Đà Nẵng aiming to become a regional financial centre before 2050

A view of Đà Nẵng. The city will form FinTech innovation centres in the city at high-tech, software and centralised information technology parks. — VNS Photo Thanh Hải

Đà Nẵng has set a target of having at least five financial technology (FinTech) businesses with revenues of over VNĐ1 trillion yearly and at least two or three of them employing 1,000 people by the end of 2030.

The targets are part of the Đà Nẵng City People's Committee‘s recently announced orientations and solutions for the development of the finance-banking industry over the 2021-30 period, with a vision to 2050.

Đà Nẵng sees the application of science, modern technology and innovation coupled with the development of high-quality human resources as the main and key drivers for rapid and sustainable development, improving competitiveness, shortening the gap in the development level of the city's finance and banking industry compared to major economic centres in the country and the region.

The city is aiming to employ all resources to promote the development of the financial system in the 2021-30 period, working to build Đà Nẵng into a regional financial centre before 2050.

The city's goals are for an average growth rate of 8 to 8.5 per cent a year in the 2021-30 period, an average credit growth of between 12 and 13 per cent per year and the ratio of outstanding credit/GRDP is from 2.2 to 2.5 times.

Đà Nẵng City will gradually enhance its position in financial-banking forums, drawing the presence of branches and representative offices of at least two to three commercial banks in the top 100 largest banks, in terms of total assets, in the Asian region.

In addition, Đà Nẵng wants to have at least 80 per cent of adults using electronic payment services by 2030, with the proportion of cash in total means of payment below 30 per cent.

At the same time, the city expects to attract one or two world-class businesses, between three and five leading FinTech companies invested in the city and to establish at least one, and up to three start-ups in the field with a value of over US$1 million.

To develop the FinTech ecosystem, Đà Nẵng has researched and proposed to the Gvernment to apply a sandbox testing mechanism directly in the area, associated with an innovation and creativity support mechanism to attract more domestic and foreign FinTech businesses.

Đà Nẵng will form FinTech innovation centres in the city at high-tech, software and centralised information technology parks.

Đà Nẵng also continues to implement telecommunications and transmission line goals of the Đà Nẵng City Digital Transformation Project to 2025, with a vision to 2030. The city encourages technology corporations to invest in data centres to serve FinTech businesses with high and guaranteed network security.

The city also encourages training institutions to promote in-depth training in financial technology, digital banking, e-commerce, and information technology management. It should include training at both undergraduate and postgraduate levels and cooperation with financial and banking institutions to develop enrollment targets consistent with market needs.

In addition, the city will arrange a land fund (two available clean land plots with an area of ​​6.17 hectares and 9.7 hectares respectively) to form a number of business centres associated with financial symbols of the city, forming an ecosystem providing international financial services under the supervision and administration of a common management agency.

Over the short term, the city will pilot the application of some specific and preferential policies compared to the general national legal framework to immediately develop components of a regional financial centre.

The preferential policies aim to allow financial institutions to provide services that cannot be provided in the domestic market due to a lack of regulations.