HOW THE URBAN DEVELOPMENT LAW CHANNELS CAPITAL FROM VIFC INTO THE REAL ECONOMY

On August 24, the 16th National Assembly officially passed the Urban Development Law. In this law, Article 24 specifically outlines mechanisms and policies to promote the Viet Nam International Financial Center. This is seen as a crucial step to complete the legal framework for Resolution 22 and the eight previously issued decrees, paving the way to channel international capital flows into Vietnam.

On the Economic Forecast program of Ho Chi Minh City Television (HTV), Assoc. Prof. Dr. Nguyen Huu Huan, Vice Chairman of the Executive Board of the Viet Nam International Financial Center in Ho Chi Minh City, stated that a major breakthrough of the Law is allowing the City People's Council to issue international bonds in foreign currencies to the global market. This will provide additional capital for key infrastructure projects such as the metro, ring roads, and seaports, while also reducing pressure on the domestic banking system.

At the same time, the scope of financial services provided by VIFC members will be expanded to the entire economy, no longer limited by the Center's geographical boundaries. This helps domestic businesses, including small and medium enterprises (SMEs), access international capital more easily.

Right after the Law was passed, the Ho Chi Minh City People's Committee met with the Executive Board of the Viet Nam International Financial Center in Ho Chi Minh City to urgently draft implementation resolutions. They also created a list of infrastructure and private projects to connect capital supply and demand, getting ready for when the Law officially takes effect on October 1. To put the mechanisms of the Urban Development Law into practice, VIFC-HCMC is quickly completing its financial ecosystem. The goal goes beyond just issuing primary bonds; it involves building guarantee institutions, credit rating agencies, and secondary market platforms. Connecting with international markets is expected to increase liquidity and strengthen the confidence of global investors when choosing Vietnam as an investment destination.

On the other hand, the capacity to absorb capital requires domestic businesses to raise their standards. To access capital from VIFC-HCMC, local companies need to proactively adopt international corporate governance and accounting standards, as well as improve their payment capacity and creditworthiness. In particular, green finance and transition finance are opening up a notable way to raise capital. This requires businesses to gradually shift from traditional economic models to green and sustainable ones to capture this strategic resource.

Along with expanding room for growth, risk management is prioritized during the market's initial stage. Real-time monitoring technologies will play an important role in increasing supervision efficiency, ensuring monetary security, and limiting related risks. A transparent and strictly controlled operating environment is the core foundation for building long-term trust with global financial institutions.