Vietnam to establish international financial center in Da Nang

Getting your Trinity Audio player ready...

Vietnamese authorities are targeting regional and international digital asset dominance following the passage of a new law recognizing digital currencies.

The latest push by the country is a proposed financial center to compete with regional heavyweights in the Asia Pacific. The Ministry of Finance is collaborating with relevant ministries to draft a bill for the National Assembly to establish a financial center.

The report reveals that Vietnamese authorities have picked Da Nang to host the incoming financial center. Sources with knowledge of the matter say Da Nang was chosen for its growth potential and strategic advantages.

Da Nang is between Hanoi and Ho Chi Minh City in central Vietnam. Furthermore, a strong tourism industry, a deep-sea port, and an international airport are supporting the push for the launch of an international financial center in Da Nang.

“We believe Da Nang can become a powerful new international financial hub,” said Le Hoang Phuc, Director of Da Nang’s Semiconductor and AI Center (DSAC).

The National Assembly Resolution 136 has given the green light for Da Nang to experiment with “special mechanisms” in a sandbox model. With the backing of the highest law-making body, the city has welcomed a pilot project allowing tourists to make stablecoin payments.

For now, tourists are limited to using USDT to pay for goods and services, with city officials keen to expand the offering after initial rounds of evaluation.

However, the draft regulation will contain strict guardrails for digital asset service providers, mandating them to comply with global Know Your Customer (KYC) and Anti-Money Laundering (AML) rules. Furthermore, service providers in the incoming financial center will reserve a compensation fund for users in the event of black swan events like cybersecurity breaches that align with international best practices.

Vietnam makes national push for digital assets

In mid-June, Vietnam passed a new legislation that formally recognized digital assets. Vietnam’s Ho Chi Minh has earmarked a portion of its national budget for blockchain, joining the growing list of regional initiatives.

The metrics for adoption are largely impressive, with 21% of the Vietnamese population holding digital assets. Outside of blockchain, authorities are pursuing artificial intelligence (AI) and other emerging technologies, urging SOEs to embrace digitization.

Taiwan prepaid card and digital wallet market to soar to $14.94 billion in 2029

However, the report anticipates a projected 5.2% CAGR from 2025 to 2029, representing a market valuation of $14.94 billion before the end of the decade. By the end of the year, the market will grow to $12 billion in a run fueled by a raft of factors.

The biggest growth driver is changing consumer habits among Taiwan’s residents. As smartphone penetration reaches its highest levels, a surge in mobile-first payments incorporating prepaid cards and digital wallets is mainstream.

Analysts are stressing the trend of contactless payments after the COVID-19 pandemic, while an e-commerce and food delivery boom is tipped to contribute to the sector’s CAGR. Furthermore, Taiwan’s gamification and cashback payments culture is backing the rise of digital wallets in the island nation.

Outside consumer habits, a raft of government agencies also contribute to the rising prepaid card and digital wallet adoption. Taiwan’s Financial Supervisory Commission (FSC) is advancing mobile payment and e-money adoption by issuing licenses to a wider class of service providers.

The country’s real-time payment infrastructure and integration, as well as plans to roll out a national digital wallet by the end of 2025 can trigger growth metrics.

By 2029, the report tips LINE Pay to hold the biggest share of the digital wallet space, followed by Apple Pay (NASDAQ: AAPL) and Google Pay (NASDAQ: GOOGL). For prepaid card providers, EasyCard and iPASS will lead the cohort, driven by their wide application across retail, hospitality, and transport segments in the economy.

Bank-issued prepaid cards will contribute to the slice, while corporate card utilities for customer rewards and employee incentives are projected to add volume to the sector.

Digital assets to power Taiwan’s sector growth

While not mentioned in the report, digital assets are expected to support Taiwan’s digital wallet growth. A new digital asset law and the influx of global service providers signal ecosystem growth.

Furthermore, establishing strict AML rules sets the foundation for the country’s integration of digital assets into key sectors of the global economy. Taiwan also embraces artificial intelligence while striking key regional and international partnerships to improve its local payment landscape.

Watch: IoT, IPv6 and the future of monetization