On March 3, Da Nang Party Secretary Nguyen Van Quang and a delegation visited Singapore to study the experience of building and operating a financial center.
During working sessions with Raffles Family Office Singapore and KPMG Singapore, the delegation gained valuable insights into the legal framework, operational models, and key factors for attracting investment.
Da Nang leaders gave souvenirs to representatives of Singapore banks. Photo: Ha Phan
Transparent Legal Framework and Investment Attraction
Raffles Family Office emphasized that a transparent, comprehensive, and attractive legal framework is crucial for drawing investors. A diverse and synchronized financial ecosystem is also essential for Da Nang to compete with other global financial centers.
The firm acknowledged the development potential of Vietnam and the ASEAN region but noted that Vietnam needs to improve its licensing system, tax mechanisms, and coordination among banks to fully capitalize on opportunities. They also discussed the possibility of connecting investors within their network to suitable projects in Da Nang.
Consultation from KPMG Singapore
The delegation also met with KPMG Singapore, one of the world’s leading auditing and consulting firms, to explore the legal requirements, tax policies, and auditing and accounting mechanisms necessary for establishing an effective financial center.
KPMG Singapore suggested that Da Nang could adopt a financial center model based on the English Common Law system, with English as the official language and a “one-stop” mechanism to simplify administrative procedures. Tax exemptions for specific financial sectors were also highlighted as a key factor in attracting international businesses.
The discussions also covered the training of financial management experts. Da Nang needs to prepare a high-quality workforce and build a “soft infrastructure” to meet market demands. Specialized training programs in finance and management, intellectual property protection systems, high technology, and artificial intelligence should also be prioritized.
Opportunities for Collaboration
The meetings in Singapore have opened up many opportunities for collaboration, enabling Da Nang to access advanced global models. This serves as a crucial foundation for the city to develop a modern, attractive, and internationally competitive financial center.
The delegation also held discussions with Bank of Singapore, a leading financial institution in wealth management. The bank recognized Da Nang’s potential as a regional gateway for global financial services and emphasized that attracting businesses to invest in the city would also drive interest from financial institutions.
Da Nang’s Competitive Advantages
Da Nang possesses strong hard and soft infrastructure, including transportation systems, airports, seaports, data centers, artificial intelligence, and undersea fiber optic cables. It has been ranked as one of Asia’s smart cities, a factor that enhances its appeal to major financial institutions.
Bank of Singapore also highlighted the importance of green finance and suggested that Vietnam should develop a roadmap for modernizing and greening its infrastructure and policies to support sustainable financial growth. Da Nang demonstrated its commitment to sustainable development by breaking ground on an eco-friendly industrial park.
While Vietnam is considered a promising market, challenges remain in attracting international banks to open offices in Da Nang, improving access to domestic investment funds, and implementing more flexible foreign currency lending policies.
Source: An Thuong – laodong.vn