“Encouraged” by special mechanisms and policies, especially a series of incentives in free trade zones, many cities in the world have developed spectacularly, becoming economic supports for the whole country. These are valuable experiences that Da Nang can refer to in its upcoming development journey.
 |
| Pudong (Shanghai) - China's new financial center. |
Pudong Leap Forward, Incheon
Once just an unknown poor fishing village, with a strong determination to develop the economy, along with policies that were considered to "hit the nail on the head", Pudong (China) or Incheon (South Korea) have created miracles that have made the whole world admire.
Established in 1990, Pudong on the banks of the Huangpu River (Shanghai) has quickly become one of the symbols of China's rapid economic development and modernization. It has built modern infrastructure and created a favorable business environment to turn Shanghai into an international economic, financial and trade center, attracting foreign investment. Many iconic architectural works such as the Oriental Pearl Tower, Shanghai Tower and Shanghai World Financial Center have been built in Pudong to create highlights and attract tourists.
Through tax incentives and business support policies, Pudong has created a favorable environment to attract foreign direct investment (FDI). Many breakthrough policies have been applied such as establishing Zhanjiang High-Tech Park to attract technology companies, research and development (R&D) centers, especially in the fields of information technology, biology and environmental technology; providing incentives and support for research and development, encouraging innovation and creativity in high-tech industries; Developing Free Trade Zones with flexible regulations to promote import and export and logistics services...
With superior policies continuously applied over the past 30 years, Pudong has become China's new financial center. Although it only accounts for 1/8,000 of the total area, Pudong contributes 1/80 of the country's GDP and 1/15 of the total import and export value. The GDP of this area has increased more than 200 times from 6 billion yuan in 1990 to more than 1,200 billion yuan in 2019. Foreign investment capital reached 103 billion USD, attracting 350 multinational companies from 170 countries and regions to set up headquarters.
Another successful bright spot in applying specific mechanisms and policies to attract investment is the Incheon Free Economic Zone (IFEZ) of South Korea. Established in 2003, IFEZ is designed to become a global economic hub, attracting foreign investment and promoting economic development in South Korea. IFEZ is located in Incheon, a strategic port city on the west coast of South Korea, near the capital Seoul and Incheon International Airport - one of the largest and busiest airports in the world.
IFEZ has invested heavily in infrastructure such as building a large port second only to Busan port, a subway network conveniently connecting to Seoul and building urban services such as hospitals, international trade centers, logistics complexes, etc. Enterprises in IFEZ enjoy incentives on corporate income tax, value added tax and import tax, allowing foreign ownership in many fields, providing financial support, administrative procedures and one-stop services, etc.
 |
| Incheon Free Economic Zone attracts top investment in Korea |
As of the end of July 2023, IFEZ has attracted 14.8 billion USD in FDI capital, accounting for more than 70% of the total FDI capital attracted by 9 Free Economic Zones in Korea. The number of foreign-invested companies has also increased from 3 to 206. In particular, IFEZ is making efforts to nurture talents to transform into a solid innovation city, attracting prestigious universities in the US...
The above successful lessons show that if institutional barriers are removed, cities can grow strongly, attract foreign investment and become regional tourism and investment centers.
Opportunity for Danang
Da Nang - the capital of Central Vietnam, a livable city, a favorite destination for people nationwide and international visitors is facing the opportunity for strong development if outstanding mechanisms are applied. At the ongoing 7th session of the 15th National Assembly, delegates will discuss and vote to pass the Resolution amending and supplementing Resolution 119/2020 on piloting the organization of an urban government model and a number of specific mechanisms and policies for the development of Da Nang city.
 |
| Da Nang is facing strong development opportunities when piloting special mechanisms and policies. Photo: Nguyen Trinh |
This Resolution stipulates 2 groups of specific mechanisms and policies with 30 specific mechanisms and policies. Notably, among the new policies proposed for piloting to develop Da Nang, there is a pilot establishment of a Da Nang free trade zone. This is a popular economic model and is highly focused on in the world to promote international trade and attract FDI. Many countries have been successful with this model such as China, Korea, Singapore...
The pilot establishment of the Da Nang free trade zone will be linked to Lien Chieu seaport to implement investment attraction mechanisms such as corporate income tax incentives, land rent exemptions and reductions, and other incentives. Enterprises in the free trade zone will be given priority in customs procedures. The Da Nang High-Tech Park and Industrial Park Management Board performs the function of state management of the free trade zone, with the authority to implement management according to the "one-stop, on-site" mechanism.
 |
| Luxury resorts attract international tourists to Da Nang |
If approved, this will be the money to promote Da Nang to attract large investment capital from domestic and foreign enterprises, contributing to accelerating economic development, creating momentum for tourism development and increasing the attractiveness of the job market, real estate, etc. Talking about this policy, Minister of Planning and Investment Nguyen Chi Dung said: "Countries have been ahead for a long time and have been successful, now we are behind and also have advantages, what is not suitable, we avoid, apply what is suitable for Vietnam. If we cannot build this institution, we will not be able to compete for investment in the future".
According to economic expert Tran Dinh Thien, the idea of building a new generation Free Trade Zone is being vigorously proposed by Da Nang. This is one of the major orientations, helping the city to soon turn around its development situation. As a development model, the Free Trade Zone associated with Lien Chieu Port, with a new development structure based on two main axes: High-tech Industry and International-class Tourism Services, will be the new driving force of the city in the coming period.
Source: https://thoibaonganhang.vn/kinh-te-nhieu-nuoc-da-but-pha-sau-khi-lap-khu-thuong-mai-tu-do-152190.html
Comment (0)