The International Finance Corporation needs a cautious approach | Business
London-based business think tank Z/Yen Group has already created the Global Financial Center Index (GFCI) after consulting experts, such as international investment banks, fund managers and CEOs, to determine the main factors of evaluation of the Vietnamese IFC.
Speaking at a recent workshop, Mr. Johnathan Hanh Nguyen, Chairman of the Board of Directors of Imex Pan Pacific Group (IPPG), gave several tips on non-traditional measures that could make Ho Chi Minh City dream to become an IFC come true. The good news is that although his advice has not been made public or evaluated by any organization, Mr. Hanh Nguyen is a successful and experienced businessman and is trusted by American consultants who have designed highly feasible projects that could help the city. become a leading IFC.
Mr. Hanh Nguyen said that the international consultants want to enable Z/Yen Group to rank Vietnam IFC among the top 50 in the world by 2030 and the top 20 by 2045. It is still unclear how this will be possible, but he says American investors would be willing to bring Disneyland to Ho Chi Minh City with around 25 million visitors a year. Mr. Hanh Nguyen also said Vietnam IFC would have other features like a casino, sports betting center and duty-free shops.
Mr. Nguyen provided several detailed ideas that could give relevant authorities an in-depth understanding of what Vietnam’s IFC might look like in the future. When people discuss the development and competition of Vietnam’s IFC, there are always potential biases and shortcomings that officials should be aware of when discussing the findings of the Z/Yen Group’s investigation for GFCI, or any opinion of experts, investors or institutions.
Experts and consultants know that the opinions of experts would be used to influence politicians and decision makers. For example, they may say that extreme legal taxes or even no taxes, or simple rules would be the key factors in developing a successful CFI, although this may not be important in their day-to-day business decisions. They may also say that investing in amusement parks and casinos would help an IFC make handsome profits, even though they really think top priority should be given to building class schools and hospitals. world. The national and international talents involved in the creation of the IFC must have prioritized world-class academic and health services for themselves and their families, rather than gambling in casinos and racetracks.
Even when consultants and experts sincerely and wholeheartedly wish to contribute meaningfully to IFC’s development, they do not always accurately identify or acknowledge the real reasons for their actions. For example, some people who really need marriage advice often turn to experts or watch popular dating game shows on TV that deal with marriage matters. There is plenty of evidence that the behavior of these experts is actually very different from descriptions in game shows or forums.
Decide with caution
It is certainly essential to seek the advice of experts, investors and prestigious international organizations for the establishment of IFC Vietnam. Yet those responsible must have broader views. In addition to the GFCI, many surveys conducted by international organizations could recommend crucial factors to make it a top IFC. Survey results overlap and often change over time, but overall, at least for Vietnam’s IFC, there are some elements, no matter how outlandish, that need to be weighed and taken into account.
For example, it is extremely essential to have high-level financial experts, to follow sufficient compliance with laws, to have great respect for proper institutions, and to pass reasonable taxes. Other elements include good quality basic infrastructure, high quality support services, low operating costs and a high degree of liberalization of capital flows in and out of the country. These factors indicate that it is now impossible to think of a high-end IFC with high-rise buildings.
Moreover, it is impossible to rely heavily on casinos or amusement parks for the public good. In the case of the recent non-traditional plan suggested by an experienced investor for Vietnam IFC’s development in Ho Chi Minh City, it is crucial to make wise decisions to avoid creating a white elephant that is difficult to monitor in the long term. . Such a situation will only become burdensome in terms of costs and responsibilities, as it will be increasingly expensive to raise, but difficult to eliminate or maintain.
Financial experts, investors and luxury brands will all have diverse approaches to establishing a Vietnamese IFC. However, in choosing to develop a national IFC, headquartered in Ho Chi Minh City, one must avoid the pitfalls of reaping benefits only for interest groups.