Finance ministry opposes high incentives for special economic zones

A road project from V​an Y​en Commune’s resettlement area to eastern C​ai B​au island park in Qu​ang Ninh Province’s Van Don economic zone. (Photo: VNA) Hanoi (VNA) –Deputy Prime Minister Vuong Dinh Hue has asked ministries, agencies and localities to build strong institutions to help Van Don Special  Economic Zone retain investors, businesses and visitors. He made the request during his recent visit to the northern coastal province of Quang Ninh’s Van Don island district to inspect constructions. Van Don has attracted nearly 2 billion USD of domestic and foreign investors to build infrastructure in the past few years. Van Don Airport’s construction of a 3,600-metre runway has been almost finished after two years of construction. According to Sun Group, the project investor, the international airport is expected to be operational in the first quarter next year. Apart from airports and logistics port, Sun Group also invests in resorts and entertainment areas. Visiting Van Don, the Deputy Prime Minister emphasised the island’s unique position and its role in the development of the northern region. This area is located in the area of Vietnam - China economic cooperation, as part of the Gulf of Tonkin inter-regional cooperation and can also be a bridge between ASEAN and China. Van Don also has potential to build deep-water ports, which are located in Hai Phong-Quang Ninh-Fangcheng (China) international port complex. Despite being an isolated island, Van Don is connected with the Red River Delta (National Highways…... [read more]

A road project from Van Yen Commune’s resettlement area to eastern Cai Bau island park in Quang Ninh Province’s Van Don economic zone. — VNA/VNS Photo Minh Duc Vietnamese Deputy Prime Minister Vuong Dinh Hue has asked ministries, agencies and localities to build strong insitituions to help Van Don Special Economic Zone retain investors, businesses and visitors. The Deputy Prime Minister, along with other ministerial and provincial leaders visited the northern coastal province of Quang Ninh’s Van Don Island District on Saturday to inspect constructions. Van Don has attracted nearly US$2 billion of domestic and foreign private investors to build infrastructure in the past few years. Van Don Airport’s construction of a 3,600-metre runway is almost finished after two years of construction. According to Sun Group, the project investor, the international airport is expected to be operational in the first quarter next year. Apart from airports and logistics port, Sun Group also invests in resorts and entertainment areas. Visiting Van Don, Deputy Prime Minister emphasised the island’s unique position and its role in the development of the northern region. This area is located in the area of Viet Nam - China economic ​​co-operation, is part of the Gulf of Tonkin inter-regional co-operation and can also be a bridge between ASEAN and China. Van Don also has the potential to build deep-water ports, which are located in Hai Phong-Quang Ninh-Fangcheng (China) international port complex. Despite being an isolated…... [read more]

NDO – Deputy Prime Minister Vuong Dinh Hue had a working session, on August 25, with the Quang Ninh provincial authorities concerning the local socio-economic performance, the implementation of salary and social insurance policies and the building of the project to establish the Van Don Special Administrative – Economic Zone. Politburo member Hue spoke highly of the significant achievements attained by Quang Ninh over the past seven months. The province’s gross regional domestic product (GRDP) increased by 9.6%, the highest in five years, while its budget revenues reached over VND21 trillion (US$924 million), meeting over 67% of the year’s plan, with domestic collection accounting for 73%, the fourth largest in the country. In order to execute the tasks set for the remainder of 2017, he urged the province to continue reviewing all spheres in order to apply the most appropriate measures. Quang Ninh should strengthen the application of high technologies in the fields of its strength, such as tourism and marine economy, whilst supporting the Vietnam Coal and Minerals Industries Holding Corporation to restructure the coal industry and tightening State management over tourism, land, natural resources and the environment, the deputy PM said. He stated that the Government has planned to submit to the National Assembly a solution of an administrative committee without the people’s council for the Van Don Special Administrative – Economic Zone, and supplement the provincial-level supervisory regulation over the head of the special zone. He requested that Quang Ninh continues contributing…... [read more]

