With the intensive care and close guidance of the Politburo, the Provincial Party Committee and the Provincial People's Committee of Quang Ninh Province is striving to build Van Don into a special administrative - economic zone with special institutions, known as a Special Economic Zone. Van Don Special Economic Zone will be a strong development drive for Quang Ninh province and a development nucleus for the southern part of Red River Delta region and other regions. Prior to the opening of the international scientific conference on the first special economic zone in Vietnam, Vietnam Business Forum has an interview with Mr Nguyen Van Thanh, Vice Chairman of the Provincial People's Committee and Head of Quang Ninh Investment Promotion and Support Centre. Ngo Khuyen and Ngoc Bach report.
In recent years, many economic zones have been established across the country but they are generally being operated not very efficiently. In this context, Quang Ninh province continues piloting two special economic zones, Van Don and Mong Cai. Is there any difference between the two special economic zones in Quang Ninh and other economic zones?
In the process of renovation and integration, we have built and developed 15 coastal economic zones and 28 border economic zones. Economic zones have achieved some positive results in investment attraction and contributed positively to local and national economic development. However, the development of economic zones has not generated breakthrough impetus for local development and thus fallen short of expectations given favourable conditions and potential they have. This is primarily because institutions are not strong enough and restricted by specific laws; incentive mechanisms and policies are not competitive enough to attract international investors; organisational apparatuses are overlapped; investment resources are used ineffectively; infrastructure systems are not invested synchronously and poorly funded by State budgets; and high-quality human resources are insufficient. Moreover, according to the current trend, countries in the world tend to harmonise the exploitation of static advantages (natural conditions, geographical location, mineral resources, etc.) with the utilization of dynamic advantages (institution, policy, mechanism, modern administration, etc.) by forming and developing special economic zones and free economic zones to exert a pull on maximum resources, especially external resources, to motivate economic development. Japan, South Korea, the UAE and China are examples.
Before this reality, Quang Ninh applied the Resolution of the 11th Party Congress with three strategic breakthroughs, economic growth model change and economic restructuring with specific actions. The province proactively proposed piloting the construction of two special economic zones of Van Don and Mong Cai. At first, the province will focus on Van Don Special Economic Zone as it has performed in-depth studies and based on world experiences in development of special economic zones and special administrative zones and domestic realities. I am certain that Van Don Special Economic Zone will be different from other economic zones set up earlier, expressed by following contents:
(1) Outstandingly special incentive mechanisms with sufficient international competitiveness to attract investment capital, especially foreign investment.
(2) Develop the economy in the form of open, externally oriented special economic zone in order to attract capital, advanced technology and modern management methods of foreign countries to create breakthrough development steps in potential and advantageous fields.
(3) Streamlined, effective administration and easy, favourable administrative procedures
(4) With the special interest of the Party and the State, the Law on Special Economic Zones will soon be issued. The infrastructure system will be invested for perfection. The rapid and sustainable development of Van Don Special Economic Zone will contribute to economic restructuring and growth pattern transformation of Quang Ninh province and the country.
If the scheme on the construction of Van Don Special Economic Zone is soon deployed, Van Don will become a key economic driver. Do you have any correlation or comparison of old-time "Van Don Trading Port" to the Van Don Special Economic Zone in terms of nature, influence and other aspects?
Van Don has an politically and economically important position as it lies on the strategic transit route from East Asia to Southeast Asia and from ASEAN to China; in Vietnam - China “two corridors, one belt” cooperation area; in Nanning - Singapore economic corridor; and in extended Tonkin Gulf inter-regional cooperation area. One of decisive criteria for the selection and development of Van Don into a special economic zone as it “must lies on inter-regional and international economic corridor axes.” This criterion is used in a bid to maximise target markets and nationally and internationally comparative advantages.
In the modern world and international economic integration as now, the formation and development of Van Don Special Economic Zone will make this region a modern, dynamic development one, a civilised, modern seaside city, and a high-grade entertainment centre with casino, tourism and general services. Thus, ‘the nature and degree of influence’ will be greater and more diverse in all aspects like economy, society, culture, foreign affairs and national security and defence. This reconfirms and honours the historical value of the "ancient trading port of Van Don" and the continuation of today generations is the continuation of strategic vision of ancestors on the way of building a prosperous Vietnam.
In the future, how will Van Don Special Economic Zone link with the development of other economic zones like Mong Cai Border Gate Economic Zone and Dinh Vu - Cat Hai Economic Zone?
When it studied the scheme on construction of Van Don Special Economic Zone, Quang Ninh province identified that "The development of Van Don Special Economic Zone must be put in the overall planning and development connectivity of Quang Ninh, specially Mong Cai Border Gate Economic Zone, Ha Long City, Dam Nha Mac industrial Park, and Quang Ninh - Hai Phong area as a whole."
The objective of building Van Don Special Economic Zone is to exploit huge unique tourism potentials of Ha Long Bay - Bai Tu Long Bay; create motivations to and ripple effects on Quang Ninh province and Quang Ninh - Hai Phong region; and actively tap advantages of cooperation and development along the Vietnam - China coastal economic belt. The construction and development of Van Don Special Economic Zone will be used as a reference for widening the application of good socioeconomic development and management mechanisms and policies to the entire country. At the same time, the construction and development of Van Don Special Economic Zone aims to promote local comparable advantages to attract investment, especially foreign investment, for construction and development of large-scaled modern, high-grade tourism complexes and supporting business fields like finance, banking, communications, international communication, high-tech policies, eco-agriculture, fisheries, and seafood processing to serve tourism development requirements.
We can see that the development orientation and target of Van Don Special Economic Zone differs and does not conflict with adjacent economic zones but supplement and join forces to boost the development of Mong Cai Border Gate Economic Zone with the leading objective and orientation of becoming a “centre of trade, services, industries and seaports,” a modern centre of free trade and finance in the region,” and help Dinh Vu - Cat Hai Economic Zone “develop marine economy, with a focus given to seaport services development; a major sea-based economic hub of the northern region and the whole country, and a centre of industries, financial - banking services, tourism and trade."
In the world, there are many open economic zones and special economic zones established at different times with different practices. China, a neighbour to Vietnam and to Quang Ninh province, has successfully developed many special economic zones. With a lot of similarities between the two countries and localities, are Van Don and Mong Cai replicated versions of Shenzhen, Xiamen or Shantou?
When it studied and proposed the development model for Van Don Special Economic Zone, Quang Ninh province asked opinions and guidance of State and Party leaders, organised many conferences and seminars to seek expert consultations from professionals, officials and scientists; led many trips to survey and study experience in the country and in the world; analysed successful and unsuccessful cases in the world; and considered specific contexts and conditions of Vietnam. Actually, this special economic zone is typical of Vietnam, which inherits and develop economic zone models in many countries and suits international practices.
So, what does Quang Ninh expect from this international conference?
This International Scientific Conference on the Development of Special Economic Zones themed “Experience and opportunity" is very important to provinces and cities in general and Quang Ninh in particular. At this workshop, Quang Ninh expects:
(1) Consolidate political basis, legal basis, scientific rationale, and factual basis and necessity to the construction and development of the special economic zone.
(2) Clarify the feasibility and the possibility of success in building the special economic zone.
(3) Attract the attention and support of scientists, officials, intellectuals, business community, financial institutions and in Vietnam and in the world to the process of building and developing the special economic zone.
(4) Change the awareness of the community at all levels and all sectors; strengthen the trust and consensus in the process of developing the new model - an externally oriented open special economic zone model to contribute to the successful implementation of three strategic breakthroughs, economic restructuring and growth model transformation.
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