an international financial hub.

“The city accounts for only 9.36 per cent of the country’s population and 0.6 per cent of the country’s total area, but it contributes 14 per cent to the country’s export value and 27 per cent to state revenue.”

It also accounts for 14.1 per cent of the country’s total foreign investment, said Anh, adding that the city, however, is still not listed among global financial centres.

Economist Tran Du Lich said Ho Chi Minh City should receive assistance from the government and should not be expected to shoulder the burden alone.

Nguyen Thanh Phong, chairman of the city’s People’s Committee, said a long-term strategy was needed to attract major investors, enterprises and financial institutions to develop the plan.

To develop the plan, the city recently assigned the Ho Chi Minh City Financial Investment Company to work with Fulbright University Vietnam to conduct a survey of major financial centres around the world.

Phong said new policies were seriously needed, including measures to address the lack of high-skilled human resources.

In 2001, the city included the finance sector as one of the city’s nine key services. The sector has had an annual growth rate of 8.8 per cent and accounts for 5.7 per cent of the city’s gross regional domestic product.

The city recently solicited investment to build the 4.9 trillion dong ($210 million) financial, banking and trade centre, which is expected to cover 14,500sqm, according to the Department of Planning and Investment. VIET NAM NEWS

MOST VIEWED

  • Cambodia armed with money laundering laws

    Money laundering will now carry a penalty of up to five years in prison while those convicted of financing terrorists will be jailed for up to 20 years, according to new laws promulgated by King Norodom Sihamoni and seen by The Post on Thursday. Comprising nine

  • Schools to be reopened in ‘three stages’

    With guidance from Prime Minister Hun Sen, the Ministry of Education, Youth and Sport, is in the process of reopening schools in three stages. But no timeline has been set, ministry spokesperson Ros Soveacha said on Thursday. Soveacha said the first stage will be to

  • Thai border crossings eased

    The Cambodian Embassy in Thailand said in an announcement on Wednesday that Thailand’s government has allowed certain passengers from several countries to enter its borders. The visitors must go back to their country immediately after their duties in Thailand are fulfilled, the embassy said.

  • Gov’t says tourism recovers slightly despite pandemic

    The Ministry of Tourism and the Phnom Penh municipal administration have recognised 33 tourism businesses in the capital which have consistently implemented safety measures for tourists and adhered to the code of conduct issued by the ministry. Recently, the ministry announced that tourism businesses had to

  • Mull ASEAN border opening, PM urges

    Prime Minister Hun Sen has requested that ASEAN launch a scenario for gradually reopening cross-border travel and trade between countries in the region. He said ASEAN has had more success combating Covid-19 compared to other regions. The prime minister’s request was made at the

  • Ministry reports 11 new Covid-19 cases, reiterates vigilance

    Minister of Health Mam Bun Heng has urged people to continue practising virus prevention techniques after 11 people tested positive for Covid-19 within two days after arriving in the Kingdom. Speaking on Sunday, Bun Heng stressed the importance of washing hands, wearing masks or scarves when

  • Koh Rong land ‘belongs to firm’

    Preah Sihanouk Provincial Administration spokesperson Kheang Phearum told The Post on Sunday that the 35ha being bulldozed by Royal Group Co Ltd in Koh Rong belongs to it after it was leased to it for 99 years by the government in 2008. Phearum said the land does

  • Nine on Indonesia flight Covid-19 positive

    The Ministry of Health on Saturday confirmed nine more imported cases of Covid-19. The nine ‒ eight Cambodians and one Indonesian, aged 22 to 26 ‒ arrived in Cambodia on Thursday via a direct flight from Indonesia and are receiving treatment at the Khmer-Soviet Friendship Hostipal in Phnom Penh.

  • Kingdom’s financial sector healthy

    Cambodia's financial sector remains on a sustainable growth path despite the Covid-19 pandemic squeezing crucial industries, National Bank of Cambodia (NBC) governor Chea Chanto said. Tourism, garments and footwear have borne the brunt of the Covid-19 impact, he said, whereas the financial and agriculture sectors

  • Vietnam told to remove border tents

    Kandal provincial governor Kong Sophoan has ordered local authorities to prohibit the construction of buildings in areas bordering Cambodia and to report any irregularities immediately. Recently, Vietnamese officials removed another seven tents from the border area with Cambodia. His remarks were made on Wednesday afternoon