Minister of Planning and Investment Nguyễn Chí Dũng speaks the 33rd session of the National Assembly Standing Committee on Tuesday afternoon. Ảnh: nhandan.vn

The Government has proposed allowing Đà Nẵng City to pilot the establishment of a Đà Nẵng Free Trade Zone connected to the Liên Chiều Seaport. The goal is to implement experimental policies and mechanisms to attract investment to the area.

The proposal was stated at the 33rd session of the National Assembly (NA) Standing Committee on Tuesday afternoon. 

At the meeting, Minister of Planning and Investment (MPI) Nguyễn Chí Dũng said that the Government is requesting the NA to allow Đà Nẵng City to pilot 30 unique mechanisms and policies.

Besides policies similar to those in other localities, he said a new proposal is to permit the city to pilot the establishment of a free trade zone.

The leader of the MPI said that the country's current laws do not yet have regulations governing the setup and operation of free trade zones, though it is a common global model used to promote international trade and attract foreign direct investment (FDI). 

Dũng noted that many countries have achieved success with this model, such as China, Europe, Singapore and South Korea.

The draft resolution proposes piloting the establishment of the Đà Nẵng Free Trade Zone connected to Liên Chiều Port, based on studying successful global free trade zone models and harmonising them with existing economic frameworks in Việt Nam's legal system.

The goal is to attract investment through implementing trial policies and mechanisms in this free trade zone model.

The free trade zone would have a defined geographic boundary and be established by Prime Minister decision. Investment and infrastructure development for the functional zones would be decentralised to the Đà Nẵng People's Committee.

The Đà Nẵng Free Trade Zone will offer investment incentives similar to an economic zone, such as corporate income tax incentives, land rental fee exemptions/reductions and other benefits.

Businesses operating within the free trade zone will receive priority customs procedures. The Đà Nẵng Hi-Tech Park and Industrial Park Authority will oversee the free trade zone, with the power to implement single-window, on-site mechanism across different areas.

After preliminary review, Chairman of the NA's Finance-Budget Committee Lê Quang Mạnh said that the establishment of the Đà Nẵng Free Trade Zone is an important and necessary policy. 

If successfully implemented, the free trade zone would create a foundation to drive the city and region's socio-economic development. This model has been applied successfully in many countries globally.

The Standing Committee noted that this pilot project holds significance in laying the groundwork for new policies in the market economy's operation. It is an experimental process to gradually improve and perfect the implementation.

However, Mạnh warned this is a major initiative, involving not just economics, but also national defense, security, social order and the legal system.

As a result, he suggested that the Government direct a comprehensive review to clearly define key elements in the draft resolution, including the concept, organisational model, functions and duties, development and state management policies, development plans for the free trade zone, implementation resources and investment in infrastructure. — VNS