Vietnam and Luxembourg sign MoU to strengthen financial cooperation

Vietnam and Luxembourg sign MoU to strengthen financial cooperation

On October 12, in Hanoi, Vietnam’s Minister of Finance Ngo Van Tuan and Luxembourg’s Minister of Finance Gilles Roth signed an MoU on cooperation between the two countries’ ministries of finance.

Vietnam and Luxembourg sign MoU to strengthen financial cooperation. Photo: Duc Minh

Under the MoU, the two ministries agreed to strengthen cooperation in areas related to knowledge, skills, and expertise in financial services, particularly in training and the development of financial services and activities.

The agreement also aims to build knowledge and provide thought leadership on emerging issues in financial services affecting both parties, including, but not limited to, sustainable finance, financial technology (fintech), investment funds, capital markets, banking, and insurance.

Cooperation may take several forms, including exchanging information on relevant trends in financial activities and products, as well as the laws and regulations governing the financial sector.

The two sides may organise seminars and training courses in Vietnam, primarily for executives of financial institutions, officials from the Ministry of Finance and the State Bank of Vietnam, and other beneficiaries selected by agreement in limited numbers.

Similar seminars and training courses may be held in Luxembourg, primarily for executives of Vietnamese financial institutions, officials from the Ministry of Finance and the State Bank of Vietnam, and other beneficiaries mutually agreed upon by the two parties.

Other forms of cooperation include online training courses on mutually agreed topics; assistance in identifying and accessing experts to conduct studies on areas of cooperation in response to specific needs at different stages; and exploring the possibility of joint activities to boost investment between Vietnam and Luxembourg.

The signing of the MoU establishes a basis for the two countries to strengthen experience-sharing, connect resources, and implement practical cooperation initiatives in the financial sector, contributing to closer bilateral economic and financial ties.

Photo: Duc Minh

Speaking at the signing ceremony, Minister Tuan said, "Relations between Vietnam and Luxembourg had made significant breakthroughs in recent years, underpinned by increasingly strengthened political and diplomatic ties, particularly following visits to Luxembourg by Vietnam’s prime minister and to Vietnam by Luxembourg’s prime minister."

He expressed his pleasure and appreciation for the efforts of the relevant agencies on both sides in working towards the signing of the MoU, which he said would provide a solid foundation for future cooperation.

Vietnam particularly hopes that Luxembourg will leverage its strengths to support capital market development and attract investment funds. As Vietnam focuses on achieving annual economic growth of 10 per cent or higher over the next decade, the need to mobilise resources for development investment is substantial.

“These are among Luxembourg’s outstanding strengths, particularly its ability to pull in international investment funds. We are also keen to develop international financial centres in Danang and Ho Chi Minh City, with the ambition of becoming a regional and global hub for green financial transactions,” Minister Tuan said.

Minister Roth said the country had considerable strengths, with investment funds managing assets worth up to €9 trillion ($10.07 trillion) and a leading green financial exchange.

“We stand ready to provide support and share our experience in fund management regulatory frameworks, green finance development, and creating opportunities to connect Vietnam’s financial market with leading financial institutions in Europe,” he said.

Minister Tuan expressed agreement with the proposed priorities and initiatives put forward to deepen collaboration in financial services, focusing on helping Vietnam improve its institutional and regulatory frameworks, and supporting human resource training.

At the bilateral meeting following the signing ceremony, the two ministers discussed the economic and financial situations of their respective countries, as well as policy.

Minister Roth shared Luxembourg’s experience in maintaining fiscal discipline, managing public debt, and preserving its high credit rating. He also discussed several European Union financial policy directions, including issues considered by the Economic and Financial Affairs Council and the Eurogroup.

The two sides agreed to continue strengthening links in capital markets and encouraging Luxembourg’s investment funds and financial institutions to increase their interest in, and long-term investment in, Vietnam.

They also discussed the potential to enhance cooperation between the Vietnam Stock Exchange and the Luxembourg Stock Exchange, particularly in the listing and disclosure of information relating to green financial instruments. This would enable Luxembourg to leverage its position as a major European financial centre while expanding connections with Vietnam and the wider ASEAN market.

In digital transformation and sustainable finance, the two ministers expressed interest in sharing experience in risk-based supervision, regulatory sandboxes for fintech, the EU’s regulatory framework for crypto-assets, and the application of AI in financial market management and supervision.

Regarding the development of international financial centres in Vietnam, Minister Tuan called on Luxembourg to share its experience in establishing legal frameworks and developing financial products and services, including investment funds, asset management, and green bonds. He also proposed support for human resource training and stronger links with Luxembourg’s green finance ecosystem.

Vietnam called on Luxembourg to continue facilitating connections between its financial institutions and investors and the Vietnamese market, helping engage international financial resources to support the country’s socioeconomic development.

Minister Tuan called on Luxembourg to continue playing an active role in EU mechanisms and supporting efforts to encourage the remaining EU Member States to complete the ratification of the EU-Vietnam Investment Protection Agreement at an early date. This would help establish a favourable legal foundation for expanding investment and economic cooperation between Vietnam and the EU.

VIR