The Law Committee gives opinions on the Project Law on special administrative and economic units

>Plenary session of the 8th National Assembly's Law Committee. Photo: MPI

Reporting at the meeting, Deputy Minister of Planning and Investment Nguyen Van Trung said that, based on the conclusions of the National Assembly Standing Committee at the 14th session, the Ministry of Planning and Investment issued Official Dispatch No. 7702/BKHDT-QLKKT dated September 21, 2017 reporting to the Prime Minister and Official Dispatch No. 7703/BKHDT-QLKKT dated September 21, 2017 sent to the Law Committee on the expected reception and revision of the Law project.

The law was developed to concretize the Constitution on the special HCKTDB unit applied in Van Don, Bac Van Phong and Phu Quoc, which was approved by the Politburo for its establishment in Concluding Notice No. 21-TB/TW dated March 22, 2017. Legislative policies, strategies, and plans for socio-economic development of special economic zones at the VIII, IX, and XII Congresses of the Party. Especially recently, the Resolution of the 5th Central Committee of the 12th Party Central Committee determined to “build a number of special administrative units with outstanding institutions to create growth poles and experiment with innovation and perfect the organizational apparatus of the political system“.

Looking at the world, since 1942, many countries and territories have successfully built and developed the "Special Zone" model with different names such as: Free Trade Zone, Special Economic Zone, Special Administrative Zone, Free City, etc. These "Special Zones" have become development locomotives, are widespread, have great investment attraction and are currently being continued to be perfected by countries at a high level. to compete in the context of globalization and deep economic integration. The number of Special Zones increased rapidly over time and by 2016 there were about 4,500 Special Zones in 140 countries. In Asia, since the late 1960s, Special Zone models have been strongly developed in many countries and territories such as:China, Korea, Singapore, United Arab Emirates, Japan, Indonesia, Taiwan, Malaysia. Many Special Zones have had outstanding successes such as in China, Korea, and the United Arab Emirates. However, there are also some Special Zones in India, Pakistan, and some countries in Africa that have not developed successfully.

Factors leading to the success of Special Zones include: (1) having a separate governing law for Special Zones; (2) has a business investment environment, preferential policies for international competition and is allowed to experiment with new institutions and policies; (3) has a strategic geo-economic location; (4) clear industry and profession development strategy; (5) have initial investment support from the State; (6) streamlined, efficient and effective administrative management apparatus.

Factors leading to the failure of some Special Zones include: (1) unfavorable location leading to large investment costs; (2) preferential policies lack international competitiveness; (3) rigid labor policies; (4) infrastructure does not meet investors' requirements; (5) rental price and subsidized services; (6) the management and organizational model is cumbersome, ineffective, and ineffective.

The Draft Law has a structure of 6 Chapters with 92 Articles and 4 Appendices stipulating special socio-economic policies, local government organizations, Courts, Procuracy and other state agencies at the HCKTDB unit with some main contents on: Socio-economic development policies; Organization and operations of local governments and other state agencies at HCKTDB unit; Separate regulations for 3 Special Zones.

Regarding the organization and operation of local governments, receiving comments from the National Assembly Standing Committee, the draft Law is expected to stipulate 02 plans for the organization and operation of local governments in HCKTDB units. In particular, option 1: Organize the local government of the HCKTDB unit including the Head of the HCKTDB unit and the Council of the HCKTDB unit. Option 2: Organize a local government level at the HCKTDB unit.

Regarding the organization and operation of the People's Court, the People's Court of the HCKTDB unit has an organizational structure equivalent to the district-level People's Court, and can supplement specialized courts including: Economic Court, Labor Court, Administrative Court compared to the district-level People's Court, and may have other specialized Courts. The People's Court of the HCKTDB unit has authority equivalent to the district-level People's Court in handling cases and cases in the HCKTDB unit's area; At the same time, most of the jurisdiction to resolve according to first instance procedures of the Provincial People's Court for specific cases and cases (including cases and cases with foreign elements) is added.

