Exceptional model and special highlights ever drafted for law on special economic - administrative zones

By Thuy Quyen - Aug 19, 2017 | 06:22 AM GMT+7

TheLEADERAccording to the Ministry of Planning and Investment, the formation of law for special economic - administrative zones would create a legal basis for their establishment, development, and operation.

Exceptional model and special highlights ever drafted for law on special economic - administrative zones
A hotel in Phu Quoc island, which is expected to become an economic zone in 2020 (Photo: Internet)

Administrative-economic units would be established by other relevant projects to ensure a high synchronism. Foreign consultants could be involved.

There must be no discrimination between domestic and foreign investors regarding the policies on ensuring the business investment in special economic - administrative zones.

Regarding policies, investors are permitted to use international laws to adjust investment, commercial and civil contracts involving foreign elements. 

They can also choose to settle investment disputes with other individuals and organisations at a competent foreign court, Vietnamese agencies in foreign courts, foreign and international arbitration. 

Also, there would be an open policy on the distribution of some products, no investment restriction on foreign investors by Vietnam laws in the World Trade Organization (WTO) framework, some bilateral agreements on investment and the Free Trade Agreement (FTA).

Regarding the list of conditional business lines, the number of companies would be reviewed and shortened from 243 to 69 and then further reduced. 

Companies should meet the requirements related to national defence, national security, social order and safety, social morality and community health as prescribed in Clause 1, Article 7 of the Investment Law.

In terms of procedures, online enterprises registration would replace the traditional one. Also, the procedure process would be simplified. 

Enterprises would not be permitted to implement the projects under the investment-deciding competence of Prime Minister and provincial people’s committee anymore. Besides, investment registration certification of public-private partnership (PPP) and offshore investment projects would not be issued.

The maximum term for a land use right is 99 years for some prioritised industries. (Photo: Internet)

About the land use and property ownership rights, the maximum duration of a land use right is 99 years for some priority industries; domestic and foreign invested financial organisations can mortgage assets attached to land at foreign credit institutions. Also, foreigners are permitted to own houses, resort real estate via direct transfer from domestic individuals and organisations as well as resort real estate projects.

Moreover, investors are allowed to propose ways of implementing investment projects on the development of technical and social infrastructure systems by international practices and has not yet prescribed by the current law.

Besides, the domestic revenue surplus and land use fee in the administrative-economic zones could be utilised, and an infrastructure development company would be established to develop infrastructure and society, especially in the economic - administrative areas.

A policy called “open sky” allows the international air transport to combine multiple destinations one of which is set at the special economic - administrative zone to attract foreign tourists.

The special zones would only have administrative committee without people’s committee, and the lower level is administrative areas managing the state and supplying public services for individuals and organisations in the areas.

The power of the Government, Prime Minister, Ministries, Provincial people’s committee and special people’s council to the special economic - administrative committee.

Administrative committee and its chairman have the competence to decide and take responsibility for all fields such as state management of investment, business, budget, etc. in the special zones. Prime Minister appoints the chairman of the administrative-economic zone.

This is an exceptional model which has not regulated in the current laws yet. Accordingly, even though the special zones belong to provinces, duties and power of their administrative committee and its chairman are higher than provincial people’s committee. This model is close to the newest models of Tien Hai industrial zone (Vietnam), Shenzhen economic zone (China) and some other economic zones of South Korea.