VN’s hopes three SEZs to attract billions of USD in investment

Last update 12:00 | 25/08/2017
VietNamNet Bridge – PM Nguyen Xuan Phuc said a special legal framework with outstanding preferences is needed to develop three special economic zones (SEZs) — Van Don in Quang NInh, Bac Van Phong in Khanh Hoa and Phu Quoc in Kien Giang.vietnam economy, business news, vn news, vietnamnet bridge, english news, Vietnam news, news Vietnam, vietnamnet news, vn news, Vietnam net news, Vietnam latest news, Vietnam breaking news, SEZ, van don, Nguyen Chi Dung

MPI Minister Nguyen Chi Dung, said that over the last 25 years of development of IZ, EPZ, hi-tech zone and EZ models, problems have surfaced — incentives are not sufficiently competitive; administrative procedures are not simple enough; and infrastructure and labor force cannot satisfy requirements.

Meanwhile, Vietnam economy has shown signs of a slowdown. Competitiveness is low and exploitation of natural advantages and resources is reaching a critical level. Vietnam’s investment climate is losing some of its attractiveness due to strong international competition.

Vietnam hopes that SEZs, located in special positions and run with special preferences, will become magnets for investments, thus helping economic development.

Regarding investment incentives for investors in SEZs, Dung said the incentives would be more generous than those stipulated in current laws and international commitments to be made by Vietnam.

In tax policies, for example, Vietnam may allow import/export tax exemptions, zero percent VAT and reductions in other taxes.

Vietnam hopes that SEZs, located in special positions and run with special preferences, will become magnets for investments, thus helping economic development.

SEZs may be allowed to retain all their revenue for certain periods, or the required contributions to the central budget would be adjusted to help develop essential infrastructure systems in the zones.

Asked about ‘special financial preferential conditions’, Dung said that SEZs may have separate monetary institutions, banks and types of transactions suited to international practice.

The Vietnam dong will still be the official currency in circulation, but some convertible currencies may be allowed. There would be a separate financial center under the control of SBV.

Dung also mentioned a special policy on land use rights to be specifically applied to the SEZs. Investors may receive land allocated for up to 99 years and many incentives for the leasing period and rental prices.

Dung said the State estimates that it would be able to collect $1.9 billion from tax and fees from Van Don SEZ, and $2.1 billion from land.

Van Don’s contribution to Quang Ninh province’s GRDP is hoped to increase to 5.2 percent by 2020 and 7.7 percent by 2030 when businesses create added value of $9.7 billion from 2021-2030.

In Bac Van Phong, businesses are expected to create added value of $10 billion in 2017-2030, while the income per capita would increase to $4,000 by 2020 and $9,500 by 2030.

As for Phu Quoc, the income per capita is expected to reach $5,300 by 2020.

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