The State Bank of Vietnam’s Banking Times convened a discussion on international financial centre (IFC) models and published an interview with economist Richard D. McClellan setting out reform priorities for Vietnam’s plans to develop Ho Chi Minh City as an IFC and Da Nang as a regional financial centre. McClellan argued that a credible IFC depends on practical conditions rather than formal declarations, pointing to flexible capital movement, access to foreign currency without undue restriction, and a transparent and predictable legal framework that supports contract enforcement, arbitration and compatibility with international law. He also highlighted alignment with global standards such as International Financial Reporting Standards and the need for core market infrastructure including exchanges and clearing, alongside an environment able to attract international talent. For Vietnam, he described a “hybrid” approach with a tailored framework rather than a fully separate jurisdiction, while calling for bolder changes on foreign-currency usage, profit repatriation, dispute resolution and investor protection. He flagged risks including capital leakage and exchange-rate pressure from overly rapid opening, regulatory fragmentation from overlapping mandates, and reputational damage if Vietnam is perceived as insufficiently transparent or placed on a grey list. In outlining the central bank’s role, he pointed to improving capital-flow mechanisms, maintaining compliance with anti-money laundering and counter-terrorist financing standards, developing a legal framework for digital finance, and progressing Basel III implementation, alongside stronger capital and liquidity supervision, transparent reporting and independent audits for IFC activity, and preparedness for more complex cross-border transactions.

Original source View in tracker