Hoang Dao Hai, general director of Indochina Infrastructure Management Viet Nam, told the meeting which was attended by officials from the finance and construction ministries and investment funds that becoming a financial centre HCM City would contribute to economic growth. It would boost other industries like tourism, creating more high-income jobs and increasing tax revenues, he said. He pointed to the success of Singapore, Hong Kong and Kuala Lumpur as financial centres, saying HCM City should draw lessons from these major hubs in its efforts to become a financial centre.

Associate Professor Su Dinh Thanh from HCM City University of Economics said there are many requirements for being a financial centre, including economic and political stability, a favourable geographical position for developing the economy and trading, and a reliable and financially strong banking system.

A sound mechanism to oversee and ensure the stability of the system and protect the legitimate interests of consumers, depositors, and investors, modern infrastructure, and reasonable tax rates on investments are also necessary elements, he said. He listed facts to explain HCM City’s importance as an economic, trade, investment and financial hub.

Many challenges

Its financial and monetary markets had developed strongly, accounting for more than 30 per cent of the nation’s financial trans-actions, he said. The HCM City Stock Exchange (HOSE) is one of its biggest advantages, he said.

But the city faces many challenges in its efforts to become a financial centre, he admitted. For instance, its financial and banking sectors are not strong enough to take on foreign rivals, while poor infrastructure and shortage of skilled human resources are obstacles in the financial and banking sectors.

Many delegates said the Government should establish a committee to draft strategies to develop the city to be a financial centre.

They said the Ministry of Finance should develop the capital market by providing stimulus packages and amending financial laws. And the central bank should develop the gold and foreign-exchange markets.