State Bank of Vietnam discusses draft regulatory framework for a planned international financial centre with the Lord Mayor of the City of London

The State Bank of Vietnam (SBV) hosted a working meeting between Deputy Governor Pham Tien Dung and Alastair King, Lord Mayor of the City of London, to exchange experience and explore cooperation on Vietnam’s plans for an international financial centre and related areas including fintech, Open Banking, digital assets, e-payments and risk management. SBV noted it is drafting a decree covering licensing for establishment, banking operations, foreign exchange management, and anti-money laundering and counter-terrorist financing requirements for the international financial centre. Discussions referenced UK-supported initiatives in Vietnam, including TheCityUK programmes and a Trade Finance Registry (TFR) data platform aimed at digitising and increasing transparency in trade finance. The City of London highlighted elements it sees as core to the UK’s model, including a transparent legal framework based on English common law, a bottom-up approach to regulation, market participation in rulemaking, and the use of regulatory sandboxes. SBV also outlined developments in Vietnam’s payments market, including ongoing double-digit growth in cashless payments and work to complete the legal framework for mobile-based financial inclusion, including eKYC rules that allow transactions up to certain limits before additional verification. The parties identified further cooperation opportunities spanning the international financial centre project, fintech and Open Banking, digital assets and potential long-term investment interest from UK pension funds, while also noting supervisory challenges around crypto assets, stablecoins, and cross-border payments and data transfers.