Based on the nature of the Special Zone, the draft Law regulates the organization and operation of the police, military and central agencies organized vertically in the special zone, including: Military Command, Special Zone Police, Finance agency, State Bank branch, Social Insurance in a streamlined direction, with enough authority to quickly resolve the requests of people and businesses while ensuring national defense and security. security in the Special Zone.

Regarding separate regulations for the 3 Special Zones, on the basis of qualitative and quantitative assessment, the draft Law stipulates development goals, priority development industries and a number of preferential policies for each special economic zone unit. Priority sectors and occupations for development of each Unit. In particular, Van Don develops high-tech industries and high-tech supporting industries; Ecotourism, cultural tourism, cultural industry; Aviation services and aviation logistics; Commercial and shopping services. Bac Van Phong develops information technology, electronics, and precision mechanical industries; International cargo and passenger seaports; Seaport logistics services; Trade – finance. Phu Quoc develops resort tourism and eco-tourism; Festivalinternational conferences, exhibitions, trade and procurement services; Asset management services; Medical services.

Speaking at the meeting, Deputy Chairman of the National Assembly Economic Committee Nguyen Minh Son said that the Government's Proposal on solving population problems when establishing 03 special zones should clearly show international experience on how to solve social security and population issues when building special zones.

Regarding the organizational model, Deputy Chairman of the National Assembly Economic Committee Nguyen Minh Son approved option 1. According to Mr. Nguyen Minh Son, some opinions that it is contrary to the Constitution are not correct. Chapter 9 of the Constitution stipulates that there is openness to create space for reform of the local government apparatus when necessary, so this provision is consistent with the Constitution. However, the design of the special zone council with functions, tasks and powers is still very weak while assigning a lot of authority to the chief of the special zone. Afraid that when implemented, "fresh firewood" will burn immediately due to great authority without power supervision. Therefore this assembly should be redesigned.

The amount of investment capital of strategic investors specified in the draft Law is not enough, it is necessary to add a number of specific conditions and criteria related to technology and management factors... it is necessary to clarify issues related to the relationship of vertical sectors in terms of tax and treasury and clearly explain the amount of budget capital and preferential regulations on airport development in Van Don...

Speaking at the meeting, Deputy Minister of Home Affairs Nguyen Anh Tuan said that the Ministry of Home Affairs is coordinating with three provinces of Quang Ninh, Khanh Hoa, and Kien Giang to complete projects to establish special zones. The basic projects have been completed, but there are still problems related to plans for arranging civil servants as well as social security issues and restructuring human resource development in the area. At the same time, carry out an impact assessment and implementation plan when the National Assembly allows the establishment of a HCKTDB unit.

The Government has established an Appraisal Council for 03 Projects, in which the Deputy Prime Minister is the Chairman of the council. The Ministry of Home Affairs will advise and guide three localities to simultaneously complete the Projects to promptly submit to the National Assembly.

Concluding the meeting, Chairman of the Legal Committee Nguyen Khac Dinh highly appreciated the urgent working spirit, enthusiastic comments, and responsibility of the delegates with the desire to soon pass this very special Law. At the same time, he emphasized that through the reports of the Ministry of Planning and Investment and the Standing Committee on Law, the Law Project has been directed by the Government to ministries and branches to coordinate with localities and agencies of the Party and the National Assembly to prepare seriously with a sense of urgency and high responsibility. The drafting agency has organized many workshops and conferences to collect opinions, and conducted domestic and foreign surveys and researched many model documents in the world and Vietnam to develop the Law project.

The opinions all highly appreciated the responsibility of the Drafting Committee, the responsibilities of localities, central agencies, the Party, and the National Assembly in coordinating with the drafting agency to develop this Law. All opinions agree that it is necessary to promulgate the Law and hope that the Law will be passed at the 5th Session of the National Assembly. At the same time, we request the drafting agency and relevant agencies to coordinate with 03 localities to urgently complete the Law Project with 03 overall projects, which clearly analyze relevant issues so that the National Assembly has a basis for consideration.

Previously, on September 26, 2017, in Nha Trang, the National Assembly's Law Committee coordinated with the Ministry of Planning and Investment and Khanh Hoa Provincial National Assembly Delegation to organize a conference to collect opinions and meet with voters on the topic of the Law on HCKTDB Units./.