On the morning of June 26, with 452/459 delegates in favor, the National Assembly passed a resolution on the organization of urban government and piloting a number of specific mechanisms and policies for the development of Da Nang City. The resolution will take effect from January 1, 2025 and will be implemented for 5 years. Notably, the National Assembly agreed to establish the Da Nang free trade zone associated with Lien Chieu seaport with the goal of attracting investment, finance, trade, tourism and high-quality services. The Da Nang free trade zone has functional areas specified in the Prime Minister's establishment decision, including production areas, logistics centers, trade - service areas and other types of functional areas according to the law. The relationship of buying and selling and exchanging goods between functional areas of the Da Nang free trade zone and outside areas is an export and import relationship according to the provisions of Vietnamese law on customs, taxes and export and import.

National Assembly Deputies vote to pass the resolution. Photo: National Assembly

Many preferential investment policies in the Da Nang Free Trade Zone will be implemented according to the resolution passed by the National Assembly. In particular, the projects of investors leasing land in the Da Nang Free Trade Zone will be applied as investment projects in economic zones according to the provisions of law. Investment projects in the Da Nang Free Trade Zone will also receive tax incentives, land rent reductions, etc. Enterprises with investment projects in functional areas of the Da Nang Free Trade Zone will enjoy preferential customs treatment for export and import activities in the city when meeting the conditions prescribed by the law on customs, tax, finance and related laws, except for the condition on export and import turnover. Before the National Assembly passed the resolution, according to the report on receiving and explaining the opinions of National Assembly deputies, the majority of opinions agreed to the pilot implementation of the establishment of the Da Nang Free Trade Zone. This is a breakthrough policy, demonstrating the spirit of innovation, daring to think, daring to do, laying the foundation for the formation of new policies in the process of operating a market economy. However, some opinions assess that there are no outstanding, breakthrough policies for free trade zones. Many tax policies are similar to those applied to economic zones... According to the National Assembly Standing Committee, the pilot establishment of free trade zones is a major policy that has sufficient political and legal basis. If successfully implemented, it will create a premise to promote socio-economic development of Da Nang City and the whole region. However, because this is a new policy, not yet implemented in Vietnam and is also a resolution of a pilot nature, the policies are a trial step, while doing, we will gain experience to gradually perfect it. The National Assembly Standing Committee noted that it is necessary to be extremely cautious, have firm steps, and not regulate issues that have not been thoroughly assessed and are highly risky. Furthermore, policies need to be studied and developed based on the implementation capacity, financial resources, and meeting conditions of Da Nang City. Regarding tax incentive policies, according to the National Assembly Standing Committee, free trade zones around the world apply many forms of investment incentive policies, including tax exemption incentives. Corporate income tax in free trade zones is lower than the regulations applied nationwide. The National Assembly Standing Committee affirmed that Vietnam has gradually approached this new model and has tax incentives in export processing zones, duty-free zones, bonded warehouses, and duty-free shops. In addition, to strengthen the management and strict control of State management agencies in applying specific policies, giving priority to export and import turnover, the National Assembly Standing Committee proposed that during the implementation process, the Government direct Da Nang City and relevant agencies to strengthen inspection and examination, to prevent abuse and exploitation of policies. The Resolution stipulates that Da Nang attracts strategic investors. Accordingly, strategic investors implementing projects in the fields of artificial intelligence (AI) technology, semiconductor chip technology, semiconductor integrated circuit industry, information technology, innovation, research and development associated with training are allowed to choose the form of State land lease with one-time land rent collection for the entire lease term. The determination of land prices and financial obligations when the State leases land with one-time land rent collection for the entire lease term shall be carried out in accordance with the provisions of the law on land and relevant laws.

Vietnamnet.vn

Source: https://vietnamnet.vn/quoc-hoi-cho-phep-da-nang-lap-khu-thuong-mai-tu-do-2295353.html