Phu Quoc toward a Dynamic Special Economic Zone

 

Phu Quoc is located in the centre of the Southeast Asia area, having significant advantages in marine and aviation transportation with countries in the region and the world and enormous potential for economic development as well as particularly important position on national security and defence. Under the approved plan, Phu Quoc is developed towards the goal of becoming a national and international eco-tourism, resort and entertainment centre; a regional financial centre, an important hub of local transport and international aviation, a specialized science and technology research centre, a conservation centre of forest and marine biodiversity of the country and the region and a locality with special position on national security and defence. By 2020, the population of Phu Quoc is expected to be approximately 340,000-380,000 people and will attract 2-3 million visitors (international visitors accounting for 35-40 percent). By 2030, the population of Phu Quoc is expected to reach approximately 500,000-550,000 people, attracting 5-7 million visitors (international visitors accounting for 45-50 percent).

 

To deploy the plan, the Prime Minister has assigned the Southwest Steering Committee, ministries and departments of Kien Giang to map out Construction Scheme establishing the Special Administration and Economic Region of Phu Quoc in order to promote natural advantages of this island district.

 

It can be seen that Phu Quoc has special potentials and huge advantages for economic development. The real push contributing to the rapidly changing face of Phu Quoc was in 2004 when the Prime Minister's Decision No.178 approved the master plan to develop Phu Quoc Island towards 2010 with a vision to 2020. Through 9 years of implementation, the socio-economic development of Phu Quoc has seen positive GDP growth of 22 percent a year, average revenue increase of over 36 percent a year, increasing 15 times, mobilized social capital increase by 11 times, the number of tourists increase by 3 times, poverty rate fall from 14 percent to 1.86 percent, etc. Besides, the system of essential infrastructure on the island has been planned and substantially invested in. In particular, key projects including Phu Quoc international airport, An Tho international port, Dong Duong inland port, etc. have been completed. Besides, Phu Quoc is also completing north-south main traffic axis, roads around the island and connecting with urban roads across Dong Duong, An Thoi, Bai Thom, Cua Can urban areas.

 

However, the current growth rate of Phu Quoc is still not satisfactory compared to the potential advantages of the island district, so the scheme establishing Phu Quoc Special Administration and Economic Zone has great importance in creating momentum for Phu Quoc to flourish. The highlight of the scheme is to establish a dynamic organizational model having self-reliance and self-responsibility in which specific incentives and mechanism in construction, infrastructure investment and development of economy, tourism, education are applied. Specifically, the draft scheme of Phu Quoc special zone has two administrative levels including administrative level (having People’s Council and People's Committee) and ward level (having administrative Committee). Also specific mechanisms and policies on human resource development, immigration, residence, investment, land use management, tax, retain of 100 percent of revenue in the area for investment in infrastructure have also been proposed.

 

Implementing Decision of the Prime Minister, so far the master planning on construction of Phu Quoc and specialized plans such as planning on traffic, tourism, energy supply, fisheries, trade and industry, irrigation, post and telecommunication have been approved. The overall scheme on environmental protection and the planning on drainage system and wastewater treatment are being focused on and implemented. In 58,923 hectares of natural soil, the construction area of functional areas including tourist resorts, commercial area, urban areas, sports centres, amusement parks, entertainment complex, etc. cover about 12,400 hectares. In 2014, Kien Giang will start building and complete legal documents, promote investment in infrastructure on Phu Quoc Island. After 2015, there will be acceleration phase completing infrastructure investment for investment in synchronous development of entertainment services, finance, banking and human resources training.

 

For additional contribution to the draft master planning establishing special Phu Quoc economic zones, recently, the mission delegate of the Central Economic Committee, lead by Mr Le Vinh Tan, member of the Party Central Committee cum Deputy Director of the Central Economic Committee had a meeting with leaders of Kien Giang province. Accordingly, the Central Economic Committee required Kien Giang to adjust and complete the plan for submission to the Communist Party and the Government for the Politburo to establish Phu Quoc economic zone earlier, creating momentum for promoting the efficiency and potential advantages for Phu Quoc to soon become a dynamic spearhead economic zone in the country.