Ho Chi Minh City should become a special economic zone similar to China's Shanghai through the use of special mechanisms, said a National Assembly deputy.

National Assembly Deputy Tran Du Lich 

National Assembly Deputy Tran Du Lich said that he supported HCM City newly-appointed Party Secretary Dinh La Thang's idea to develop a special economic zone in the city.

At a meeting of the municipal party committee, Thang said that the southern metropolis was not living up to its potential, and lagging behind other regional cities in terms of economic development.

The city is still Vietnam’s leading economy, but the city is not in the top three on the provincial competitiveness index and has in reality been outpaced even by other Vietnamese locations. "HCM City used to be number one, so the city has to take back that position," Thang noted.

Speaking to DTiNews, NA Deputy Tran Du Lich said Thang's idea has been discussed during the terms of previous municipal party secretaries; however, to date it had not yet been implemented.

"Developing HCM City into a special economic zone is a very good idea, but it should not be similar to current ones in Vietnam like the Van Don Special Economic Zone in Quang Ninh Province or Phu Quoc in Kien Giang Province. The city should be modelled on China's Shanghai and be based on urban administration.

If adopting a Shanghai-modelled special economic zone, HCM City's committees and institutes, but not departments, would be responsible for policy research. After the policies are approved by the municipal people's council and people's committee, departments will be assigned to implement the policies. This will stop the situation in which departments take responsibility for both the research and the implementation.

HCM City is the country's economic hub, so it should be given with more authority to develop urban administration, not be subject to similar conditions like a small mountainous province. It is a waste, Lich noted.

He, however, said that it is unnecessary to pass a separate law for HCM City like that of Hanoi (Hanoi Law). "I think that HCM City should start the special economic zone as soon as possible because it is a suitable time," he said.

"If the model is applied successfully, I believe that HCM City will see breakthroughs in the near future", Lich said.

Economist Tran Dinh Thien, head of the Vietnam Economics Institute said that annually Vietnam receives around USD11-12 billion in overseas remittances, of which, USD5-7 billion is poured into HCM City. HCM City also has more qualified human resources. These are important conditions for the city to become a special economic zone.

Vietnam has many special economic zones in some provinces such as Van Phong, Van Don and Cau treo, but their mechanisms are similar to priorities given to remote and mountainous areas.

A true special economic zone is not necessarily confined to tax or land priorities, but instead concentrates on transparent and suitable mechanisms for investment development. Big groups always favour stable and transparent policies.