Danang prepares role as economic bridge

Danang prepares role as economic bridge

Investors and international financial funds are paying more attention to plans to develop a financial centre in the central city of Danang.

Danang’s financial hub will have a different focus to the financial centre being planned for Ho Chi Minh City

At a workshop on the issue in January, Standing Vice Chairman of Danang People’s Committee Ho Ky Minh said that global investment funds from the US, Singapore, the Middle East, and Switzerland are interested in helping to develop a regional financial centre (RFC) in Danang in the direction of innovation, green finance, fintech, and trade finance.

Danang has proposed an ecosystem for a multi-component RFC, focusing on three service groups. The first is to provide services such as payment services, cross-border trade, risk management, foreign exchange trading, and green financial services, including financial services associated with the development of Danang Free Trade Zone.

The second group involves fintech services, such as providing software and application platforms to perform payment services, crypto-asset transactions, and innovative solutions based on AI, big data, cloud computing, and more. At the same time, incubation space will be provided for startups and fintech companies seeking growth and internationalisation.

The third group involves investment support services, business development, and utility services such as auditing, accounting, legal services, tax consulting, customs, leasing, real estate valuation, and related assets to create a diverse ecosystem.

“To facilitate the establishment of the RFC, Danang has planned available land of 6.17 hectares with location, connectivity, and infrastructure among the best in Vietnam. The land is earmarked for office buildings, resorts, conferences, entertainment, and other amenities,” Minh said.

In addition, Danang has also allocated a 9.7ha to develop fintech services adjacent to the Software Park No.2 – a key area attracting high-tech companies with high-quality infrastructure and IT.

Andy Khoo, CEO of Terne Holdings, said, “With the Danang centre, we can contribute an additional $3-5 billion annually to Vietnam’s GDP and make this vision a reality.”

According to Khoo, Hanoi is the main centre for policymaking and state management, while Ho Chi Minh City is a key financial hub and a global gateway for capital markets and corporate finance. Now, Danang can become a strategic bridge between these two economic locomotives.

“Unlike a financial centre in Ho Chi Minh City that may focus on capital markets, the Danang one can specialise in green finance, trade facilitation, and fintech innovation, in line with global market trends,” Khoo said.

He recommended that focusing on green finance, trade finance, and digital innovation will help the RFC create a clear distinction. The special economic zone and free port will provide tax advantages and storage solutions for high-value assets. English-speaking operations are required to ensure trust from international investors.

To position Danang as the next financial hub of Southeast Asia, it is necessary to focus on green finance, fintech innovation, and trade finance, in line with the city’s unique strengths and opportunities, Khoo added.

Dr. Andreas Baumgartner, CEO of the Metis Institute, said that successful financial centres need a strong, transparent, and trustworthy legal and governance environment.

“This requires the legal framework in which they operate to be predictable, clear, stable, reliable, and in line with global standards,” he said. “The Dubai International Financial Centre and the Abu Dhabi Global Market in the UAE are good examples, with strong legal systems based on English common law, clear regulations, and a transparent governance structure.”

Baumgartner noted that the undertaking will require perseverance and endurance.

“There will be times when you wonder whether it is really worth it. But, I assure you: if you look at what financial centres have achieved elsewhere, what they have created and enabled, the answer is clear: yes, they are worth every effort. They can and will make a big difference if carried out correctly,” he said.

VIR