With the transit port, Can Gio needs to be oriented to become a free trade zone that widely connects regions and diversifies goods, according to the Deputy Director of Ho Chi Minh City Development Research Institute.
The proposal was made by Dr. Truong Minh Huy Vu, Deputy Director of Ho Chi Minh City Development Research Institute, at the workshop "Connecting the chain towards sustainable economic development in Can Gio district" on November 24.
Dr. Truong Minh Huy Vu speaks at the conference on November 24. Photo: An Phuong
According to Mr. Vu, Can Gio should not become a duty-free zone (export processing zone model) because it will be fragmented and small-scale, but should become a free trade zone (FTZ). This will help connect part of Dong Nai, Long An, Tien Giang, goods will be more diverse.
"The concept of free trade zones already exists in the world, defined, used and mentioned by shipping lines and is immediately understood. We should not create a new name," said Mr. Vu. According to him, no matter which form is chosen, it needs to be approved by the National Assembly and the Government, so we should choose the model that brings the best development to Can Gio port.
FTZs are formed in many countries such as China, Indonesia, Philippines, Malaysia... When investing here, businesses enjoy many benefits such as not having to pay import and export taxes; being a springboard to access the market; convenient transportation, logistics services; connecting other businesses in and around the FTZ.
Vietnam currently has no free trade zone. Recently, Hai Phong started the project of Investment, Construction and Business of Infrastructure of Lach Huyen Free Trade Zone - Logistics and Industry. This is considered a model for the future.
Part of Can Gio district. Photo: Quynh Tran
Mr. Tran Quoc Thang, Director of Deloitte Vietnam Tax Consulting Co., Ltd., said that FTZ will help reduce customs clearance time and storage of goods at ports. There is currently a wave of investment shifting from China to Vietnam in the semiconductor and supporting manufacturing industries. What investors are interested in is not only port infrastructure but also non-tariff zones.
"Tax control policies must be directed towards creating conditions for businesses to quickly circulate goods, which will help the locomotive of Ho Chi Minh City develop," said Mr. Thang.
Meanwhile, Mr. Nguyen Viet Dung, Deputy General Director of Port Design and Marine Engineering Consulting Joint Stock Company, said that initially, the project research team raised the issue of establishing an FTZ in Can Gio. However, after visiting and learning from experiences in Hai Phong port and consulting Vietnam's legal documents, the unit realized that using the term "free trade zone" would encounter difficulties if there were any adjustments later.
The consulting unit believes that in reality, international transit ports are all linked to free trade zones with areas ranging from several thousand to several tens of thousands of hectares. Thus, not only Can Gio but also Phu My of Vung Tau should be linked. If Can Gio is oriented to become an FTZ, it is possible to learn from the experiences of Singapore and Malaysia.
Associate Professor Dr. Vu Anh Tuan, Vietnam-Germany University, said that the project to develop a free trade zone needs to specifically study the products, production lines, and scale to include. The reason is that Can Gio land is small, so whether or not this zone can be established needs to be carefully considered.
Perspective of Can Gio international transit port project. Photo: Portcoast
Can Gio is being studied for the construction of an international seaport with an investment capital of about 5.45 billion USD. The project is more than 7 km long and can receive the largest container ship currently, 250,000 DWT (24,000 teus). The project is being studied in 7 phases. The first phase will be completed in 2027 and the entire project will be completed by the end of 2045.
Le Tuyet
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