Vietnam has no special economic zones though there are 15 coastal economic zones and 28 border gate economic zones. The SEZs will select its own strengths to develop and exploit, create new development dynamics, ensure the allocation of resources by region and create the spread of growth around the country.
The SEZs will pilot key new economic and administrative policies before they are applied nation-wide to develop the maritime economy. They would be superior to existing economic zones in order to attract strategic foreign investors with truly large projects and cutting-edge technologies. Three SEZs are expected to spearhead the country’s growth and tap local advantages to impel growth there.
Economic zones, while belonging to a country, have relatively independent status in relation to the outside, enjoy great autonomy, are run through modern and free administrative and economic management mechanisms and are integrated deeply into the global economy.
The northern Quang Ninh province had proposed a scheme to build the Van Don SEZ in 2014, but no progress has been made. A plan for establishing the Phu Quoc SEZ was improved by the Government and was submitted for consideration to the National Assembly and the Politburo in 2015. The plan was completed by Kien Giang province and then submitted to the Ministry of Planning and Investment (MPI) at the end of last year.
The Government has requested that the People's Committees of Quang Ninh, Khanh Hoa, Kien Giang provinces coordinate with the ministries to finalize the scheme of economic-administrative division and propose the mechanisms and policies to build the Law on Special Economic Zones (or the Law on Special Administrative - Economic Units). The MPI is instructed to draft the law.
Not only Quang Ninh, Khanh Hoa and Kien Giang province, but Quang Nam, Quang Ngai and BinhDinh province have also attempted to set up SEZs in their provinces. MPI said it was necessary to set up an SEZ in accordance with a plan that must be thoroughly considered instead of establishing many SEZs too quickly.
The Law on Special Economic Zonesis expected to be enacted quickly, and administrative and economic policies in conformity with international practices promulgated, to help these SEZs compete with existing special economic zones and free trade zones around the world.
A policy on special economic zone construction was also added to the Vietnam’s Constitution in 1992 and reiterated in a Resolution passed by the Party Central Committee in 1994.
According to the Foreign Investment Agency (FIA) under the MPI, Quang Ninh province is seeking capital for 43 investment projects in a range of sectors during the 2016-2020 period. Quang Ninh had 121 registered foreign-direct investment (FDI) projects with total investment capital of about 5.9 billion USD.
Phu Quoc Island’s Investment and Development Management Board reported that 200 projects were registered on the island with total capital of 8 billion USD as of September 2016 while registered FDI of Kien Giang stood at 3 billion USD in 42 projects as at the end of November 2016.
Van Phong Economic Zone was established in 2006 with a total area of 150,000 hectares. It comprises 80,000 ha of sea and 70,000 ha of land under the supervision of Van Ninh District and Ninh Hoa Commune, Khanh Hoa province. There are currently 136 investment projects registered with the economic zone, with total capital of more than 1.4 billion USD. As at the end of November 2016, Khanh Hoa stood at 984.5 million USD with 97 projects, according to the MPI.
A study of ANZ was released at the beginning of 2016 with conclusion that SEZs are proving successful in attracting investment and production into the Greater Mekong economies. The SEZ, as per the survey’s findings, appear to be enablers of structural changes through a combination of ‘linkages’ and demonstration effects. Around 4,000 economic zones have been established in 135 countries, creating over 68 million jobs and adding more than 500 billion USD worth of traded-related value.
