Ho Chi Minh City financial centre urged to work with regional hubs
The centre has attracted 10 members and plans to establish procedures and regulations for admitting investment funds.
Ho Chi Minh City's international financial centre should build connections with Singapore and Hong Kong rather than compete for resources, an international finance expert told the Fortune Southeast Asia 500 Summit on November 3.
Ashley Zhang, Asia-Pacific regional head at the Institute of International Finance, said the centre should draw in global investment, improve financial links across the region and fill gaps in currency services. She also called for infrastructure supporting multiple currencies, payments and risk hedging.
The centre, known as VIFC-HCMC, has attracted 10 members and plans to introduce rules and procedures for admitting investment funds. Ho Chi Minh City is one of two locations chosen for Vietnam's international financial centre, which will operate as a single centre across two locations.
VIFC-HCMC chief executive Richard D. McClellan said it aims to align domestic rules with international standards and reduce obstacles to investment in Vietnamese projects. Services and sectors will be opened progressively as the necessary legal frameworks are completed.
Warrick Cleine MBE, chairman and CEO of KPMG Vietnam and Cambodia, said companies receiving capital would need stronger governance, transparency and disclosure. Pham Hong Hai, deputy CEO of UOB Vietnam, identified capital controls and foreign investors' ownership registration as unresolved issues.
Zhang said uncertainty over policy and uneven implementation continued to make international investors cautious about Southeast Asia, despite improving profitability.
