Andy Khoo: ”Financial center will be a superior advantage of Da Nang”

At the International Financial Center Development Conference in Vietnam, Mr. Andy Khoo - General Director of Terne Holdings Group said that the Da Nang Financial Center can contribute an additional 3-5 billion USD annually to Vietnam’s GDP.

Advantages of Da Nang

According to Mr. Andy Khoo, Da Nang possesses numerous outstanding strengths for establishing a Financial Center.

First is geographical balance. Located in central Vietnam, the Da Nang Financial Center ensures nationwide financial accessibility and reduces overreliance on a single financial hub.

Next is specialized strength. Unlike the Financial Center in Ho Chi Minh City, the Da Nang Financial Center can focus on green finance, facilitate trade, and promote fintech innovation, aligning with global market trends.

Third is collaboration between centers. The Da Nang Financial Center serves as an innovation laboratory, testing new financial technologies and integrating them into the already developed ecosystem of Ho Chi Minh City.

The city of Da Nang possesses numerous advantages for establishing a Financial Center.

According to Mr. Andy Khoo, to position Da Nang as the next Financial Center of Southeast Asia, the city should focus on three strategic pillars that align with its unique strengths and opportunities: Green Finance, FinTech Innovation, and Trade Finance.

Regarding Green Finance, Vietnam has committed to achieving net-zero emissions, and the ASEAN green finance market is expected to reach USD 1 trillion by 2030, presenting an extraordinary opportunity. Da Nang Financial Center could take the lead in this area by issuing green bonds, facilitating carbon credit trading, and developing financial products tailored for sustainability-focused investors.

In terms of FinTech innovation, Da Nang could serve as a sandbox for startups in areas such as Blockchain, Digital Payments, and next-generation AI-based financial solutions (Gen AI).

Thirdly, Trade Finance benefits from Da Nang’s strategic location near major trade routes under the Regional Comprehensive Economic Partnership (RCEP) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Combined with major ports like Tien Sa and Lien Chieu, the city naturally becomes a hub for trade finance.

Additionally, Dr. Andreas Baumgartner EMBS from the Metis Institute emphasizes that successful international financial centers rely on five core factors: clear positioning and a specific value proposition; a strong, transparent, and reliable governance and legal environment; an attractive physical infrastructure; a dynamic community; and perseverance and excellence in execution.

Da Nang City has signed several cooperation agreements to develop the Financial Center.

According to Dr. Andreas Baumgartner EMBS, successful International Financial Centers provide a unique value to the market. No center becomes successful simply by being labeled an “International Financial Center.”

When Vietnam establishes not only one but two International Financial Centers, in both Da Nang and Ho Chi Minh City, clearly distinguishing these centers is very important. Each center needs a specific and clear value proposition to avoid confusion or competition between them.

In addition, successful International Financial Centers require a strong, transparent, and reliable governance and legal environment.

Furthermore, a quality International Financial Center should offer an attractive physical environment. The physical environment is the first “business card” noticed, and it must convey a clear message. Beyond creating business opportunities, the overall environment should attract talent, appealing not only through career opportunities but also through the lifestyle the center offers.

Ready to Establish the Financial Center

To serve the establishment of the Financial Center complex, Da Nang City has planned a 6.17-hectare land area with top connectivity and infrastructure in Vietnam to design office functions, provide resort, conference, entertainment, and utility services. An additional 9.7 hectares has been allocated to develop fintech services adjacent to Software Park No. 2.

In the long term, based on development needs, Da Nang will study creating a new 62-hectare land fund to form a full-scale complex, increasing the attractiveness for financial infrastructure development and attracting other investors to operate in the Da Nang International Financial Center.

Regarding the overall model, Da Nang City’s Financial Center proposes developing a multi-component ecosystem, focusing on three main service groups.

First, providing international financial services such as payment services, international trade, risk management and foreign exchange transactions, and green finance services. This includes financial services closely linked to the development of the Da Nang Free Trade Zone.

Second, FinTech and TechFin services, including software and platform solutions for payment services, digital asset transactions, innovative financial solutions based on artificial intelligence, big data, cloud computing, blockchain, etc. It also offers incubation space for startups and FinTech companies seeking growth, innovation, and internationalization.

Third, investment support, business development, and utility services such as auditing, accounting, legal services, tax consulting, customs, as well as leisure, conference, casino services, real estate rental and valuation, and related assets, creating a diverse ecosystem to develop Da Nang as a global financial and entertainment center.

At the workshop on developing the International Financial Center in Vietnam, Da Nang Party Secretary Nguyen Van Quang expressed the city’s desire to continue receiving expert advice and commitments from investors.

Secretary Nguyen Van Quang emphasized that there is no hierarchical distinction between the financial centers in Ho Chi Minh City and Da Nang.

“The concept of international finance and regional finance is relative; there is no ranking between the Ho Chi Minh City and Da Nang financial centers. The two centers are independent, with functional roles that interact with each other. The city hopes to receive advice, especially investment commitments, from investors investing in the Financial Center in Vietnam,” said Mr. Nguyen Van Quang.