Attracting Resources for Van Phong Special Economic Zone Development

In the trend of globalisation, integration and opening up, many economic zones (EZs) have been formed and thrived in many countries around the world. In transiting economies, the construction and development of free EZs is an important step to further promote liberalisation and integration into the global economy. The free EZs are becoming more versatile and serve as the "gateway" for the most superior resources as well as the "new growth pole" to help the national economy catch up with global development.

 

A key element bringing success to the most successful free economic zones in the world today is a superior economic liberalisation mechanism and a special administrative mechanism with high autonomy. The free EZs can make one more step towards becoming the special administrative zones or special administrative and economic zones which are general socio-economic zones set apart by geographical boundaries and high autonomy and specific administrative and economic management mechanism in order to create outstanding incentives.

 

The development of coastal economic zones in Vietnam initially has had positive contribution to the socio-economic development and security and defence of localities, promoted the development of marine economy and contributed to national sovereignty at sea. However, the operation of coastal EZs has also revealed many shortcomings, including slow deployment of infrastructure construction, inability to attract large investment projects, limited development diffusion and especially the lack of a truly free, open and world-class institutional system outperforming the existing institutional system in the country for the full development of advantages and potentials of the region in order to attract strategic investment capital from overseas.

 

Khanh Hoa is the focal point and the main gateway of South Central coastal provinces and the Central Highlands provinces. Khanh Hoa also has Truong Sa Island district which is critical to the national security and defence and marine sovereignty. Additionally, the province has climate suitable for leisure tourism, a long coastline with beautiful and famous beaches, in-place agricultural areas having seafood source enough to ensure the people's life, adequate sources of construction materials serving the construction of a modern urban areas and many scenic and historical relics. The Party leaders and people of Khanh Hoa province are full of determination to build a new development model.

 

Van Phong Bay in Khanh Hoa province is one of the world's most beautiful bays and located in a more favourable area compared to other bays in East Asia. This is a protected, deep water bay which is near the junction of important international sea lines and is the ideal convergence of the ports on the Indochina Peninsula and Asia -Pacific area. Van Phong Bay has the advantages of a geographical position for socio-economic development and comprehensive and insightful international integration.

 

Based on the comparative advantages of geography, natural resources, human resources, cultural and social conditions, national security and defence and high political determination of Khanh Hoa province along with the development requirements of the South Central coastal areas and of the country, on December 24, 2012, the Politburo issued Conclusion No. 53-KL/TW on the construction and development of Khanh Hoa province until 2020 with the vision towards 2030 approving the policy of "building Northern Van Phong Special Administrative and Economic Zone." On January 5, 2013, the Prime Minister also issued Note No.135/VPCP-V.III asking Khanh Hoa province to implement the Politburo's Conclusion.

 

Under the point of view of Khanh Hoa province, the special administrative and economic zone should meet the following specific objectives: To attain a world-class modern urban level, to have highly developed, modern and sustainable economy which have clear orientation on business lines, serving as the gateway for international trade, to have a modern administrative economic institution with high autonomy in order to create attractive environment for international investors, to have high-level socio- economic life, national security and political stability, to have world-class favourable habitat and business environment, to have cultural identity of Vietnam while integrating internationally.

 

To achieve the above-mentioned goals, it can be said that the decisive factor for the success or failure of the special administrative and economic zone is the attraction of investment of the "international strategic investors."

 

Foreign strategic investors will play a leading role in raising capital to invest in the entire infrastructure within the special zone including international airport and port, electric power systems, railways, internal roads, water supply and drainage system, waste disposal system, communication system, service works, houses, public facilities, commercial and shopping centres and entertainment centres.

 

Strategic investors support the Vietnamese government in the investment and installation of infrastructure connecting to the fence of the zone including highways, electricity, fresh water supply and communications.

 

Land clearance and resettlement of individuals and organisations residing and operating in the zone will comply with the policy of the Government of Vietnam in accordance with development phase and plan by investors and the government of Vietnam.