Building Da Nang Free Trade Zone is a pioneering model with superior international standard institutions.
On the morning of October 14, at the Forum “Da Nang Free Trade Zone – New driving force for the development of Da Nang logistics industry” organized by the Department of Industry and Trade of Da Nang City, Associate Professor, Dr. Bui Quang Binh – Representative of the consulting team for the Da Nang Free Trade Zone project – informed some key points of the project.
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| Forum "Da Nang Free Trade Zone - New driving force for the development of logistics industry in Da Nang City" |
“Accordingly, the Da Nang Free Trade Zone is expected to create development momentum, expand the economic scale of Da Nang City and impact the economy of the Central Key Economic Zone.
Da Nang Free Trade Zone has 3 main functional sub-areas: Production, logistics, trade - services; with favorable customs incentives, tax and land rent exemption according to special zone policy and effective management.
By 2030, Da Nang Free Trade Zone will be a dynamic and highly competitive development area in Southeast Asia. By 2040, Da Nang Free Trade Zone will become an important destination in the Asia-Pacific region, the city's growth center with an international logistics and re-export center. In the long term, the aim is to make Da Nang Free Trade Zone a competitive area in the world, raising the development level of the whole country.
Da Nang City aims to build a Free Trade Zone into a pioneering model with superior institutions according to international standards, attracting leading investors in priority areas. The development goal is that by 2030, Da Nang Free Trade Zone will directly contribute 1-2% of the total product in the area (GRDP), of which, industry in the Free Trade Zone contributes 1.2%; trade - services contribute 2.6%; attracting about 21,000 workers.
By 2040, the economy from the Free Trade Zone will contribute 9.5% of Da Nang's GRDP (industry 8.8%; trade - services 10.9%), attracting about 90,000 workers. By 2050, the Da Nang Free Trade Zone is expected to contribute 17.9% of Da Nang's GRDP (industry 13.2%; trade - services 22.3%) and be the workplace of 127,000 workers.
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| Associate Professor, Dr. Bui Quang Binh - Member of the consulting team to develop the Da Nang Free Trade Zone project |
Regarding the model, Da Nang City has identified the development model of the Da Nang Free Trade Zone as a multi-functional complex Free Trade Zone model following the "zone within zone" interconnection mechanism. "This model inherits and refers to the experience of successful free trade zone models in the world, is flexible, and suitable for the actual conditions of Da Nang City," said Associate Professor, Dr. Bui Quang Binh.
Da Nang Free Trade Zone prioritizes the development of four industries and fields including logistics, manufacturing, trade - services, and innovation.
There needs to be specific, outstanding, and unconventional mechanisms and policies that are consistent with international practices.
Discussing at the forum on building the Da Nang Free Trade Zone to ensure effective operation, economic experts focused first on the issue of specific mechanisms and policies to attract investment into the Free Trade Zone.
According to Associate Professor Dr. Bui Quang Binh, through the study of the policy mechanism of Resolution 136 of the National Assembly compared to the policy mechanisms of Free Trade Zones in the world, it is not outstanding. " Therefore, the first ambition of the project development team is to create an unprecedented mechanism, in line with international practices and freedom to attract investment for development. The mechanisms of Resolution 136 are only the first step to build. Resolution 136 allows the construction of specific, pilot mechanisms", Associate Professor Dr. Bui Quang Binh said and proposed that the construction of the policy mechanism of the Free Trade Zone should be 'open' to create flexibility, meeting the requirements of large, strategic investors.
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| Delegates discussed at the forum 'Da Nang Free Trade Zone - New driving force for the development of logistics industry in Da Nang City' on the morning of November 14. |
Agreeing with this view, Dr. Tran Thi Hong Minh - Director of the Central Institute for Economic Management (Ministry of Planning and Investment) - said that it is necessary to build a legal framework and flexible incentive policies to attract investment in free trade zones, such as tax incentives (VAT exemption for goods, land use incentives), and open customs to attract strong investment in free trade zones.
“The Da Nang Free Trade Zone is not only expected to create a breakthrough for Da Nang, but also a model that other localities can implement in the future. To create attraction, there must be proposals that go beyond the framework, are outstanding, especially since the current source of goods in Da Nang City is not abundant,” said Mr. Tran Thanh Hai, Deputy Director of the Import-Export Department (Ministry of Industry and Trade).
Ms. Dao Thanh Huong - Director of the Department of Industrial Economy and Services (Ministry of Planning and Investment) - said that when it comes to the policy mechanism to attract investment in the Da Nang Free Trade Zone, it is necessary to clearly distinguish the policy mechanism inside and outside the free trade zone. For the policy mechanism outside the free trade zone, only the current general policy is applied. " For the inside of the free trade zone, there must be an outstanding policy mechanism to attract investment, unprecedented in history. Da Nang City must boldly propose to include this issue in the project to build the Da Nang Free Trade Zone to submit to the Prime Minister" - Ms. Dao Thanh Huong proposed.
Speaking at the Forum, Deputy Minister of Industry and Trade Truong Thanh Hoai stated that Da Nang City’s pilot establishment of a Free Trade Zone is the basis for piloting new policies, creating a premise for legalizing regulations on free trade zones for the whole country. Deputy Minister Truong Thanh Hoai also affirmed that the Ministry of Industry and Trade always supports and accompanies ministries, branches and Da Nang City in the process of building and implementing the Project to establish the Da Nang Free Trade Zone.
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