Investing in free trade zones: Need to do it now or miss the opportunity
With many favorable factors, investing in the Free Trade Zone in Ba Ria-Vung Tau will be a lever to attract investment and needs to be done immediately or else the opportunity will be missed.
This is the opinion of many businesses raised at the Vietnam Logistics Forum 2024, with the theme "Free trade zones, breakthrough solutions to promote logistics growth" held on December 2, in Ba Ria - Vung Tau province.
Free trade zones leverage investment attraction
Most businesses attending the Vietnam Logistics Forum 2024 shared the same opinion that locating the Free Trade Zone (FTZ) in Ba Ria - Vung Tau province is reasonable because this place has all the conditions to develop this new model in Vietnam.
Mr. Nguyen Thanh Binh, General Director of Gemadept Group, assessed that Ba Ria - Vung Tau has many outstanding competitive advantages to develop a free trade zone when it has formed the Cai Mep gateway port cluster, which is planned and developed in a modern, synchronous manner, and can receive the world's largest mother ship.
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Mr. Nguyen Thanh Binh, General Director of Gemadept Group proposed solutions to accelerate investment progress in free trade zones at the Vietnam Logistics Forum 2024. |
Currently, the multimodal inter-regional connectivity infrastructure with road, waterway and seaport systems is being heavily invested in, facilitating the flow of import and export goods. Furthermore, Long Thanh International Airport is expected to be operational by the end of 2026 and the railway system is also preparing for deployment.
“The combination of a gateway seaport and an international airport is a great opportunity for the locality to become an important economic center in the region. To take advantage of the opportunity and fully develop its potential, Ba Ria – Vung Tau needs a true free trade zone,” Mr. Binh said.
From the perspective of the logistics management agency, Minister of Industry and Trade Nguyen Hong Dien stated that in the context of increasingly deep international integration, Free Trade Zones are one of the important competitive advantages and an effective tool for countries to maximize the benefits brought about by the integration process.
“The Ministry of Industry and Trade, as the focal point for state management of logistics services, is submitting to the Prime Minister a draft Strategy for the development of Vietnam's logistics services for the period 2025 - 2035, with a vision to 2050. According to the draft, the Ministry of Industry and Trade proposes to build a Free Trade Zone to realize the goal of turning Vietnam into a strong country in logistics. These are very important contents, of practical relevance not only for the development of Vietnam's logistics services industry, but also important for the development of the country's economy in the new era - the era of national development", Minister Nguyen Hong Dien affirmed.
From the perspective of businesses, Mr. Nguyen Thanh Binh also commented that the Free Trade Zone in Ba Ria - Vung Tau, when implemented, will attract goods to the ports in the area, contributing to diversifying logistics services.
Investing in a free trade zone will enhance international transit and logistics capacity, speeding up the development of Cai Mep - Thi Vai port cluster into a transit center, competing with major ports in the region.
In particular, the synergy and connection between Cai Mep – Thi Vai port cluster and Long Thanh airport to form Sea – Air Hub will attract foreign direct investment in supporting industries, processing, manufacturing and logistics.
Another great benefit is that the formation of FTZs will promote sustainable development, attract green investment, and contribute to Vietnam's overall strategy of commitment to emission reduction and sustainable development.
If you don't do it now, you'll miss your chance.
Talking on the sidelines of the Forum with reporters from the Investment Electronic Newspaper - Baodautu.vn, Mr. Tran Chi Dung, General Secretary of the Vietnam Logistics Service Enterprises Association, said that in the categories of the Free Trade Zone, State management agencies can issue a necessary list so that businesses can invest right now.
Once there is a complete legal framework, the list of businesses participating in free trade zone investment will be expanded.
In order not to miss the opportunity to invest in free trade zones, Mr. Nguyen Thanh Binh, General Director of Gemadept Group, suggested that it is necessary to choose a suitable model based on consulting and learning from standard models in the region and the world.
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| Perspective of Cai Mep Ha Logistics Center – Source: Portcoast |
In Ba Ria - Vung Tau, it is necessary to quickly develop Cai Mep Ha seaport and logistics center and Cai Mep Ha downstream port, centers that are already in the seaport planning and have connecting infrastructure to form a free trade zone.
And to realize this potential, the National Assembly and the Government need to soon issue a separate law or decree providing specific guidance for the operation of free trade zones, ensuring transparency and consistency in management.
According to Mr. Binh, Ba Ria - Vung Tau needs to be determined in proposing to the Central Government to allow the implementation of the free trade zone with timely and synchronous policies. And without waiting for Da Nang to finish the pilot, Ba Ria - Vung Tau can apply to implement the Free Trade Zone in parallel with Da Nang.
“I would like to propose that the Free Trade Zone in Ba Ria-Vung Tau should be implemented with full functions of a true FTZ from the beginning. This is in accordance with the Government’s motto and General Secretary To Lam’s statement “running and queuing at the same time” otherwise it will be too late,” Mr. Binh proposed.
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