National Assembly agrees to establish Da Nang Free Trade Zone

On the morning of June 26, the 7th session of the 15th National Assembly continued working. With 452/459 delegates in favor, the National Assembly officially passed the Resolution on the organization of urban government and piloting a number of specific mechanisms and policies for the development of Da Nang City. One of the outstanding policies in the resolution is the establishment of the Da Nang Free Trade Zone.

Delegates vote to pass the National Assembly resolution

What is in Da Nang Free Trade Zone?

According to the resolution, the Da Nang Free Trade Zone will be established in conjunction with Lien Chieu Seaport. The Prime Minister is the person with the authority to decide on the establishment, adjustment and expansion of the boundaries of the Da Nang Free Trade Zone.

The functional areas of the Da Nang Free Trade Zone are separated from the outside area by hard fences, ensuring customs inspection, supervision and control activities of customs authorities and state management activities in the corresponding fields of relevant agencies.

The relationship of buying, selling and exchanging goods between the 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.

Da Nang Free Trade Zone will be subject to a series of investment incentive policies. In particular, the duration of investment projects on construction and business of infrastructure of functional areas in Da Nang Free Trade Zone, and projects of investors leasing land in Da Nang Free Trade Zone will be applied as investment projects in economic zones according to the provisions of the law on investment.

Foreign investors establishing economic organizations in Da Nang Free Trade Zone do not have to have an investment project and do not have to carry out procedures for granting or adjusting the Investment Registration Certificate before establishing the economic organization.

Incentive levels, exemption and reduction periods for land rent, corporate income tax, taxes on goods and services, etc. are applied as incentives for investment projects in economic zones according to the provisions of law.

In addition, enterprises with investment projects in functional areas of the Da Nang Free Trade Zone are entitled to preferential treatment according to the provisions of the law on customs for export and import activities in the city when meeting the conditions for applying preferential treatment according to the provisions of the law on customs, tax, finance and relevant laws, except for the condition on export and import turnover.

The National Assembly listened to the presentation of the explanatory report, received and revised the draft resolution, and voted to pass the resolution in the hall.

New policy, need to be very careful

During the resolution-making process, the majority of National Assembly deputies agreed to pilot 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, in applying the world's advanced development model.

However, some opinions say that the policies for free trade zones are not outstanding and breakthrough; many tax policies are similar to those applied to economic zones. There are opinions suggesting to build a separate project on free trade zones to submit to the National Assembly for consideration and decision...

Receiving and explaining the above opinions, the National Assembly Standing Committee said that the pilot establishment of a free trade zone is a major policy with sufficient political and legal basis; if successfully implemented, it will create a premise to promote the socio-economic development of Da Nang City and the whole region.

However, this is a new policy, not yet implemented in Vietnam and is also a pilot resolution; the policies are experimental steps, while doing, we will gain experience to gradually perfect them.

“We need to be extremely cautious, take firm steps, and not regulate issues that have not been thoroughly assessed and are highly risky,” the National Assembly Standing Committee stated.

Besides, policies need to be feasible, need to be researched and developed based on the implementation capacity, financial resources, and meeting conditions of Da Nang City.

Based on the above grounds, at present, the National Assembly Standing Committee proposes to maintain the policy scope as in the draft resolution. At the same time, the process of piloting the free trade zone must be based on the principle of ensuring sovereignty, national security and national interests.

Thanhnien.vn

Source: https://thanhnien.vn/quoc-hoi-dong-y-thanh-lap-khu-thuong-mai-tu-do-da-nang-185240626074847299.htm