Control and prevent the behavior of 'hiding behind' free trade zones

Approval of investment policy for project over 2,300 billion VND

On the morning of May 13, authorized by the Prime Minister, Minister of Finance Nguyen Van Thang presented the draft Resolution of the National Assembly to replace Resolution No. 35/2021/QH15 on piloting a number of specific mechanisms and policies for the development of Hai Phong city. The draft resolution stipulates 6 major policy groups with 41 specific policies.

Regarding investment management, the City People's Committee approved the investment policy for the investment project to build new ports and new port areas with an investment capital of VND 2,300 billion or more at Hai Phong seaport.

Minister of Finance Nguyen Van Thang. Photo: Nhu Y.

The Government affirmed that the above pilot proposal will create favorable conditions for localities to be proactive and flexible, attract investors, and soon put projects into operation.

In addition, the draft resolution also allows the People's Committee of Hai Phong city to regulate the selling price of apartments for subjects according to regulations, ensuring public and transparent implementation, avoiding loss and waste.

Notably, regarding the establishment of a free trade zone (FTA) in Hai Phong, Mr. Thang said that this policy creates a legal corridor to pilot outstanding, breakthrough mechanisms and policies to attract investment, finance, trade, services to promote exports, industry, research and development (R&D) activities and attract high-quality human resources.

In order to promote investment attraction, the draft resolution stipulates a number of specific preferential policies such as simplifying administrative procedures in investment and business procedures; import and export procedures; immigration, temporary residence and work permit procedures; land procedures, construction investment.

In addition, the new draft resolution also provides other policies such as optimizing investment incentives on land rent, water surface rent, taxes; other investment and business activities in the commercial zone and allowing foreign bank branches to open transaction offices in the commercial zone outside the branch headquarters.

Clarifying the impact on economic growth

Reviewing this content, Chairman of the National Assembly's Economic and Financial Committee Phan Van Mai said that the pilot establishment of a commercial zone is necessary, demonstrating the political determination of Hai Phong and the Government, with sufficient political and legal basis. However, this is a big issue, not only economic in nature but also related to national defense, security, order and social safety.

Chairman of the National Assembly's Economic and Financial Committee Phan Van Mai. Photo: Nhu Y.

The auditing agency proposed clarifying the impact on economic growth, budget, society; regional spread...; risk management mechanism, monitoring mechanism to ensure openness while maintaining financial safety, economic security, social order; responsibility in implementation of relevant individuals and organizations.

Regarding the pilot policy, the draft stipulates tax incentives in the commercial zones. The review agency agrees with the application of corporate income tax incentives because they are similar to those applied to economic zones; however, the application period is longer.

The auditing agency recommends considering the incentive period; in case the enterprise is subject to global minimum tax, it must pay tax according to the corresponding regulations.

Regarding the policy of goods transit, the inspection agency proposed to clarify the process and management and control mechanism for goods transit activities to strictly control and prevent "disguised" investment activities, taking advantage of new regulations of the free trade zone to illegally transit to a third country.

The draft resolution stipulates: The City People's Council is allowed to decide to use the remaining salary reform fund of the city budget and allow lower-level budgets to use the remaining salary reform fund to spend on increased average income for cadres, civil servants, and public employees, at a level not exceeding 0.8 times the salary scale, position, or salary level according to job position, title, or leadership position.

Luan Dung

Source: https://tienphong.vn/kiem-soat-ngan-chan-hanh-vi-nup-bong-khu-thuong-mai-tu-do-post1741714.tpo