(VOVworld) – The establishment of special administrative and economic zones known as free economic zones is no longer a new idea. But it’s quite a new model for Vietnam. It is hoped that the creation of these zones of preferential treatment will have an effect on other economic zones in Vietnam.

Party General Secretary Nguyen Phu Trong visits Van Don (Source: VNA)

The construction and development of special administrative and economic zones in Vietnam was proposed at the 4^th plenum of the Party’s Central Committee in 1997. Selected areas for the model include the island districts of Van Don in Quang Ninh, Phu Quoc in Kien Giang, and Van Phong Bay in Khanh Hoa province. The selection was based on local geographical and economic advantages. All three island districts have beautiful natural landscapes and a potential for tourism development, and they are all situated on a coastal route or inter-regional corridor.  Vuong Dinh Hue, head of the Central Economics Commission, said: "based on Vietnam’s sea and islands’ advantages, we’ll establish a number of special administrative and economic zones which will act as growth poles and activate regional economic development that could spread nationwide. These zones are places where breakthrough institutions and policies are being piloted, later to be applied nationwide."

Pursuant to this policy, Van Don Economic Zone has attracted 79 projects with total registered investment capital of 9.4 trillion VND. A casino project, part of the master plan for Van Don Economic Zone, has been approved by the Prime Minister. Quang Ninh is calling for investment in a 1-billion USD project to build Van Don International Airport. Nguyen Huu Thuy, President of Quang Ninh’s Young Entrepreneur Association, commented: “investment in Van Don is the desire of entrepreneurs, especially young businessmen. As one of the first investors in Van Don, I pay particular attention to investment promotion programs to help the place grow.”

Khanh Hoa authorities are stepping up efforts to set up a Van Phong special administrative and economic zone. To date, the zone has attracted 126 projects, mostly in heavy and auxiliary industries. With the Phu Quoc special administrative and economic zone, Phu Quoc hopes to become a financial center by 2020 by luring multi-national groups.  Vuong Dinh Hue, head of the Central Economics Commission, comments:“To establish the special zones, first of all we should promulgate a law on special economic zones or on special administrative and  economic zones. This was included in the National Assembly’s legislative program after Vietnam adopted the 2013 Constitution. Second, we should create modern, world-class administrative and economic institutions with overwhelming advantages compared to other regional countries. Third, we should find and introduce foreign strategic investors to the most favorable locations in terms of geo-economic conditions.”

Identifying the most favorable locations in terms of geo-economic conditions to build special economic zones is the key to the success of this model. (Photo: baodientu.chinhphu.vn)