The central Vietnamese city of Đà Nẵng is on the cusp of a transformative journey to establish itself as a regional financial centre, with a bold vision to rival global hubs through a focus on green finance and cutting-edge financial technology (FinTech). Backed by the Politburo’s approval, this ambitious project could position Vietnam as a leader in sustainable finance within ASEAN, capitalising on the region’s growing demand for green investment and technological innovation.
The initiative, which includes crafting a special policy framework, aims to harness Vietnam’s strategic location and economic momentum to create a financial ecosystem that prioritises sustainability and modernity. Experts from Singapore and local industry leaders have outlined a roadmap that blends environmental goals with technological advancements, potentially setting a new standard for financial hubs in the region.
A Vision for Green Finance and Sustainability
At the heart of the Đà Nẵng project is an emphasis on green finance, aligning with Vietnam’s national commitment to achieve net zero emissions by 2050. Andy Khoo, a financial expert from Terne Holdings in Singapore, highlighted the immense potential for the city to lead in this space. He pointed to ASEAN’s projected demand for US$1 trillion in green finance by 2030 as a golden opportunity for Vietnam to carve out a niche. “The Đà Nẵng centre can become a pioneer by issuing green bonds, enabling carbon credit trading, and developing financial products tailored for sustainability-focused investors,” Khoo noted. Such initiatives could attract international capital while supporting Vietnam’s broader environmental goals, positioning the city as a hub for eco-conscious investment in Southeast Asia. 
This focus on sustainability is not just about financial instruments but also about integrating environmental, social, and governance (ESG) criteria into the centre’s operations. Phan Đức Trung, President of the Vietnam Blockchain Association (VBA), echoed Khoo’s sentiments, advocating for a model that combines green finance with circular economy principles. Trung suggested that Đà Nẵng should balance new and traditional economic activities to ensure sustainable development, avoiding over-reliance on a single mechanism.
If successful, this approach could serve as a blueprint for other regional cities, demonstrating how financial hubs can drive economic growth while addressing pressing global challenges like climate change. However, the scale of investment and policy coordination required raises questions about implementation, particularly in ensuring that green initiatives translate into tangible outcomes rather than remaining aspirational.
FinTech as the Engine of Innovation
Beyond green finance, the Đà Nẵng financial centre aims to be a crucible for FinTech innovation, leveraging technologies such as blockchain, digital payments, and generative artificial intelligence (GenAI). Khoo stressed the importance of creating a regulatory sandbox—a controlled environment for startups to test new ideas without the full burden of regulation—to foster innovation in these fields. “FinTech is revolutionising global finance, and Đà Nẵng must have policies that encourage experimentation,” Khoo said. He underscored the need for the centre to operate in English to build trust among international investors, a practical step towards integrating the hub into the global financial network. Trung added depth to this vision, proposing specific areas of focus for FinTech development, including payment technology, insurance technology, compliance solutions, asset management, cybersecurity, and blockchain applications. He also recommended experimental initiatives such as cryptocurrency asset transactions, carbon exchange platforms, and data exchange systems, which could place Đà Nẵng at the forefront of financial innovation.
While these proposals are forward-thinking, they come with challenges. The adoption of emerging technologies like blockchain and cryptocurrency requires robust cybersecurity measures and clear regulatory frameworks to prevent misuse and ensure stability. If Vietnam can navigate these hurdles, Đà Nẵng could emerge as a testing ground for financial technologies that reshape how money moves in the region.
Governance and Legal Foundations
A critical pillar of the Đà Nẵng financial centre’s success will be its governance and legal framework. Dr Andreas Baumgartner, CEO of The Metis Institute, emphasised that a strong, transparent, and reliable system is non-negotiable for attracting global investors. Without it, even the most innovative policies risk falling short. Khoo reinforced this point, advocating for an independent legal system aligned with international standards. “By combining talent development with governance that meets global expectations, Vietnam can create an ecosystem where businesses thrive and investors feel secure,” he said. Such a system would not only draw foreign direct investment but also ensure that the centre remains a stable and credible player in the volatile world of international finance. For Vietnam, this presents both an opportunity and a challenge. The country has made strides in reforming its legal and economic systems to align with global norms, but gaps remain in enforcement and transparency. If Đà Nẵng can establish a governance model that inspires confidence, it could set a precedent for other Vietnamese cities and potentially influence national policy. However, any missteps in implementation could undermine the project’s credibility before it even takes off.
Economic and Regional Implications
The establishment of a financial centre in Đà Nẵng carries significant implications for Vietnam’s economy and its role within ASEAN. As a coastal city with a growing reputation as a tourist and business destination, Đà Nẵng is well-positioned geographically to connect with other regional hubs like Singapore, Bangkok, and Kuala Lumpur. A successful financial centre could elevate the city’s status, driving job creation, infrastructure development, and foreign investment.
Moreover, the focus on green finance aligns with broader regional trends. ASEAN countries are increasingly prioritising sustainability as a core component of economic development, with initiatives like green bonds and carbon markets gaining traction. If Đà Nẵng can capture a significant share of this market, it could enhance Vietnam’s influence within ASEAN, positioning the country as a leader in sustainable finance at a time when environmental concerns are reshaping global investment patterns. Yet, competition is fierce. Singapore remains the dominant financial hub in Southeast Asia, with established infrastructure, a mature legal system, and a deep pool of talent. For Đà Nẵng to stand out, it must offer unique value—whether through lower operational costs, specialised green finance products, or a more agile regulatory environment. Balancing these factors will be crucial to carving out a distinct identity in a crowded field.
Challenges and Speculative Outcomes
While the vision for Đà Nẵng is compelling, several challenges loom large. Developing a financial centre from the ground up requires substantial capital, expertise, and long-term commitment—resources that may strain local and national budgets. Additionally, attracting international talent and businesses to a relatively untested market will demand aggressive marketing and incentives, alongside assurances of stability and profitability.
Speculatively, if the centre succeeds in its green finance and FinTech goals, it could generate thousands of high-skilled jobs and contribute billions to Vietnam’s GDP over the next decade. However, these estimates remain unconfirmed, and there is no concrete evidence yet to suggest that such outcomes are guaranteed. Similarly, if governance reforms lag or regulatory sandboxes fail to prevent financial misconduct, the project risks becoming a costly misadventure rather than a transformative success.
Cultural and linguistic barriers also warrant consideration. While operating in English may attract foreign investors, it could alienate local stakeholders who are more comfortable in Vietnamese, potentially creating a disconnect between the centre’s operations and the broader community. Bridging this gap will be essential to ensuring that the benefits of the financial hub are felt locally as well as internationally.
A Bold Step Forward
The project to transform Đà Nẵng into a regional financial centre represents a bold step for Vietnam, blending economic ambition with environmental and technological innovation. By prioritising green finance and FinTech, the city aims to not only drive economic growth but also contribute to global sustainability goals—a dual mission that could redefine what a financial hub looks like in the 21st century.
Yet, the road ahead is fraught with complexity. From establishing a credible legal framework to competing with established regional players, Vietnam must navigate a host of challenges to realise this vision. If successful, Đà Nẵng could become a beacon of innovation and stability, driving sustainable development for both the region and the world. For now, the project remains a promising idea—one that, with the right execution, could herald a new era for Vietnam on the global stage.
