Mr. Andy Khoo, CEO of Terne Holdings, believes that Da Nang Financial Center can differentiate itself and stand out from other global financial centers by focusing on green finance, trade finance and Fintech innovation.
On the afternoon of January 16, in Da Nang City, the workshop “Developing the International Financial Center in Vietnam” took place, attracting over 450 delegates, including experts, scientists, and domestic and international investors.
At the workshop, participants focused on discussing special mechanisms and policies to promote the development of Vietnam’s International Financial Center.
Additionally, the discussions emphasized organizational measures to ensure that the construction and operation of the financial center are carried out practically and efficiently, in compliance with current legal regulations, thereby enhancing its attractiveness to both domestic and international financial institutions.
The workshop on Developing the International Financial Center in Vietnam, held in Da Nang City, attracted the participation of over 450 delegates, including experts, scientists, and domestic and international investors. Photo by Viet Niem.
Building an international financial center will be an economic breakthrough
According to Mr. Do Thanh Trung, Deputy Minister of Planning and Investment, establishing an international financial center in Vietnam will create a significant breakthrough in economic development. However, it also poses a major challenge, as this model has no precedent in Vietnam and requires the joint effort and consensus of all stakeholders.
Mr. Trung noted that the trend of transforming traditional financial centers into new financial center models has been increasingly popular in many countries, creating an excellent opportunity for emerging financial centers to assert their position in the market over the past 20 years.
Vietnam possesses numerous unique advantages, including rapid economic growth, a large and increasingly skilled workforce, and modernizing infrastructure. By taking full advantage of these opportunities, Vietnam can attract capital flows shifting from major global financial centers, creating momentum for a breakthrough and establishing a new position in the international financial market.
According to Mr. Trung, the development of an international financial center will bring a qualitative shift to Vietnam’s financial market, making it healthier, more efficient, and aligned with international standards. This will not only accelerate economic restructuring but also promote sustainable development of the national economy.
At the same time, it will enable Vietnam to integrate more deeply into global economic value chains, enhancing the country’s role, prestige, credibility, and influence on the international stage. This will lay an important foundation for Vietnam to enter a new era—a new era of strong development and national advancement.
According to Mr. Do Trung Thanh, Deputy Minister of Planning and Investment, building a financial center will be an economic breakthrough. Photo: Viet Niem
“The choice of model and approach for building the financial center must be based on selectively learning from international experiences. It should serve as a “playground” for international financial investors, with common rules compatible with global practices but adapted to Vietnam’s practical conditions, prioritizing sovereignty and placing national interests above all,” said Mr. Trung.
Expert Recommendations
“Da Nang Financial Center is not just a development project but also a bold statement of Vietnam’s ambition to lead in the global financial market,” emphasized Mr. Andy Khoo, CEO of Terne Holdings, during his speech at the seminar.
Vietnam is emerging as a rising star in the ASEAN region, with an economy maintaining a stable GDP growth rate of 6–7% per year. Trade flows reached USD 732 billion last year, alongside over USD 120 billion in foreign direct investment (FDI) attracted over the past decade, reflecting the strong appeal of Vietnam’s economy.
Vietnam’s 2045 vision aims to become a high-income country while deeply integrating into the global economy.
Vietnam is currently a rising star in ASEAN. Photo: Viet Niem
But the question remains: How can Vietnam evolve from a leading global manufacturing hub into a financial powerhouse of Southeast Asia? And how can Da Nang redefine the meaning of a financial center for the region?
“With the Da Nang Financial Center, we could contribute an additional 3–5 billion USD annually to Vietnam’s GDP and turn this vision into reality,” assessed Mr. Andy Khoo.
According to the CEO of Terne Holdings, the Da Nang Financial Center can differentiate itself and stand out among global financial centers by focusing on green finance, trade finance, and FinTech innovation.
Mr. Andy Khoo, CEO of Terne Holdings, believes that with the Da Nang Financial Centre, we can contribute an additional USD 3–5 billion per year to Viet Nam’s GDP and turn this vision into reality. Photo: Viet Niem
First, regarding green finance, Vietnam’s commitment to achieve net-zero emissions by 2050, combined with ASEAN’s projected $1 trillion demand for green finance by 2030, presents an immense opportunity. The Da Nang International Financial Center could lead in this field by issuing green bonds, facilitating carbon credit trading, and developing financial products tailored for sustainability-focused investors.
