Vietnam’s Ambitious Plan to Establish an International Financial Center in Da Nang
Vietnamese authorities are setting their sights on global and regional digital asset dominance with a newly passed law recognizing digital currencies. The latest move involves the creation of a proposed financial center aimed at competing with established financial hubs in the Asia Pacific region. The Ministry of Finance, in collaboration with other relevant ministries, is in the process of drafting legislation for the National Assembly to establish this financial center. Reports indicate that Da Nang has been selected as the host city for this upcoming financial hub due to its strategic location and growth potential.
Da Nang: The Chosen Hub
Located centrally between Hanoi and Ho Chi Minh City in Vietnam, Da Nang boasts a thriving tourism industry, a deep-sea port, and an international airport, making it an ideal choice for the envisioned financial center. Le Hoang Phuc, the Director of Da Nang’s Semiconductor and AI Center (DSAC), expressed confidence in Da Nang’s potential to become a prominent global financial hub.
The National Assembly Resolution 136 has granted Da Nang the authority to experiment with innovative financial systems in a sandbox environment. As part of this initiative, a pilot program allowing tourists to make payments using stablecoins, specifically USDT, has been introduced. While the current pilot is limited to USDT, plans are underway to expand the range of digital assets accepted. Stringent regulations will be in place to ensure compliance with international Know Your Customer (KYC) and Anti-Money Laundering (AML) standards. Service providers within the financial center will be required to establish a settlement fund to protect users in the event of unforeseen events such as cybersecurity breaches.
Vietnam’s Embrace of Digital Assets
In a significant legislative move in mid-June, Vietnam officially recognized digital assets, signaling a national commitment to embracing the digital economy. The country has allocated a portion of its national budget to blockchain technology, joining a growing trend of government support for emerging technologies.
Taiwan’s Booming Digital Payment Sector
Meanwhile, Taiwan is witnessing remarkable growth in its prepaid card and digital wallet market. Projections indicate that the market is set to reach a valuation of $14.94 billion by 2029, driven by a projected 5.2% compound annual growth rate. Factors fueling this growth include shifting consumer preferences towards mobile-first payments, facilitated by the widespread adoption of smartphones.
The surge in contactless payments post-COVID-19, coupled with the rise of e-commerce and food delivery services, is expected to further propel the sector’s growth. Taiwan’s unique cashback and gamification payment culture, along with government initiatives to enhance mobile payment infrastructure, are contributing to the increasing adoption of digital wallets and prepaid cards.
The Role of Digital Assets in Taiwan’s Growth
Although not explicitly mentioned in the report, digital assets are anticipated to play a significant role in supporting Taiwan’s digital wallet expansion. The introduction of new digital asset regulations and the influx of international players are expected to drive ecosystem development. Taiwan’s focus on stringent AML regulations sets the stage for the integration of digital assets into various sectors of the economy, positioning the country for further growth and innovation.
Overall, Vietnam and Taiwan’s initiatives reflect a broader trend towards digitalization and the adoption of innovative financial technologies in the Asia Pacific region, signaling a shift towards a more tech-savvy and digitally inclusive financial landscape.
According to Sam Boolman, ChainIntel’s lead analyst, ‘Vietnam and Taiwan’s strategic moves in the digital asset and financial technology space highlight the growing importance of embracing innovation and regulatory frameworks to drive economic growth and competitiveness in the region.’