The investment incentives are contained in a draft Law on Special Administrative Economic Units that the ministry has prepared for submission to the Government and the National Assembly (NA). The special economic zones are Phu Quoc in Kien Giang Province, Van Don in Quang Ninh Province and North Van Phong in Khanh Hoa Province. The MPI is suggesting an income tax exemption of five years for individuals living and working in these zones, and a 50% income tax break in the remaining years until 2030. This applies to “managers, scientists and qualified experts, as well as businesses, workers and other economic factors,” the draft says. The draft is slated to be passed by the National Assembly at its meeting in October this year. The MPI has also asked that Phu Quoc be given its own incentives, such as increasing additional income for civil servants working here from 30% to 50% of their base salary. It has also suggested that in order to encourage investment, local administrations of the special zones are allowed to grant permanent residency to foreign investors with projects worth US$5 million and above who stay for a minimum of five years in Phu Quoc without breaking any Vietnamese law. The MPI also considers Phu Quoc’s infrastructure to be developing with balance and forethought, with many high quality resorts operating successfully. It notes that the Politburo has permitted the island to build a casino where Vietnamese citizens would be…... [read more]

Phu Quoc Island’s coastline. — VNA/VNS Photo Truong Vi The Ministry of Planning and Investment (MPI) has proposed major incentives including prolonged income tax exemptions for businesses and individuals working in special economic zones in three provinces. The investment incentives are contained in a draft Law on Special Administrative Economic Units that the ministry has prepared for submission to the Government and the National Assembly (NA). The special economic zones are Phu Quoc in Kien Giang Province, Van Don in Quang Ninh Province and North Van Phong in Khanh Hoa Province. The MPI is suggesting an income tax exemption of five years for individuals living and working in these zones, and a 50 per cent income tax break in the remaining years until 2030. This applies to “managers, scientists and qualified experts, as well as businesses, workers and other economic factors,” the draft says. The draft is slated to be passed by the National Assembly at its meeting in October this year. The MPI has also asked that Phu Quoc be given its own incentives, such as increasing additional income for civil servants working here from 30 per cent to 50 per cent of their base salary. It has also suggested that in order to encourage investment, local administrations of the special zones are allowed to grant permanent residency to foreign investors with projects worth US$5 million and above who stay for a minimum of five years in Phu…... [read more]

The Ministry of Planning and Investment (MPI) has proposed major incentives including prolonged income tax exemptions for businesses and individuals working in special economic zones in three provinces. Phu Quoc Island’s coastline.-VNA/VNS Photo Truong Vi The investment incentives are contained in a draft Law on Special Administrative Economic Units that the ministry has prepared for submission to the Government and the National Assembly (NA). The special economic zones are Phu Quoc in Kien Giang Province, Van Don in Quang Ninh Province and North Van Phong in Khanh Hoa Province. The MPI is suggesting an income tax exemption of five years for individuals living and working in these zones, and a 50 per cent income tax break in the remaining years until 2030. This applies to “managers, scientists and qualified experts, as well as businesses, workers and other economic factors,” the draft says. The draft is slated to be passed by the National Assembly at its meeting in October this year. The MPI has also asked that Phu Quoc be given its own incentives, such as increasing additional income for civil servants working here from 30 per cent to 50 per cent of their base salary. It has also suggested that in order to encourage investment, local administrations of the special zones are allowed to grant permanent residency to foreign investors with projects worth US$5 million and above who stay for a…... [read more]

Quang Ninh province has envisioned turning the Van Don special administrative-economic zone into a smart and green island urban area. (Photo: VNA) Quang Ninh (VNA) - The northern province of Quang Ninh has envisioned turning the Van Don special administrative-economic zone into a smart and green island urban area, according to Secretary of the provincial Party Committee Nguyen Van Doc. The special administrative-economic zone is located in Van Don district, which has a total land area of 581.13 sq.km and sea area of 1,620 sq.km with a population of over 46,000. The district has a politically and economically important position as it lies on the strategic transit route from East Asia to Southeast Asia and from ASEAN to China, in Vietnam-China “two corridors, one belt” cooperation area, in Nanning-Singapore economic corridor, and in the extended Tonkin Gulf inter-regional cooperation area. Van Don is one of the three special administrative-economic zones designated by a Government-approved plan; the other two are Van Phong in the central province of Khanh Hoa and Phu Quoc in the southern province of Kien Giang. The zones will pilot key new economic and administrative policies before they are applied nationwide to develop the maritime economy. Quang Ninh is working on a master plan of and a law on Van Don special administrative economic zone, guided by the aim to build Van Don into a dynamic economic centre with focus on services, high-end tourism and high-tech industries. The zone is expected…... [read more]

