Ho Chi Minh City could take Busan as a role model in its ambition to become the next world financial hub, after South Korea built Busan’s financial center in 2011, said Choi Keun Hwan, general director of the representative office of Daejeon City in Vietnam.

Ho Chi Minh City aims to create its own international financial center by 2025.

Over the past few years, the city has been actively learning from other financial hubs of the world to find the right direction.

“I think there are so many similarities between Busan and Ho Chi Minh City," Choi, who worked for 27 years in Busan Bank's international finance and FDI department and has been with the Daejeon City office in Ho Chi Minh City for three years, told Tuoi Tre News.

“The Vietnamese city has so many strong points in financial markets, for instance, its position, the stability in forex policies, low banking rates, and the manufacturing foundation, which are the same as Busan."

He valued the southern Vietnamese metropolis’ enormous potential to become the next global financial hub to contribute to the world's manufacturing industry.  

Pointing out that Ho Chi Minh City is still a local city of Vietnam, Choi argued that it needs to transform itself “from regional to nationwide”.

Busan and the neighboring cities like Gyeongnam and Ulsan have had strong foundations in manufacturing, electronics, carmaking, shipbuilding, steel, heavy chemical industry and light industry; and services such as finance, logistics, shipping, entertainment and culture, according to the Korea Chamber of Commerce and Industry in Vietnam (KOCHAM).

As Hong Kong’s global position has been shaken, Ho Chi Minh City’s location near world financial centers like Hong Kong and Singapore should be a significant advantage.

If there is more space from Thu Thiem, in Thu Duc City, and better connection with Long Thanh International Airport in neighboring Dong Nai Province, which is expected to be the central airport of Southeast Asia, Ho Chi Minh City will become highly competitive.

Ho Chi Minh City is fully capable of playing the role of an international financial market, said a KOCHAM representative.

Investment attraction

South Korea’s accumulative investment in Vietnam as of December 2021 had reached US$74.7 billion, helping maintain its position as the leading foreign investor in the Southeast Asian country with 9,223 valid projects in different fields, according to the Ministry of Foreign Affairs.

The KOCHAM representative praised Vietnam’s success in controlling the COVID-19 crisis and its readiness for the next leap.

Many South Korean companies are actively looking for investment opportunities in Vietnam.

However, KOCHAM is concerned that labor shortage would be a big hurdle to the investment flow from South Korea to Vietnam.

“The high cost of living, housing and childcare in the city are major hindrances to the return of workers after the pandemic," the KOCHAM representative said.

“In this regard, perhaps Ho Chi Minh City needs to actively make efforts to stabilize commodity prices, build low-cost housing/dorms for workers, and provide overall support for child care facilities.”

The chamber also argued that companies that have already operated here would be important advisors for newcomers.

"City authorities need to consider giving more incentives to existing foreign-invested companies as a shortcut to attract new investors," said the representative.

“More investors are expected to come to the city."

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