Danang partners with Frankfurt to push financial hub ambition

The agreement was signed at an investment promotion conference in Frankfurt on September 30, organised by the Ministry of Finance, Danang People’s Committee, and the Vietnamese Embassy in Germany.

Under the MoU, the two sides will work together to entice German investors to participate in building the IFC, with a focus on blockchain, green finance, and digital finance.

With its recent economic achievements and strategic geopolitical position, Vietnam is advancing the development of IFCs in Ho Chi Minh City and Danang.

Pham Duc An, Chairman of Danang People’s Committee, said, "Danang has ample potential in fintech. Vietnam aims to further open its market to financial institutions, expand human resource training, and protect investors’ rights. The country is seizing opportunities to develop an IFC, a new model for Vietnam."

"Danang is preparing to fulfill this mission by focusing on fintech, cross-border trade finance, and startups. To achieve this, the city is formulating policies, improving infrastructure, and building a sustainable ecosystem for the IFC. This includes developing data centres, airport and seaport facilities, free trade zones, and international finance training activities," he said.

"We are committed to working alongside investors to co-develop a modern, innovative, and reliable IFC in the Asia-Pacific region," he added.

At the meeting, Vietnamese representatives and German partners also discussed opportunities to develop the IFC and explored new technologies such as blockchain, digital finance, and green finance, as well as policies to attract investment and enhance cooperation between international financial institutions and Vietnamese banks.

Frankfurt, Germany’s most important financial hub, serves as a model for Vietnam with its three pillars of legal framework, infrastructure, and human resources.

Permanent Deputy Prime Minister Nguyen Hoa Binh lauded the initiative of holding the investment promotion conference in Germany. He proposed a cooperation scheme between Frankfurt’s financial hub and the IFCs in Ho Chi Minh City and Danang, based on mutual benefit.

In Vietnam’s strategy to establish itself as an international financial hub, Ho Chi Minh City is positioned as the nation’s liquidity powerhouse, while Danang city serves as an instrumental arm, amplifying its appeal and strengthening market connectivity.

Since Vietnam approved plans for an international financial centre last year, the government has made remarkable progress to realise its vision. Damian Hickey, regional director for Southeast Asia at The Tony Blair Institute for Global Change, analyses the priorities and pitfalls of the process.

Ho Chi Minh City has climbed three places to 95th on the latest Global Financial Centres Index (GFCI), marking its highest ranking since first entering the list in 2022.