Developing special administrative and economic units, a push to boost the country's economy

>Overview of the discussion. Photo: Minh Trang (MPI)

From the 1980s until now, special economic zones (EZs) such as Shenzhen, Hainan, Xiamen... have been the driving force to turn China into one of the world's developed economies. In the near future, at the 4th Session, the 14th National Assembly will give opinions on the draft Law on special administrative and economic units. Vietnam hopes that the economic registration will be a "magic wand" to elevate Vietnam to the level of developed countries in the region.

Currently, the Government has selected 3 economic zones: Van Don (Quang Ninh), Bac Van Phong (Khanh Hoa) and Phu Quoc (Kien Giang) as special economic zones with special policies and mechanisms for development. According to analysis, 3 economic registrations can achieve an income of up to 12,000 USD - 13,000 USD/year, equivalent to 23 - 25 million VND/month. In Van Don, it is estimated that the State will collect about 1.9 billion USD from taxes and fees, and 2.1 billion USD from land revenues. The North Van Phong special zone is also expected to bring in about 1.2 billion USD in taxes and fees, and 1 billion USD from land revenues. Also according to calculations, in Phu Quoc, the State will collect about 3.3 billion USD from taxes, fees and land revenues.

The issue raised for discussion at the Seminar is what is the current status of socio-economic development of the three EZs of Van Don, Phu Quoc and Bac Van Phong? Will the Law on Special Administrative and Economic Units create a legal corridor, mechanism, and policy strong enough to create a launching pad for the three economic zones to develop strongly and be "breakthrough" as expected? What is the basis for the Government to submit to the National Assembly the Draft Law on special administrative and economic units? And moreover, what special mechanism is needed for which special zone, what is the monitoring mechanism as well as the difficulties and obstacles posed when implementing the economic registration model.

Discussing the issue of why compared to other countries in the world, Vietnam has only now raised the issue of establishing special administrative - economic units, Deputy Minister Nguyen Van Trung said that on March 22, 2017, the Politburo concluded in Notice No. 21-TB/TW on projects to build special administrative - economic units of Van Don (Quang Ninh province), Bac Van Phong (Khanh Hoa province) and Phu Quoc (Kien Giang province) and agreed to the policy of building a Law on special administrative and economic units.

Looking back at the results of the formation and development of economic zones, currently, Vietnam has 17 coastal economic zones, 26 border gate economic zones, the whole country has 328 established industrial zones... Regarding investment attraction, the economic zones have attracted 153 billion dollars, accounting for 52% of registered foreign investment in Vietnam, industrial production value is about 42%, exports 52%, attracting about 3 million workers. At the same time, when implementing projects in economic zones, industrial parks, and export processing zones, it also creates conditions for better management of environment and technology. However, the development of economic zones still has some limitations such as: there is little difference between the goals and direction of industry development. Although there are many efforts, there are not many institutions set for economic zones, industrial parks, and export processing zones.outstanding, administrative procedures are still complicated and have many clues.

In recent times, along with the Government submitting to the National Assembly a draft Law on special administrative and economic units, Quang Ninh province has devoted many resources to implementing connecting transport projects to attract investment. To date, groundbreaking and pervasive projects have been implemented and are accelerating their completion progress. This is one of the pioneering directions of Quang Ninh province.

It can be said that when there was no mechanism to develop into a special economic zone, Van Don, Quang Ninh had received a huge investment wave, in which Van Don had identified strategic investors. Discussing the meaning of finding strategic investors in developing special economic zones, Vice Chairman of Quang Ninh Provincial People's Committee Nguyen Van Thanh said that investors have invested in roads connecting Hanoi - Hai Phong, Hai Phong - Van Don, expected to start construction of Van Don - Mong Cai expressway with a total investment of nearly 2 billion USD. In addition, a number of ports and airports, especially Van Don airport, are invested in the form of public-private partnerships by strategic investors. Technical infrastructure has been prepared in recent years, systemThe national power grid has reached Co To island, the lake and dam system is also invited by the province to businesses and investors to pay attention to ensure the basic conditions. When the Law on special administrative - economic units is passed, the model of special administrative - economic units will be quickly deployed and soon ensure the success factor.

Quang Ninh is aiming to perfect transport infrastructure and develop priority fields and industries. At the same time, identify key strategic investors and pioneers in shaping the infrastructure system and production and business industries. Sun Group was selected as a strategic investor with dynamic projects such as airports and high-end complexes that have spread and attracted other investors such as investing in fields such as tourism, resorts, high-class hotels... In particular, the Group has contributed to developing Van Don into a special administrative - economic unit.

Currently, Van Don has two key projects identified as highlights of the Van Don Special Economic Zone: Quang Ninh Airport and Van Don High-end Complex Service Area. With the goal of completion in 2017, creating motivation to promote other localities in the region to develop together, these projects are currently receiving special attention from the province and investors, focusing maximum resources and solutions to accelerate implementation progress.

The wave of opening special economic zones developed in many countries in the late 60s of the twentieth century. According to statistics, there are currently about 4,500 special economic zones in 140 countries in the world. Most countries have their own laws governing this special economic institution. The draft Law on special administrative and economic units was commented on by members of the National Assembly Standing Committee at the 14th session. The majority of members of the National Assembly Standing Committee agreed with the need for an outstanding and special mechanism, giving enough power to the head of the economic zone. However, there needs to be a mechanism to monitor and control the power of the chief executive of the economic zone.

Clearly through the experience of other countries, to develop special economic zones, special mechanisms and institutional breakthroughs are needed. However, the level of incentives and to what extent are also issues that need to be raised, avoiding the situation of attracting investment at all costs. Discussing this issue, Deputy Minister Nguyen Van Trung said that the empowerment of special zone heads must be supervised through the National Assembly delegation, the Provincial People's Council, the Fatherland Front, other agencies and society. The issue of supervision needs to be oriented to ensure the most effective results. However, this is also a new issue compared to the present. The drafting agency is coordinating with relevant agencies to research to find the most effective monitoring mechanism, ensuring autonomy and promoting the responsibility of the leader.

The granting of too many privileges and power control to the head of the special zone still has many mixed opinions. What mechanism is needed to control the power of the head of the special zone? Mr. Tran Dinh Thien said that it is necessary to emphasize the role of personal responsibility in the special administrative-economic unit, basic supervision is to monitor capacity and responsibility. The most important monitoring is based on an open, transparent system, people monitoring...

Vietnam has many economic zones but not true special economic zones, where institutions are expanded, open, upgraded and create the most favorable and optimal conditions for investment. In order for special administrative and economic units to become growth driving regions for the country, it is essential to have a breakthrough model and mechanism. To do that, we must find a model suitable for Vietnam, draw lessons from the successes and failures of countries around the world, and most importantly, institutionalize the administrative management apparatus, create favorable conditions for production and business, audit the interests of investors and create spillovers for the whole economy. Hopefully at the 4th Session, the National Assembly willIn the XIV, issues related to the draft Law on special administrative and economic units will be given detailed opinions by National Assembly delegates on the issues being raised, creating an open but strict direction, truly creating a boost for the development of the country's economy./.