The scheme for the construction of the Finance – Banking Centre (FBC) in Hanoi has been presented to investors for their opinions. This centre may be built on up to 25ha of land, with investment in infrastructure facilities up to US$500mil.

“We hope FBC will become a ‘Wall Street’ of Hanoi and Vietnam. And we can’t be long in building it,” said Nguyen Quoc Trieu, chairman of the Hanoi People’s Committee.

FBC – top priority

“Our idea is building a specialised centre for enterprises and investors in the finance and banking area. This centre will be situated in one of the best areas in Hanoi: the new West Lake residential area. A detailed plan is still being drawn up but I can assure you that it is a top priority,” said Trieu Dinh Phuc, director of the Hanoi Department of Planning and Investment.

The department is calling for Vietnamese and foreign investors to contribute their opinions about the construction of a preferential zone for the FBC for submission to the prime minister for approval.

Quach Duc Phap, director of the Tariff Police Department under the Finance Ministry, said that a special tax policy for the FBC was under consideration, but ‘it is sure that this will be one of the sites offering preferences at the highest levels’.

The FBC will be among Hanoi’s projects calling for foreign investment from 2005 to 2010, in the forms of wholly foreign owned or joint venture. It is considered an example project of the capital city in carrying out the open-door policy for integration.

How about feasibility?

It is still too early to think of the success of the FBC project but designers believe in the feasibility of this project.

A survey conducted by the Hanoi Department of Planning and Investment shows an optimistic outlook, with 80% of participants having positive comments on the role and significance and necessity of the FBC. They expect this centre to act as a transparent, effective and realisable financial infrastructure in the eyes of investors, meeting the demands of integration.

As many as 51% of investors participating in the survey said that they would invest in the FBC. Some big investors like the Hong Kong and Shanghai Banking Corporation (HSBC) and VinaCapital are interested in the project and have expressed their support to Hanoi.

However, Hanoi Mayor Nguyen Quoc Trieu said that the construction of the FBC was a ‘new and difficult’ job because Vietnam did not yet have any similar centre as precedent. He said that Hanoi needed time to prepare; firstly, by the comprehensive development of its market in general and its finance and banking market in particular.

“We have been preparing quite well for this project. In the past several years, Hanoi’s GDP has continuously grown at over two digits (over 10%/year). The finance-banking technical system has been improved quickly. The ASEAN Free Trade Area (AFTA) has begun to run. The door to the World Trade Organisation has half-opened,” Mr Trieu said.

Mayor Trieu also stressed that Hanoi has available, qualified human resources to meet the needs of the FBC.