VietNamNet Bridge – Vietnam began thinking of developing special economic zones many years ago, but it still has not had any special economic zone in the true sense of the word.

The story about the special economic zone (SEZ) model has once again been put into discussion at a workshop on SEZ organized in the northern province of Quang Ninh – the locality which is believed to be the ideal place for an SEZ.

The workshop is considered as the first step taken the Quang Ninh provincial authorities to pave the way for the implementation of their plan to set up the Van Don SEZ there.

Nevertheless, Vietnam still feels puzzled about the “special economic zone” concept.

Vietnam has 18 coastal EZs under the construction, which cover the total area of 54,000 hectares. The EZs offer preferential policies, including the tax incentives and land leasing fee, to attract more investors.

However, as admitted by the Head of the Communist Party Central Committee’s Economics Commission Vuong Dinh Hue, the existing EZs cannot compete with the free EZs in the region and the world.

Also according to Hue, the existing EZs still cannot attract foreign strategic investors, and that Vietnam still does not have any SEZ in the true sense of the word.

Agreeing with Hue, Bui Tat Thang, Head of the Ministry of Planning and Investment’s Development Strategy Institute, noted that SEZ means the preferences which go beyond the common framework. This means that special mechanisms, both in socio-economic and administrative management, need to be applied in SEZs.

According to Le Van Thi, Chair of Kien Giang provincial People’s Committee, under the Prime Minister’s Decision No. 38, Phu Quoc Island can enjoy a special mechanism that all the investment projects there can receive the investment incentives as the projects in very difficult areas, instead of the other special policies needed for an SEZ.

However, the decision still cannot be implemented due to the problems in the legal framework.

Nguyen Chien Thang, Chair of Khanh Hoa provincial People’s Committee--where Van Phong Bay is, also thinks the problem lies in the fact that Vietnam still does not have the policies which are really more “open” than the currently applied regulations--so as to allow to take full advantages of the zones to attract investments.

“Vietnam needs to set up the SEZs with the best mechanisms in the world and the most favorable conditions to be offered to investors,” Tran Dinh Thien, Head of the Vietnam Economics Institute.

The SEZs in Vietnam need to have international stature and the outstanding competitiveness in comparison with the existing SEZ models in the world.

“SEZ does not mean an economic development model with little better conditions than the existing EZs,” Thien said.

Therefore, when asked about the feasibility of setting up the Van Don SEZ in Quang Ninh province, Thien said the locality, like the “door to the world,” has the advantages to develop an SEZ, but its success would still depend on the mechanisms to be applied.

Hue from the Central Committee’s Economics Commission believes that the first thing Vietnam needs to do to successfully develop SEZs is building up a law on SEZ.

Compiled by Chi Mai