Speaking at the 2017 M&A Forum organised in HCM City on August 10 by the Vietnam Investment Review, Minister of Planning and Investment Nguyen Chi Dung said the Special Administrative Economic Zone Law is expected to create a proper legal framework for the three zones in Van Don (Quang Ninh Province), Van Phong (Khanh Hoa Province) and Phu Quoc (Kien Giang). It aims to create a new development model with breakthrough policies and mechanisms meant to improve the investment environment and make Vietnam competitive in attracting investment. The zones will only have an administrative committee and no people’s council, and the people’s council’s role related to legislation and inspection would be taken over by provincial authorities, he said. “To effectively operate these special zones, we should remove unnecessary and inappropriate levels of special economic zones,” the minister said. The ministry has also proposed increasing the maximum land lease tenure to 99 years from the current 50-75, and allowing the zones to have casinos. Dung said the zones have been established to develop certain strategic industries based on their geographic conditions. For instance, Van Phong is the best place to develop a transit port in Vietnam and can develop logistics while Van Don has great potential in healthcare, education and biology, he said. All three would welcome industries with high value-addition, which would be identified for investment and announced soon, he said. The bill would be tabled in the…... [read more]

Van Don in ​Quang Ninh ​province is a special administrative-economic zone which is expected to see sea changes under a proposed new law (Photo: qtv.vn) HCM City (VNA) - The abolition of people’s councils, permitting casinos to be set up and allowing foreign investors to lease land for 99 years are among the main provisions of a proposed new law to govern the three special administrative-economic zones in Vietnam. Speaking at the 2017 M&A Forum organised in HCM City on August 10 by the Vietnam Investment Review, Minister of Planning and Investment Nguyen Chi Dung said the Special Administrative Economic Zone Law is expected to create a proper legal framework for the three zones in Van Don (Quang Ninh Province), Van Phong (Khanh Hoa Province) and Phu Quoc (Kien Giang). It aims to create a new development model with breakthrough policies and mechanisms meant to improve the investment environment and make Vietnam competitive in attracting investment. The zones will only have an administrative committee and no people’s council, and the people’s council’s role related to legislation and inspection would be taken over by provincial authorities, he said. “To effectively operate these special zones, we should remove unnecessary and inappropriate levels of special economic zones,” the minister said. The ministry has also proposed increasing the maximum land lease tenure to 99 years from the current 50-75, and allowing the zones to have casinos. Dung said the zones have been established to develop certain strategic industries …... [read more]

The abolition of people’s councils, permitting casinos to be set up and allowing foreign investors to lease land for 99 years are among the main provisions of a proposed new law to govern the three special administrative-economic zones in Việt Nam. Vân Đồn in Quảng Ninh Province, like Vân Phong in Khánh Hoà and Phú Quốc in Kiên Giang, is a special administrative-economic zones which is expected to see sea changes under a proposed new law. - Photo qtv.vn Speaking at the 2017 M&A Forum organised on Thursday by the Việt Nam Investment Review, Minister of Planning and Investment Nguyễn Chí Dũng said in recent years many important laws have been enacted or are being drafted. The Special Administrative Economic Zone Law is expected to create a proper legal framework for the three zones in Vân Đồn (Quảng Ninh Province), Vân Phong (Khánh Hòa Province) and Phú Quốc (Kiên Giang), he said. It aims to create a new development model with breakthrough policies and mechanisms meant to improve the investment environment and make Việt Nam competitive in attracting investment. The zones will only have an administrative committee and no people’s council, and the latter’s role related to legislation and inspection would be taken over by provincial authorities, he said. “To effectively operate these special zones, we should remove unnecessary and inappropriate levels of special economic zones.” The ministry has also proposed increasing…... [read more]




Links Topics : http://news.c10mt.com/2017/08/finance-ministry-opposes-high.html