Standard Chartered to aid development of Ho Chi Minh City financial hub
Standard Chartered to aid development of Ho Chi Minh City financial hub
During a meeting with Deputy Prime Minister Le Minh Khai on June 27, group chairman of Standard Chartered Jose Vinals announced the bank’s commitment to supporting the development of an international financial centre in Ho Chi Minh City.
"Standard Chartered will leverage its experience and best practices to support the development of Ho Chi Minh City as an international financial hub," Vinals said.
DPM Khai highlighted the government's keen interest in this initiative, dedicating substantial resources to study and consult on international experiences.
"The government of Vietnam seeks insights and suitable models from global corporations, including Standard Chartered, to develop a comprehensive financial ecosystem," Khai said, stressing the significance of institutional, policy, and developmental solutions for the financial sector.
Since the early 2000s, Ho Chi Minh City has prioritised financial market development as a key economic restructuring strategy, leading to the concept of establishing an international financial centre. This national direction gained momentum with the establishment of a steering committee in October 2023, chaired by DPM Khai.
As one of Vietnam's three economic hubs, alongside Hanoi and Danang, Ho Chi Minh City is well-positioned to draw in both traditional and financial businesses. The city is also home to most of the country's financial institutions and the birthplace of Vietnam's stock market.
Geographically, Ho Chi Minh City benefits from a time zone that differs from most major global financial centres, potentially attracting idle capital during other markets' off-hours. The city's proximity to dynamic Asian economies, including Singapore, Malaysia, Indonesia, Thailand, India, China, the Philippines, Japan, South Korea, and Taiwan, enhances its strategic location.
While Danang has also explored the initial stages of establishing a financial centre, the Ministry of Planning and Investment recognises that developing an international financial centre in Ho Chi Minh City is a "significant and challenging task." The project must maximise the potential and advantages of both Vietnam and Ho Chi Minh City, as well as Danang.
Beyond developing the international financial centre, Vinals noted that Standard Chartered has facilitated approximately 15 per cent of foreign direct investment into Vietnam over the past three years.
He confirmed the bank's intention to continue increasing investments to support Vietnam's growth.
"Having celebrated 120 years of operation in Vietnam, we are committed to continuing our partnership for the next 120 years," Vinals added.
In response, DPM Khai assured that the government would continue to create better conditions for the long-term, stable operations of financial institutions and banks like Standard Chartered in Vietnam.
He requested that Standard Chartered remain an advisor to the Vietnamese government on national credit rating improvements, policy consulting, investment capital arrangements, and strategies to achieve net-zero emissions.
