Over the last 20 years of establishment and development, the model of industrial and economic zones is now unable to fulfil the potential of Vietnam. Therefore, a new model with outstanding advantages should be quickly developed to attract capital. In answer to this demand, the Special Administrative - Economic Zone Act is being devised.
According to the Ministry of Planning and Investment, local authorities have not yet acted as the focal point for the "one-stop" administrative reformation. The investment incentives for economic zones have been noticed but they are not appealing enough. The mobilization of funds for infrastructure development in economic zones is difficult.
"In order to promote the role and productivity of industrial and economic zones in socioeconomic development, new economic zone models should be devised to attract investors” - the Ministry confirmed.
From the international experience and the similar models that have been developed in 13 countries and regions around the world, the drafting board of the Special Administrative - Economic Zone Act have devised new models that can be divided into three levels with different policies.
Among three levels, level Three is the highest with an independent system of economic and administrative institutions. The proposed models currently being piloted in Van Don (Quang Ninh), Bac Van Phong (Khanh Hoa) and Phu Quoc (Kien Giang) are level One.
The drafting board also regards the proposed special administrative-economic model for Vietnam as a combination of Chinese and Korean models. This can be considered as a comprehensive socioeconomic zone which adopts a specific legal framework to achieve its own development objectives.
The drafting board said that countries and regions had adopted a variety of specific mechanisms to promote this model such as budget support, taxes and land rent reduction, visa exemption,... Additionally, the authorities of special economic zones have strongly promoted the “one-stop” administrative reformation.
