Building an international financial center on clear principles

Financial experts believe that the Draft Resolution will lay the foundation for the establishment of two international financial centers in Ho Chi Minh City and Da Nang - defined as geographical areas with clear boundaries, focusing on a diverse ecosystem of financial services and support. The goal is to enhance Vietnam's position in the global financial network, promote green finance, energy transition and innovation, and connect with major financial markets. The Government will issue a decree defining the location, area and priority industries, ensuring the center operates according to international standards.

The operating principles emphasized include efficiency, transparency, integrity, professionalism and the application of international standards. Members of the center – legal entities registered or recognized to operate – will enjoy special policies, from tax incentives to freedom of financial transactions. The State commits to protecting property rights, investment capital and legitimate interests, while ensuring the independence of the center. The center's management and supervision agency is organized in a streamlined, independent manner, responsible for monitoring risks, inspecting and handling violations, and complying with Vietnamese law and international practices. The International Arbitration Center under the Center will provide dispute resolution services, creating a favorable legal environment for investors.

It is known that the Resolution is a pilot for 10 years, from 2025, with an assessment report submitted to the National Assembly before its expiration to decide whether to extend, amend or terminate it. Approved projects will continue to enjoy incentives until their end, ensuring investors' rights. The use of English as the official language in transactions and legal documents demonstrates deep integration, although it requires careful preparation in terms of capacity and infrastructure.

Driving force for investment attraction and development

Financial experts also said that the draft Resolution needs to highlight specific policies to create an attractive investment environment. Regarding taxes, priority projects at the center are expected to enjoy a corporate income tax rate of 10% for 30 years, a tax exemption for up to 4 years, and a 50% reduction for the next 9 years. Other projects will be subject to a tax rate of 15% for 15 years, with corresponding exemptions and reductions. In particular, managers, experts, and scientists at the Center will be exempt from personal income tax until 2035, a strong incentive to attract domestic and foreign talent.

In the field of foreign exchange, members of the Center are allowed to convert foreign currencies and mobilize capital from abroad according to regulations. Transactions within the Center can use foreign currencies to create maximum flexibility. In terms of banking, the “sandbox” mechanism allows testing of new business models and financial technologies under special supervision, encouraging Fintech and innovative startups, with financial support from the local budget.

Regarding land, priority projects are allocated land or leased for a maximum term of 70 years, with clean land funds. Strategic investors - legal entities with financial capacity, reputation and long-term commitment - are given priority to implement large infrastructure projects, exempt from bidding and enjoy superior policies. Technical and social infrastructure is invested synchronously, with Ho Chi Minh City and Da Nang retaining all domestic revenue for 10 years and increasing budget deficit to meet demand. PPP projects are applied with a state capital ratio of up to 70%, with a flexible revenue sharing mechanism, attracting private investors.

Regarding human resources, foreigners working at the Center are exempt from work permits if they meet professional standards, enjoy multiple visas of up to 5 years or temporary residence cards of 10 years. Large investors and senior experts can be granted permanent residence cards. Workers are free to negotiate salaries, with the basic salary for managers being 3 times higher than the general regulations. The State supports human resource training from vocational to university level, ensuring that it meets international standards. Local authorities allocate land and budget to build housing areas for workers, creating favorable living conditions.

The Center is managed and supervised based on risk, in compliance with regulations on anti-money laundering and terrorist financing. Center members must fulfill tax obligations, financial reporting and auditing according to international standards. These regulations not only create a favorable investment environment but also ensure national interests and prevent financial risks.

Financial experts believe that the draft Resolution on International Financial Markets is a bold move, demonstrating the aspiration to make Vietnam a destination for capital, technology and talent. If implemented effectively, Ho Chi Minh City and Da Nang will continue to be symbols of integration and sustainable development, opening a new era for the Vietnamese economy.

Source: https://thoibaonganhang.vn/trung-tam-tai-chinh-quoc-te-dua-viet-nam-hoi-nhap-toan-cau-162749.html