Second, FinTech innovation. FinTech is revolutionizing global finance, and Vietnam is already among the regional leaders in cryptocurrency adoption, ranking in the global top 10. Da Nang could serve as a sandbox for startups in blockchain, digital payments, and next-generation AI-based financial solutions (Gen AI).
With policies that encourage innovation, the Da Nang International Financial Center can attract global investors and FinTech companies, positioning Da Nang as a regional hub for FinTech innovation.
When the Lien Chieu Port (Da Nang) is completed, the city will become a natural hub for trade finance. Photo: Viet Niem
Third, trade finance. Da Nang’s geographic location, close to key trade routes under the Regional Comprehensive Economic Partnership (RCEP) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), along with its proximity to major ports such as Tiên Sa and Liên Chiểu, makes the city a natural hub for trade finance.
“One of the most underserved markets in ASEAN, small and medium-sized enterprises (SMEs) face unmet trade finance needs worth $200 billion annually. Da Nang Financial Center can address this by providing innovative trade finance solutions and facilitating seamless cross-border capital flows,” he said.
Finally, to create a distinguishing factor, Andy Khoo suggested that establishing a Freeport to securely store gold bars, artworks, and collectibles would help Da Nang attract high-net-worth individuals and banks seeking asset-backed financial solutions.
By offering arbitration facilities for commercial disputes and tax incentives within a Special Economic Zone (SEZ), Da Nang Financial Center can gain a competitive edge in the global financial market.
VIFC-DN can create a competitive advantage in the global financial market. Photo: Viet Niem
Professor Michael Mainelli, former Alderman of the London Financial District (UK), stated that the vision for a financial center should focus on innovation and be customer-centric, creating a legal and regulatory environment that allows sustainable innovation while balancing costs and regulatory protection.
Professor Mainelli emphasized that the development of an international financial center should prioritize innovation and place the customer at the core.
He also suggested enhancing the intelligence of the financial center, enabling it to understand and manage increasingly complex financial technologies. This would open new markets and provide innovative financial services that meet diverse customer needs.
“Additionally, a comprehensive ecosystem should be built, with business services and a fair, transparent regulatory framework that facilitates participation for everyone—especially those intending to start businesses in the market,” he emphasized. He also recommended that the financial center offer a high quality of life to attract and retain top talent in a creative and sustainable working environment.
At the workshop, Deputy Prime Minister Nguyen Hoa Binh thanked domestic and international speakers and experts for their accurate insights, practical research, and valuable suggestions on establishing international financial centers in Vietnam.
Vietnam will adopt international opinions and experiences to resolutely establish and develop financial centers, aiming to boost economic growth and improve the well-being and happiness of its people.
Deputy Prime Minister Nguyen Hoa Binh has directed that, in the coming period, ministries and local authorities should continue to focus on five major tasks.
Deputy Prime Minister Nguyen Hoa Binh also directed that, in the coming period, ministries and local authorities should continue to focus on five major tasks. The most important is to complete the legal infrastructure and incentive policies in a transparent, open, and internationally standardized manner.
Second, regarding human resources, the Deputy Prime Minister emphasized the need to promptly train and send experts abroad to learn global practices, ensuring a sufficient workforce of professionals capable of management, operations, risk handling, and dispute resolution within the financial centers.
Third, ministries and local authorities need to quickly complete the physical infrastructure and build a comprehensive ecosystem to serve the financial centers.
Ceremony for signing cooperation agreements between Da Nang City and various organizations. Photo: Viet Niem
Fourth, the Deputy Prime Minister also instructed that the development direction must be correctly chosen from the outset, aligned with Vietnam’s conditions and orientation, such as developing FinTech, Blockchain, etc.
Finally, Deputy Prime Minister Nguyen Hoa Binh also requested that international experts and investors continue to collaborate with Vietnam in networking, attracting investment, and promptly establishing and developing international financial centers in the country.
