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.
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.
Vietnam National Assembly and the Government should carefully review tax incentives in future special economic zones to avoid budget losses and negative socio-economic impacts, according to Nguyen Thu Huong, senior manager of Oxfam.
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.
Local authorities are enforcing orders to temporarily cease the transfer, conversion of land use purpose and modification of land ownership after a dramatic increase in land prices in the future special economic zones (SEZs) such as Van Don, Phu Quoc and Northern Van Phong.
Former Deputy Minister of Natural Resources and Environment said that the allocation of land to investors in the special economic zones (SEZs) with a longer period of time will create more valuable real estates.
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.
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Prime Minister Nguyen Xuan Phuc has ordered the Ministry of Planning and Investment (MPI) to clarify matters related to the personnel, use of seals and meeting regulations of the National Steering Committee for the construction of special administrative-economic zones.
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.
According to Tran Duy Dong, Director General of the Ministry of Planning and Investment's Economic Zones Management Department, it must be more determined in developing the special economic zones (SEZs) with experiences being drawn during the progress. If there is no action, no result would be produced.
Sun Group will invest in a high-end tourism complex, which can operate a casino, at Van Don with a total area of 2,500 hectares and the total investment of over US$2 billion, of which about US$312.5 million comes from the investors.
