Vietnam advances plans for international financial centre as trade risks grow
HANOI: Vietnam is moving forward with plans to establish an international financial centre to enhance its role in the global financial market and attract international capital flows, Finance Minister Nguyen Van Thang told parliament on Tuesday (June 10).
The initiative could position Vietnam as a regional hub for financial activity, boosting its economic influence, according to Thang and a draft plan, now in its 30th version, seen by Reuters.
The draft includes policies covering foreign exchange liberalisation, banking activities, capital market development, tax incentives and labour provisions targeting experts and investors.
Foreign investment inflows into Vietnam in January-May rose 7.9 per cent to US$8.9 billion, the government said, while foreign investment pledges were up 51.1 per cent to US$18.4 billion.
But the United States has threatened heavy tariffs on Vietnamese-made goods if it does not make major concessions, which could dampen its investment momentum. The country is an important manufacturing base for companies ranging from Samsung Electronics, Foxconn and Intel to Nike and Adidas.
The National Assembly, Vietnamese parliament, will vote on the resolution on June 27.
A key feature allows members of the financial centre to use foreign currency for transactions and secure international financing, according to the draft.
"Members are permitted to establish trading floors and platforms for commodities, carbon credits, cultural products and innovative startups," the draft said.
Two sources familiar with the matter confirmed the draft as the latest version. Administrative procedures will be simplified, the draft added, creating more favourable conditions for participants.
The financial centre will apply accounting and financial standards, including minimum capital adequacy and liquidity ratios, specific to both 100 per cent foreign-owned banks and domestic banks, aligning with international practices.
It will operate across two cities: financial hub Ho Chi Minh City and tourism-focused Danang.
The government had earlier set a goal to have the centres operational this year. - Reuters
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
36 minutes ago
- The Star
Singapore office demand soars 12-fold as Hong Kong ‘subdued': Colliers
Singapore's office leasing activity surged 12-fold in the first six months of the year, topping the Asia-Pacific region, while Hong Kong leasing remained subdued amid a stubborn supply glut, according to a report by Colliers. Tenants relocating to newly completed premium spaces drove the spike in demand in Singapore, the report said. The city state, widely deemed Southeast Asia's top finance hub, also saw rents improve by 1.3 per cent to S$12.10 (US$9.42) per square foot per month as of the second quarter, according to a separate report by CBRE. 'Singapore's office demand was spurred by companies attracted to its macroeconomic stability, geopolitical neutrality and suitability as a regional business hub,' said Mike Davis, managing director for occupier services at Colliers Asia-Pacific. 'There was also a spate of relocations due to a flight to quality.' With the supply of high-end office space in Singapore's central business district set to remain tight in the next two years, Davis said growth in prime office rents was likely to accelerate. Overall, leasing activity across 11 key markets tracked by Colliers in Asia-Pacific rose 9.6 per cent to 4.5 million square metres (48.4 million sq ft) in the first half from a year earlier, the report said. Besides Singapore, the Philippines and Japan also supported the regional growth, with leasing demand growing by 56 per cent and 55 per cent, respectively, the consultancy said. In absolute terms, India, mainland China and Japan accounted for more than 90 per cent of total office demand, pushing the region's leasing volumes higher, it added. 'Across Asia-Pacific, we're witnessing a pivotal shift in how occupiers engage with office space,' said Davis. 'The resurgence in demand – led by dynamic markets like Singapore, the Philippines and Japan – signals not just recovery but reinvention. 'As flexibility and sustainability priorities take centre stage, organisations are gravitating towards prime grade A assets that reflect their values and future ambitions. This flight to quality is reshaping the region's office landscape, and we expect this momentum to build through the second half of 2025 and beyond.' Hong Kong, South Korea and Taiwan recorded 'relatively subdued' demand, the report said, while not providing specific figures. Hong Kong prime office rents were projected to decline by 10 per cent this year as vacancy rates climbed to about 19 per cent 'with limited appetite for expansion', Colliers said. As of the first half, 17.3 per cent of the city's office space was empty. 'This ongoing imbalance will prompt landlords to enhance the competitiveness of their rental offerings,' the report said. Average office rents in Hong Kong were estimated at US$73.90 per square metre per month, about a third lower than the average office rents in Singapore at US$97 per square metre per month, the report said.
The Star
36 minutes ago
- The Star
Analog Devices forecasts upbeat results on strong industrial demand
An Analog Devices logo appears in this illustration taken August 18, 2025. REUTERS/Dado Ruvic/Illustration/File Photo (Reuters) -Analog Devices forecast fourth-quarter revenue above analysts' expectations on Wednesday, as the company anticipates stable demand for its products despite tariff uncertainty. The chipmaker has benefited from increased demand in its industrial segment, resulting in healthy bookings trends and growth in its order backlog, as manufacturers pulled forward shipments amid shifting U.S. tariff policies. Shares of the Wilmington, Massachusetts-based company rose about 4% in premarket trading. The company forecast fourth-quarter revenue of $3.00 billion, plus or minus $100 million, above analysts' estimates of $2.82 billion, according to data compiled by LSEG. On an adjusted basis, the company expects fourth-quarter, profit per share to be $2.22, plus or minus 10 cents, above analysts' estimates of $2.03. "We closed the third quarter with continued backlog growth and healthy bookings trends, notably in the Industrial end market," said CEO Vincent Roche. Industrial revenue, which accounts for 45% of the company's total sales, rose 23% to $1.29 billion in the third quarter. The industrial segment focuses on providing advanced semiconductor solutions that power automation, sensing and control systems across various industries. Sales in the automotive segment grew 22% to $850.6 million for the third quarter. The company posted third-quarter revenue of $2.88 billion, above analysts' estimates of $2.77 billion. (Reporting by Kritika Lamba in Bengaluru; Editing by Leroy Leo)
Free Malaysia Today
an hour ago
- Free Malaysia Today
US-EU trade deal not far from ECB's baseline forecast, says Lagarde
The US-EU trade deal establishes an effective average tariff estimated to lie between 12% and 16% for US imports of euro area goods. (EPA Images pic) FRANKFURT : The trade deal between the US and the EU is close to the baseline assumed by the European Central Bank (ECB), but uncertainty persists in key sectors like pharmaceuticals and semiconductors, ECB president Christine Lagarde said today. The EU accepted 15% tariffs on most items in the deal agreed last month, averting an all-out trade war and providing businesses greater clarity, even if the new barriers slow economic growth. 'The trade deal establishes an effective average tariff estimated to lie between 12% and 16% for US imports of euro area goods,' Lagarde said in Geneva. 'This effective average tariff is somewhat higher than – but still close to – the assumptions used in our baseline projections last June,' she said. 'The outcome of the trade deal is well below the severe scenario for US tariffs of over 20%,' she added. The ECB's baseline projection assumes economic growth of 1.1% next year while the 'severe' outcome would have lowered this to 0.7%, the ECB's June projections show. 'The US-EU trade deal is still likely to weigh on economic growth,' Lagarde added, saying a long-predicted slowdown was already evident in second-quarter economic data. 'The EU, which has always relied on extensive foreign trade for growth, should now diversify its trade with other nations to maintain growth and offset the negative impact of tariffs,' Lagarde said. 'While the US is – and will remain – an important trading partner, Europe should also aim to deepen its trade ties with other jurisdictions, leveraging the strengths of its export-oriented economy,' she said.
