After nearly 30 years of renovation, Vietnam has made significant achievements. However, there are not many breakthrough achievements. Therefore, building special economic zones can be regarded as one of breakthrough solutions to promote socioeconomic development. Vietnam Business Forum Magazine’s reporter has an interview with Dr Doan Duy Khuong, Vice President of the Vietnam Chamber of Commerce and Industry (VCCI), on economic zone development associated with business development of Quang Ninh province and northeast coastal region as a whole. Lan Anh reports.
A friendly, favourable business environment draws resources and supports enterprises. To improve the investment environment in Vietnam, what fields will be changed?
Further enhancing the investment environment and creating more favourable conditions for investors to attract foreign direct investment (FDI) flows as well as domestic investment flows are important tasks for Vietnam.
In the past time, the Government of Vietnam has made great efforts to stabilise the macro-economy, control inflation, better the investment environment, and resolve difficulties against the business community. However, in reality, many problems are still found in many areas. Hence, to have a better investment - business environment, the Government will focus on perfecting the legal framework on investment, amending investment preference policies to entice domestic and international investors to invest in infrastructure, supporting industries and high technology projects.
Specially, the Government is perfecting the market economy; formulating a level playing field for all entities to have access to investment resources; imposing market mechanism on essential commodities; reforming and enhancing the transparency of tax and customs systems; accelerating public administration reform process; and strictly handling red-tape and corrupt bureaucrats.
Moreover, resources will be given priority to developing the private business sector; developing supporting industries; strengthening the protection of intellectual property rights; reforming and simplifying administrative procedures; and ensuring consistency and uniformity of legal documents.
Recently, the Prime Minister asked ministries, branches and localities to further remove barriers and perfect mechanisms and policies to raise the efficiency of investment as well as investment attraction. Accordingly, relevant agencies must urgently complete unfinished works, especially those concerning construction and promulgation of legal documents on investment affairs.
According to experts, to deal with business environment issues and create momentum for economic development, Vietnam should immediately establish some special economic zones. A special economic zone requires high economic autonomy, development freedom and competitive policies and mechanisms. To do so, it needs a streamlined bureaucracy and easy administrative procedures. How do you think about this issue?
Indeed, Vietnam does not have a truly special economic zone. In China, the most famous special economic zone is Shenzhen. It was initially a fishing village but it now has over 10 million residents. Although it has a small administrative area, its GDP is bigger than that of Vietnam. Other fast-growing special economic zones in the world are Incheon of South Korea and Dubai of the United Arab Emirates.
It is not easy to build such developed special economic zones. The principles of special economic zones are maximal economic openness and freedom, and superior modern economic institutions. It must gradually get rid of barriers to tariff, trade and investment. As regards regime, it should be entitled to issue specific laws on some aspects like wage, budget and tax.
In addition, it needs a totally new institution while its organisational structure, administrative procedures, and even judicial sector, must also operate in line with international practices. Vietnam needs to learn experience from successful special economic zones in the world and we must outdo forerunners. Since the special economic zone has a very big role, it must be prepared adequately. Besides, to ensure the success of the special economic zone, we must define strategic economic partners for it.
Quang Ninh province is building rapid, sustainable socioeconomic development project, powered by two locomotives, Van Don and Mong Cai. Van Don will be developed into a special economic zone, while Mong Cai will be built into a free border gate economic zone, linked to ASEAN. What do these special economic zones bring to businesses and socioeconomic development of Quang Ninh province and the northeast coastal region as whole?
Located in the northeast corner of the country, Quang Ninh province possesses unparalleled advantages in geographic conditions, terrain and resources. Quang Ninh is the only province in the country to have both land border and sea border. The province can connect with Hai Phong to form northern international port complex, connect with Hanoi and other provinces to establish a northern export transit centre linked to vast international markets, especially Northeast Asia and Southeast Asia.
In addition, Quang Ninh province is home to over 600 beauty spots, landscapes and historical sites, specially Ha Long Bay - Natural Heritage and Natural Wonder of the World or Yen Tu - the cradle of Vietnam Buddhism. The province thus holds huge conditions for tourism development (marine, ecological, cultural, historical, spiritual tourism) and entertainment industry development.
Moreover, Quang Ninh is endowed with enormous natural mineral resources, particularly coal, limestone and clay. This is a good condition and opportunity for the province to develop a mining centre, a thermal power centre, and a centre of building materials and support industries.
Along with Hanoi and Hai Phong, Quang Ninh is one of three growth poles of the northern economic triangle. Thus, Quang Ninh is a favourite destination of domestic investors. The formation of the special economic zone and border gate economic zone will strengthen the magnet of the province to investors.
However, to make these special economic zones truly develop and bring economic and social benefits to Quang Ninh province and surrounding areas, an investor-friendly investment environment plus good infrastructure, reasonable and transparent policies is essential.
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