It is highly likely that the draft Law on Special Administrative-Economic Units will not be approved in the next meeting session of the National Assembly in November this year.
After the National Assembly of Vietnam halted passing the draft law on Special Economic Zones, almost all real estate transactions in Van Don and Bac Van Phong froze with investors and estate agents withdrawing from the market.
According to Dr. Nguyen Duc Thanh, the current draft law on Special Administrative-Economic Units has failed to do the single most important thing which is to create breakthroughs in the business environment and administrative institutions.
The recently overheated matter of a land lease term of 99 years applying at special economic zones on a trial basis has been affirmed to be shortened but the draft law on Special Administrative-Economic Units remains not to be approved in this plenary session of the National Assembly.
Economist Pham Chi Lan said that providing incentives for too many fields in special economic–administrative zones would increase the tax inequality for businesses.
On May 23, the draft Law on Special Administrative and Economic Zones was discussed by the National Assembly, in which the casino business service in the Units is expected to enjoy a special consumption tax incentive of 15 percent for the first ten years if approved.
The Law on Special Administrative and Economic Units is one of the highlighted issues put high on agenda in the fifth working session of 14th National Assembly.
The latest draft law of the special economic zones has been amended based on the opinions of several members of the National Assembly to reduce incentives for several investment projects including casino, tourism and entertainment services.
Two options for establishment of the organization model of local government based on the draft Law on Special Administrative-Economic Units (hereinafter referred to as special economic zones - SEZs), were submitted to the National Assembly for review, thereby provoking controversy.
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Preferential policies related to land, land-attached assets in the draft Law on Special Administrative-Economic Units (hereinafter referred to as special economic zones - SEZs) has provoked different controversies.
Based on the nine criteria categories set forth in the draft law on special administrative-economic zones (SEZs), the incentives offered to Van Don, Bac Van Phong and Phu Quoc are deemed to be better than those in China, South Korea and Singapore.
The draft law on special administrative-economic zones with mechanism and policy breakthrough is attracting the attention of investors, especially foreign investors in the field of real estate.
If the Ministry of Finance (MoF)’s draft law, which amends and supplements five tax laws is adopted, it will have serious impacts on beverage producers.
The draft Law on special administrative-economic zones (special zones) is important to attract and encourage large domestic and foreign investors to participate in economic development.
