Da Nang aims to become a green finance hub and a centre for sustainable supply chain finance

The session was part of the roundtable “Positioning and Developing the International Financial Centre (IFC) in Da Nang: Opportunities for Attracting Transactions and Investment,” held on the morning of 6 November.

A green and innovation-driven financial centre

Speaking about the operating model of the IFC, Mr. Rich McClellan, a member of the Advisory Board for Viet Nam’s International Financial Centre, said that the Viet Nam IFC will be located in two cities – Ho Chi Minh City and Da Nang – under a unified governing and supervisory authority. In this structure, the IFC in Ho Chi Minh City will focus on capital markets and fund management, while Da Nang will be oriented towards green finance, Fintech and digital assets.
 

Explaining why Da Nang was chosen as one of the two IFC locations in Viet Nam, Mr. McClellan noted that the city has a strategic location, modern infrastructure, high quality of life and strong potential to attract high-tech human resources.

In the coming period, Da Nang needs to prioritise completing the legal framework, establishing a “one-stop, single-window” investment licensing mechanism, developing infrastructure, attracting strategic investors and building an international brand for the Da Nang IFC.

“Da Nang is an ideal place to develop a green and innovation-driven financial centre,” Mr. McClellan emphasised.

Sharing the same view, Mr. Jinchang Lai, an IFC expert, stressed that Da Nang has significant potential to develop into a specialised financial centre, particularly in the fields of trade finance and supply chain finance (SCF).

He suggested that Da Nang should position “Da Nang IFC” as a specialised financial services hub that attracts non-bank lenders, Fintech companies and third-party financial service providers. As SCF transaction volumes grow, other supporting service sectors will also expand in a “domino effect.”
 

“Da Nang can absolutely become an attractive destination for financial transactions and investment in the region if it succeeds in building a flexible, well-connected and practical financial ecosystem,” Mr. Jinchang Lai affirmed.

Highlighting the importance of third-party services in completing the financial ecosystem, he noted that Da Nang should regard these as an indispensable component in operating a modern IFC.

According to Mr. Lai, Da Nang has many advantages for developing such services: operating costs are lower than in Ho Chi Minh City, yet service providers can still serve clients nationwide. If investment is channelled in the right direction, Da Nang can develop its own supporting financial services industry, creating jobs and attracting more international financial institutions.

For Da Nang to truly become an IFC, developing professional third-party services is a prerequisite, helping make the financial market more sophisticated, transparent and sustainable.

A new global hub for sustainable supply chain finance

The development of an IFC must be seen as a long-term journey with a clear strategy, not merely a short-term objective. Therefore, Mr. Lin Hui, FCI’s Regional Director for Asia, proposed that Da Nang adopt global standards while building its own legal framework based on internationally tested rules.
 

According to Mr. Lin Hui, Da Nang should leverage existing resources and strengthen cooperation with international organisations such as FCI; implement specialised training programmes on trade finance and supply chain finance; develop a regulatory sandbox for innovation and digital commerce, especially in the Fintech sector; and encourage banks, Fintech companies and global investors to roll out new digitalisation solutions.

“Da Nang can position itself not just as a conventional financial centre, but as a new global hub for sustainable supply chain finance. FCI stands ready to accompany and support Da Nang on its journey to build an international financial centre, thereby contributing to the development of regional finance and trade,” Mr. Lin Hui said.

Meanwhile, Mr. Thomas Chen, Vice President of International Business at V-Team Group, underlined the role of trade finance in facilitating capital flows and enhancing the competitiveness of Vietnamese enterprises in the global trading environment.
 

Mr. Thomas Chen, Vice President of International Business at V-Team Group, speaks on “Market Development Approaches for Independent Third Parties Providing Ancillary Services to the Financial Sector”
 

According to Mr. Chen, “buy now, pay later” models are becoming increasingly common as importing businesses seek to receive goods before making payment, which generates substantial demand for working capital. Supply chain finance (SCF) is therefore a crucial tool that enables companies – especially small and medium-sized enterprises – to access funding without traditional collateral, leveraging the buyer’s creditworthiness to expand production and exports.

He added that supply chain finance not only benefits businesses but also helps banks better manage risk, control cash flows and diversify their portfolios by capturing data across the entire production–distribution chain.

If Da Nang succeeds in building an ecosystem of supporting financial services and a practical legal framework, it can become not only a financial centre of Viet Nam but also rise to become a new global hub for sustainable supply chain finance.