Prime Minister Pham Minh Chinh chaired a government meeting on December 5th to discuss the establishment of free trade zones, as reported by the Government’s Electronic Newspaper.
According to the meeting’s reports and discussions, there are currently over 7,000 special economic zones and free trade zones operating globally. These zones play a crucial role in the economic development strategies of emerging and developing nations.
Modern free trade zones have evolved into multifunctional hubs, integrating industrial, urban, service, financial, high-tech, and innovation sectors to maximize developmental resources.
In Vietnam, the general legal framework lacks specific regulations on the mechanisms, policies, management, and operations of free trade zones. The National Assembly has issued resolutions piloting special mechanisms and policies for Da Nang and Hai Phong, including provisions for free trade zones.
Developing a comprehensive plan for free trade zones is urgent and essential. It will provide a political foundation and eventually establish a legal framework, positioning these zones as new drivers of economic growth. They will serve as pilot areas for innovative mechanisms, policies, and economic institutions, aligning Vietnam’s business environment with international standards.
The Ministry of Finance plans to establish free trade zones in Da Nang, Hai Phong, and Ho Chi Minh City by 2026. By 2030, Vietnam aims to have 6-8 such zones, with additional models in favorable localities. By 2045, the goal is to have 8-10 internationally competitive free trade zones, contributing 15-20% to the national GDP.
The Prime Minister emphasized clarifying the concept of free trade zones and their distinctions from international trade centers.
In his concluding remarks, Prime Minister Pham Minh Chinh praised the Ministry of Finance’s efforts in preparing the proposal. He urged the incorporation of meeting feedback to refine the plan for approval, emphasizing speed and quality.
The Prime Minister highlighted the novelty of this initiative, stressing the need for feasibility and effectiveness. The goal is to pilot policies that support both immediate and long-term socio-economic development, particularly the 100-year strategic objectives.
He called for a clear definition of free trade zones, distinguishing them from international trade centers. While there are similarities, their mechanisms and policies differ, requiring flexible and creative application of existing regulations.
Pilot locations must be strategically chosen, balancing regional representation. Authorities should draw on international experience and adapt mechanisms to Vietnam’s context, ensuring competitiveness without disrupting the overall investment climate.
To implement the pilot program, the Prime Minister outlined key steps: policy development, planning, infrastructure enhancement, resource mobilization, high-tech application, smart management, and workforce training.
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