Lawmakers have passed a resolution to pilot special mechanisms for the development of Da Nang City, including the establishment of a free trade zone.
It approves a free trade zone linked to Lien Chieu Port, and in the zone, Vietnam’s third-biggest city will trial mechanisms and policies that allow it to attract investments in “high-quality” financial, trade and tourism services.
The Da Nang Free Trade Zone will have production areas, logistics centers, commercial-service zones,
and other functional areas.
The functional areas will be separated by a fence to ensure inspection, supervision and customs control.
Lien Chieu Port is under construction and is set for completion next year to ease
pressure on Tien Sa Port.
It will span 450 hectares to have eight container berths for ships of 30,000-200,000 DWT, six general berths for ships of 30,000-100,000 DWT, a 1,200-meter inland waterway dock, and six wharves specializing in handling liquid and gas
cargoes.
Its cargo handling capacity is expected to reach 50 million tons a year by 2050.
It is expected to cost over VND3.4 trillion (US$133.4 million), with around VND3 trillion provided by the government and the rest coming from the city.
In an interview earlier this year with VnExpress, Da Nang vice chairman said the city has geographical and infrastructural advantages for establishing a free trade zone since it is one of the few places with both an international seaport and airport.
He said the zone could have outlet stores selling branded goods at highly competitive prices due to tax breaks targeting not just locals but also tourists, including foreign.
Foreign investors setting up businesses in the zone do not need to go through the usual investment procedures.
They will also enjoy customs priority for export and import.
The National Assembly (NA) has tasked the government with issuing regulations for the management and development of the zone.
In case of issues beyond its authority, it has to report to the NA Standing Committee a decision.
Le Quang Manh, chairman of the NA’s Finance and Budget Committee, said since such a zone is new in Vietnam, it would be started on a trial basis and improved gradually.
The pilot period for the special mechanisms and policies is five years.
Source: Vnexpress
