In a recent interview with Vietnam News Agency (VNA) correspondents in the U.K., Bang noted that while Vietnam’s economy is not yet large in scale, maintaining its current growth momentum will make the establishment of an international financial center inevitable as the economy expands.
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Associate Professor Nguyen Dang Bang at the University of Cambridge’s Judge Business School |
According to the scholar, Vietnam is among the world’s most open economies, ranking in the top five for trade openness, with a trade-to-GDP ratio exceeding 1.5 times. This liberal trade environment extends to financial flows, laying the groundwork for a global financial hub. Its strategic location at the intersection of Southeast and East Asia—home to the fastest-growing economies—further strengthens its position.
A key advantage, Bang noted, is Vietnam’s population of over 100 million, with young people making up a large share and a strong domestic market. In contrast, Singapore, the region’s top financial hub, has just six million people and an area comparable to Phu Quoc Island. Vietnam also enjoys geopolitical stability, making it a more attractive destination for international investors compared to risk-prone markets.
However, the scholar cautioned that while Vietnam has strong fundamentals, building a financial hub will require significant investment and reform. The biggest challenge is establishing a comprehensive legal framework. Vietnam, he noted, lacks expertise in this area and must act swiftly, possibly relying on foreign specialists despite the high costs in the early stages.
Talent development is another hurdle. To compete with Singapore, where leading universities rank among the world’s top finance institutions, Vietnam must invest in world-class financial education and structured training programs. Infrastructure is also crucial. Beyond strong digital and transport networks, high-quality healthcare and international schools are essential to attract top financial professionals.
Furthermore, Vietnam must enhance its ability to attract global talent. In addition to owning competitive domestic professionals, a financial hub must draw international financial experts, fintech entrepreneurs, bankers, and investors.
He pointed out that Ho Chi Minh City holds a competitive advantage in attracting international talents and investors, thanks to its rich cultural heritage and vibrant social life, factors that could make it more appealing than Singapore, Vietnam’s main regional competitor in financial hub development. The living environment, he said, is a decisive factor for top financial minds to choose to live and work.
Source: VNA