City of London, VIFC-HCMC seek cooperation to connect global capital

The assistance will focus particularly on funding infrastructure development and the green transition, Dame Susan Langley, Lord Mayor of the City of London, said on Tuesday.

Langley made the statement during a meeting hosted by the Ho Chi Minh City administration for a British delegation, including herself, British Ambassador to Vietnam Iain Frew and British Consul General in Ho Chi Minh City Alexandra Smith.

She emphasized that the City of London was ready to provide support and advice to Vietnam, including legal advice, capacity building, professional training and the sharing of international practical experience.

She said the City of London wanted to become a trusted partner of Ho Chi Minh City in developing VIFC-HCMC.

To attract international investors, VIFC-HCMC needs a clear and predictable legal environment that is applied consistently, Langley said.

She also said VIFC-HCMC should position itself as a green and sustainable finance hub from the outset by adopting international standards and aligning with Vietnam's green and sustainable development goals.

According to Langley, London has extensive experience in mobilizing global capital and can help Ho Chi Minh City connect with long-term funding, large institutional investors and capital markets to support infrastructure development.

Addressing the meeting, deputy chairman Nguyen Cong Vinh of the Ho Chi Minh City administration appreciated the UK's support for the development of VIFC-HCMC and thanked the British government, embassy, consulate, the City of London, TheCityUK and the British financial community for their support since the center was established.

Vinh said VIFC-HCMC has made rapid progress, with core institutions for governance and dispute resolution established in February and a 13-member strategic advisory council of domestic and international experts formed in July.

The center is now moving toward developing specific financial products, starting with municipal and project bonds to meet funding needs for the city's metro system, seaports, logistics infrastructure and other strategic projects, he added.

Vinh proposed establishing a regular cooperation mechanism between the City of London and VIFC-HCMC, with a concrete action program focusing on products and transactions that can be implemented, particularly those aimed at mobilizing long-term capital for urban infrastructure and the green transition.

He urged the City of London and VIFC-HCMC to exchange experience and connect partners in areas including international bonds, project bonds, infrastructure investment funds, fintech and regulatory sandboxes.

The two sides should also promote cooperation in insurance and risk management for aviation, maritime and infrastructure projects, he said.

Nguyen Huu Huan, deputy chairman of the VIFC-HCMC executive agency, said Vietnam would need a huge amount of capital to achieve its goal of double-digit economic growth, while domestic capital markets and the banking system face challenges.

The center therefore needs to become a new capital channel for the economy, focusing on technology, artificial intelligence, semiconductors and quantum technology, while also developing sectors such as aviation and maritime finance, Huan said.

According to Huan, VIFC-HCMC is prioritizing bonds, international investment funds, family offices and fintech, while the city authorities will introduce a regulatory sandbox for fintech companies and innovative businesses.

VIFC-HCMC has signed a memorandum of understanding with the London Stock Exchange and is in discussions with the London Metal Exchange on developing activities at the center, Huan said.

British Ambassador Iain Frew said infrastructure development and VIFC-HCMC were among the important areas of UK-Vietnam cooperation.

Infrastructure finance can help Vietnam disburse public investment, carry out projects on schedule and accelerate implementation, he said.

He cited the next phase of metro line No. 1 in Ho Chi Minh City as an example, saying UK funding and financing could help speed up project implementation and equipment procurement.

The UK also wants to cooperate with Vietnam in education, with a British university planning to establish a campus in the country, Frew said.

The two countries also hope to improve education quality and English-language skills through training, teaching and testing programs, he added.

Consul General Alexandra Smith said the City of London and VIFC-HCMC should continue exploring specific financial products and sectors to be developed at the center.

Based on Ho Chi Minh City's proposals, the two sides will initially work toward establishing permanent focal points, organizing thematic discussions, preparing an international capital-raising dossier for a suitable project and designing a fintech support program linked to risk supervision, she said.