Will the free trade zone in Da Nang follow the 'zone within zone' interconnected model?

Dr. Tran Du Lich contributed ideas to the project – Photo: TRUONG TRUNG

Interconnection mechanism model "area within area"

On November 23, the People's Committee of Da Nang City organized a consultation on the project to build a free trade zone.

Representative of the project drafting team, Associate Professor, Dr. Bui Quang Binh (University of Economics - University of Danang) said that it is expected that by December 2024, Danang will have to complete the project and dossier to establish the Danang free trade zone.

Mr. Binh said that based on many successful models of free trade zones in other countries, Da Nang proposed a model of a multi-functional complex free trade zone following the "zone within zone" interconnection mechanism.

Accordingly, attract development outside the territory to resonate with attracting activities inside the territory.

The area of ​​the free trade zone when the infrastructure is completed and functional areas are synchronized will reach about 2,400 hectares.

This is a type of free trade zone with hard fences and defined spatial boundaries, applying competitive incentive policies to attract FDI enterprises and domestic enterprises with leading positions in a number of priority industries.

The project development team expects the free trade zone to have a pioneering model with superior institutions according to international standards, attracting leading investors in priority fields; being a modern, high-quality production, logistics, trade and service center associated with Lien Chieu seaport.

According to Mr. Binh, the points that need to be improved to increase Da Nang's competitiveness in the region are upgrading logistics infrastructure and building an ecosystem to support businesses.

Lien Chieu Port in Da Nang is taking shape – Photo: TRUONG TRUNG

Proposal to give Da Nang more power

Contributing ideas to the project, many experts said that the central government has provided a pilot mechanism, so Da Nang boldly requested the highest level of policy mechanism, creating the most openness to attract investors.

Dr. Vo Thi Thanh, former deputy director of the Central Institute for Economic Management, said that the pilot mechanism allows Da Nang to "not be afraid of making mistakes", allowing Da Nang to pilot a free trade zone to gain experience for the whole country to apply.

Mr. Thanh suggested that Da Nang should have the spirit of not being afraid of making mistakes, comparing with compatible free trade zone models to learn the strongest points of the models and boldly proposing the best policies.

"Especially regarding tax policies for investors, they should be flexible over time to create motivation for businesses," he said.

Dr. Tran Du Lich, member of the National Monetary Policy Advisory Council, said that it is necessary to add a regulation that the Prime Minister authorizes Da Nang to select strategic investors according to demand.

"Da Nang should ask for permission to pilot ahead in terms of ideology, taking the current spirit of local decision, local action, local responsibility" - Mr. Lich proposed.

Receiving the opinions of the delegates, Mr. Tran Chi Cuong, Vice Chairman of the People's Committee of Da Nang City, said that the spirit of Da Nang is to boldly pilot, have breakthroughs in development and continue to propose new policies and mechanisms, not just stopping at Resolution 136 of the National Assembly.

Mr. Cuong said that Da Nang has also researched many free trade zone models in the world and will boldly include in the project what needs to be recommended.

It is expected that by December 2024, Da Nang must complete the project and documents to establish a free trade zone - Photo: TRUONG TRUNG

How to contribute to Da Nang economy?

The draft project sets out specific targets, GRDP directly generated from forecast activities will contribute 3.0% in 2030, 12.4% in 2040 and 21.2% in 2050 to the city's total GRDP.

At the same time, the goal is to attract about 21,000 workers by 2030 and 97,000 workers by 2040, with labor productivity increasing gradually through each stage due to focusing on industries that bring high added value.

Source: https://tuoitre.vn/khu-thuong-mai-tu-do-o-da-nang-se-theo-mo-hinh-lien-thong-khu-trong-khu-20241123144656141.htm