Free trade zones must be more innovative and 'open'

If it is general, how to implement it?

On the afternoon of May 31, the National Assembly (NA) discussed in groups the draft resolution on specific policies for the development of Da Nang City, including a new policy proposing the establishment of a Da Nang Free Trade Zone. Expressing her opinion, Deputy Head of the Delegation Nguyen Thi Thu Ha (Quang Ninh delegation) agreed with the proposal to establish a Da Nang Free Trade Zone, this is a new policy that localities have not been able to issue when developing specific policies.

However, Ms. Ha suggested that the Government should provide more documents about this model in the world so that the delegates can study it; at the same time, compare how free trade zones are different from border economic zones, high-tech industrial zones, etc., which are regulated in current laws.

Delegate Ha also assessed that according to the Government 's proposal, it is understood that when investors set up offices in free trade zones, they will receive incentives and have their administrative procedures cut. However, these contents are also available in other zones. "I propose that we clarify further to be more convincing about the outstanding advantages of free trade zones," said Ms. Ha.

Special mechanism expected to promote Da Nang city's development

Deputy Ha Sy Dong, Permanent Vice Chairman of the People's Committee of Quang Tri province, suggested that the Government have a separate project on free trade zones and not general regulations in the resolution.

"If we put it in general terms like this, how can we implement it later? Because such regulations are not consistent with current regulations and will cause conflicts. We need to separate them to build a project that clearly states which policy mechanism is superior and which law it is in," Mr. Dong suggested.

Delegate Dong cited that Quang Tri province has also piloted the construction of the Lao Bao Special Economic-Trade Zone since 2000, but by 2015, there were many shortcomings and loopholes, causing tax losses. Therefore, Mr. Dong suggested that there should be specific and clear regulations on mechanisms and policies for free trade zones when free trade zones are not yet regulated in the current legal system.

Chairman of the National Assembly's Economic Committee Vu Hong Thanh raised the question: "If there must be a separate project, when will we have a free trade zone model?". Mr. Thanh suggested: "Just pilot the establishment and consider this as a place to pilot policy mechanisms. If any policy mechanism is effective, we will replicate it outside." Mr. Thanh informed: China currently has 22 free trade zones, and the first one in Shanghai has been adjusted 6 times, from the initial 28 ^km2 , to now expanded to 200 ^km2 and is considered very successful.

However, Mr. Thanh also said that the policy mechanism for the Da Nang Free Trade Zone is "still too weak" because it mainly copies regulations from here and there that have been applied in industrial parks and economic zones.

"If the policy mechanisms are like this, will they be attractive to the free trade zones right next to us? I still want to pilot it, but the policy mechanisms must have something more innovative and open," Mr. Thanh said.

Meanwhile, Secretary of the Da Nang City Party Committee Nguyen Van Quang affirmed that the free trade zone is one of the "very noteworthy" policies in the draft resolution, demonstrating a breakthrough, daring to think and dare to do when testing a model that has been affirmed by the world but has no precedent and no practice in Vietnam.

"We know that this is risky, but we accept it. If successful, this will be a foundation for replication across the country, but the city will bear the risks," Mr. Quang shared.

Is Nghe An having 5 vice chairmen of the province a lot?

Commenting on the draft Resolution on piloting the addition of some specific mechanisms and policies for the development of Nghe An province, Deputy Nguyen Thi Thu Ha, Deputy Head of the Delegation of National Assembly Deputies of Quang Ninh province, said that the People's Committee of Nghe An province is being structured with 4 Vice Chairmen of the Provincial People's Committee. According to the draft resolution, the Government proposes no more than 5 Vice Chairmen, meaning an additional position of 1 Vice Chairman.

However, Ms. Ha cited Clause 2, Article 8 of the 2015 Law on Organization of Local Government, which clearly states: The People's Committee consists of a chairman, vice chairman and members, the specific number of vice chairmen of the People's Committee at all levels is determined by the Government. "Thus, the number of vice chairmen of the People's Committee at all levels is determined by the Government. So, whether or not it should be included in the National Assembly's resolution, I suggest that you consider further," Ms. Ha said.

Vice Chairwoman of the National Assembly's Committee on Science, Technology and Environment Nguyen Thi Le Thuy (Ben Tre delegation) said that although the submission and the review report said that there had been prior approval, she still thought that this was an issue that needed to be considered. According to Ms. Thuy, the number of vice chairmen of the provincial People's Committee should be calculated based on the population size, area as well as the complexity of local management.

Ms. Thuy cited that Hanoi, with its characteristics as the capital, large population, and large area, has a maximum of 5 vice chairmen. Or Ho Chi Minh City, which is "as big" as it is, has only 5 vice chairmen. "Now, if Nghe An has 5 vice chairmen, I think it is a bit much. Actually, if we add 1 more vice chairmen, it will not have a big impact on socio-economic development or ensure Nghe An develops as the target set when proposing specific policies in this resolution," Ms. Thuy stated.

The draft resolution also proposes to stipulate that provinces and centrally-run cities are allowed to use their budgets to support Nghe An province in carrying out socio-economic development tasks and ensuring national defense and security for Nam Dan district and the western region of Nghe An. The Finance and Budget Committee said that the majority of opinions agreed with this proposal, because it is similar to the policy that the National Assembly has allowed to pilot in Thua Thien-Hue.

However, Ms. Nguyen Thi Le Thuy said that the proposal in the draft is "very different" from the policy currently applied to Thua Thien-Hue. "This means that we are deciding to give away a part of the budget that is not ours. The budget of another province, what people want to give away is their right, they can give away whoever they want," Ms. Thuy said.

According to Ms. Thuy, in the case of Thua Thien-Hue, other localities provide support through contributions to the Hue Heritage Conservation Fund and are only for heritage conservation and development activities. As for the draft with Nghe An, this is a policy for socio-economic development of a district, of the entire western region of Nghe An, so the goals and authority are not appropriate.

"If we rely on this to allocate the budget, will it be possible to settle the accounts? Because the resolution is for Nghe An province, not for provinces with supporting budgets," Ms. Thuy questioned, and at the same time suggested that it should be regulated in a way that districts in Nghe An province support each other.

Is the mechanism shirt too tight?

Delegate Ha Sy Dong said that up to now, 10 localities have requested special policies. He raised the question: "Is our legal system too tight, no longer suitable for the socialist rule of law state, socialist-oriented market economy, and is it patronizing and restraining the autonomy of local governments, failing to promote the role of autonomy and self-responsibility of local governments?"

Although agreeing with the specific policies for Nghe An and Da Nang that are being presented to the National Assembly at this session, Deputy Dong said: "After Da Nang and Nghe An, how many more provinces and cities will apply to pilot the specific mechanism? We should have a stopping point to summarize and replicate."

Chairman of the National Assembly's Economic Committee Vu Hong Thanh also said that the specific policies of localities when submitted were almost "copied" from other localities without taking into account the characteristics of their own localities. He suggested that it is necessary to evaluate the advantages and disadvantages of previously applied policies to adjust them to suit reality, and then include them in the resolution to ensure effectiveness.

Source: https://thanhnien.vn/khu-thuong-mai-tu-do-phai-dot-pha-va-mo-hon-185240531224637997.htm