Da Nang accepts risks, dares to think, dares to pilot free trade zones

On the afternoon of May 31, the National Assembly discussed in groups the draft Resolution of the National Assembly on the organization of urban government and piloting a number of mechanisms and policies for the development of Da Nang city. The content that many delegates were interested in was the policies on the pilot establishment of the Da Nang free trade zone.

Policy mechanisms must be more innovative and open.

Delegate Luong Van Hung (Quang Ngai Delegation) said that free trade zones are a new model in Vietnam, but in other countries they have been established for a long time and have brought efficiency to the economy, promoting the model of seaport ecosystems, logistics, and export processing activities.

“With its potential scale, this model is completely suitable for Da Nang. Integrating 3 production zones, seaport logistics and services. Thereby creating momentum for Da Nang to develop more smoothly,” emphasized the delegate of Quang Ngai province.

Therefore, he agreed that it is necessary to have preferential policies to develop the Da Nang free trade zone with incentives on tax, investment, land tax, significantly reducing costs, time and administrative procedures.

According to Mr. Hung, this pilot will bring a more favorable investment and business environment and replicate some provinces and cities with similar conditions.

Mr. Ha Sy Dong. Photo: Hoang Ha

Permanent Vice Chairman of Quang Tri Provincial People's Committee Ha Sy Dong suggested that the Government must have a separate project on free trade zones and cannot stipulate general regulations in the resolution.

“If we put it in general terms like this, how can we implement it later? Because such regulations are not consistent with current regulations and will cause conflicts. We need to separate them to build a project that clearly states which policy mechanism is superior and which law it is in,” Mr. Dong suggested.

He cited that Quang Tri also piloted the construction of the Lao Bao free trade zone in 2000, but by 2015, there were many shortcomings and loopholes, causing tax losses.

In addition, the Vice Chairman of Quang Tri province noted that up to now, 10 localities have requested special policies: "Is it because our legal system is too tight, is it restraining the autonomy of local governments, and has not promoted the role of autonomy and self-responsibility of local governments?"

Chairman of the Economic Committee Vu Hong Thanh. Photo: Hoang Ha

Citing experience from China, which currently has 22 free trade zones, and the first one in Shanghai has been continuously expanded, Chairman of the Economic Committee Vu Hong Thanh emphasized: "We should support this proposal for free trade zones."

Thinking that if there must be a separate project, when will there be a free trade zone model, Mr. Thanh suggested not to be perfectionist, just pilot the establishment and consider this as a place to test policy mechanisms. If any policy mechanism is effective, then replicate it.

The Chairman of the Economic Committee continued to cite the Shanghai free trade zone, established in 2013 and still under pilot status, which has undergone six adjustments, from the initial 28 km2 to 200 km2 and is considered very successful.

However, he said that the policy mechanism for the Da Nang free trade zone is "still too weak" because it mainly copies regulations from here and there that have been applied in industrial parks and economic zones.

“If the policy mechanisms are like this, will they be more attractive than the free trade zones right next to us? I still want to pilot it, but the policy mechanisms must have something more innovative and open,” Mr. Thanh suggested.

Da Nang does not rely on resources requested from the Central Government.

Da Nang Secretary Nguyen Van Quang also emphasized that without breakthrough and specific mechanisms, Da Nang will not achieve the goals set by the Politburo and Central Committee resolutions.

Stating that the development space, especially land space, has certain limitations, Mr. Quang said that the city is oriented towards green development, sustainable development based on science, technology and innovation, and implementing new policies in attracting investment.

These are new driving forces in green development as well as environmental preservation of the city, serving larger goals such as sustainable tourism development.

Da Nang Party Secretary Nguyen Van Quang. Photo: Hoang Ha

According to Mr. Quang, among the 5 new policies, there are 2 policies that are worth paying attention to; in which, Da Nang boldly proposed and was approved by the Politburo to pilot the commercial area.

“This is one of the breakthroughs and also the daring to think and act in testing a model that has been confirmed by the world but has no precedent or practice in Vietnam. Da Nang determined that this is risky but accepts it. If successful, this will be the foundation for replication throughout the country, but the city will bear the risks,” said the Da Nang Secretary.

Another point is that Da Nang aims to develop science, technology and innovation. This is one of the new points compared to the policies of many other localities.

In addition, the city also wants to attract resources for the development of the semiconductor and artificial intelligence industries. On that basis, there will be a mechanism to attract large technology corporations in the world such as Intel, Qualcomm, Ampere, ARM, etc.

"Currently, big investors have raised the issue, just waiting for this policy mechanism to invest in the city," said the Secretary of Da Nang.

A very new point compared to many other localities, Mr. Quang said, is that Da Nang does not rely on resources requested from the Central Government but builds policies to be proactive, self-sufficient in the city's resources and mobilize social resources for investment and development.

“We are determined to be self-reliant and autonomous in implementing these policies. If successful, this will be the foundation for other localities and replicated across the country,” Mr. Quang shared.

In the previous review report, Chairman of the Finance and Budget Committee Le Quang Manh said that the majority of the Committee's opinions believe that the pilot establishment of a free trade zone is a major policy with sufficient political and legal basis.

This is a breakthrough policy, a political determination, a spirit of innovation, creativity, daring to think, daring to do of Da Nang City and the Government in applying the world's advanced development model; if successfully implemented, it will create a premise to promote the socio-economic development of Da Nang City and the whole region.

The pilot is meant to lay the foundation for the formation of new policies in the process of operating a socialist-oriented market economy in our country; at the same time, there is a choice of breakthrough fields to focus on developing, such as semiconductor microchips and artificial intelligence.

This is also a trial step, learning from experience while doing it to improve. Therefore, the majority of opinions in the Finance and Budget Committee agree with the policy of piloting the establishment of a Free Trade Zone in Da Nang.

However, the auditing agency also noted that this is a big issue, not only economic in nature but also related to national defense, security, order, social safety, and associated with institutions and the legal system.

To effectively implement this policy of the Politburo, the Finance and Budget Committee proposed that the Government direct a review to clearly and specifically stipulate in the draft resolution on a number of contents.

Empowering Da Nang to have policies to attract semiconductor industry experts

The Government proposes to have a policy to support income and accommodation costs for experts and scientists working in the field of semiconductors and artificial intelligence in Da Nang city.

Establishing a free trade zone to attract large investors and attract tourists to spend money

Da Nang has all the conditions and advantages to pilot the establishment of a free trade zone to attract large domestic and foreign investors to invest and do business; and attract tourists to spend money and buy goods.

Source: https://vietnamnet.vn/da-nang-chap-nhan-rui-ro-dam-nghi-dam-lam-thi-diem-khu-thuong-mai-tu-do-2286514.html