The economic zone model is prioritized by many localities to increase their competitive advantage.

Many localities are proposing to add economic zones to their planning, viewing them as a competitive advantage in attracting investment.

Prioritize investment in economic zones.

The economic zone model is a preferred choice for many localities to attract resources for socio-economic development. The Ministry of Planning and Investment reported to National Assembly deputies on the state management of economic zones – one of the issues raised by deputies during the 8th session of the 15th National Assembly.

The practical development of established economic zones, such as Dung Quat, Vung Ang, Nghi Son, and Dinh Vu - Cat Hai, has demonstrated that the formation of economic zones opens up many opportunities and creates momentum to promote regional economic development through investment incentives, a synchronized infrastructure system, and conditions for the concentrated development of large-scale industries.

Currently, the economic zone model continues to be prioritized for development in many localities to increase their competitive advantage in attracting investment.

For example, Quang Ninh Province has established five economic zones, including three border economic zones and two coastal economic zones. Hai Phong has established the Dinh Vu – Cat Hai economic zone and proposed the establishment of a second coastal economic zone. Several southern localities, such as Ninh Thuan , Binh Thuan, and Ben Tre, have also proposed adding economic zones to their planning.

Currently, most investment projects in the manufacturing sector, especially those with large capital investments, choose industrial parks and economic zones as their investment locations. Examples include Samsung, LG, Lego, Pandora, and Formosa.

Complete decentralization to local authorities.

The Ministry of Planning and Investment reported that the authority to decide on the direction and mobilize resources for the development of economic zones has been thoroughly decentralized to local governments. These aspects are specifically stipulated in Decree No. 35/2022/ND-CP on the management of industrial parks and economic zones.

Specifically, local authorities have the responsibility to lead the development and implementation of economic zone development plans within their jurisdiction; organize the preparation and approval of tasks and general planning projects for the construction of economic zones…

Local authorities have the right to decide how to use state budget funds to invest in or support investment in technical infrastructure systems inside and outside economic zones.

Local authorities also have the right to direct the implementation of investment procedures for investment projects in the construction and operation of infrastructure within functional zones in economic zones during the period before the establishment of the industrial park or economic zone management board as stipulated by investment law; and to issue specific preferential policies and incentives in accordance with the law to prioritize the recruitment and employment of local labor, highly skilled labor, and skilled workers.

Local authorities also have the power to issue conditions and criteria for businesses and investors to be given priority in leasing or subleasing land in accordance with the law…

The result is that a large amount of investment capital has been attracted, supplementing important resources for development investment and contributing to promoting economic growth.

Accelerating the process of industrialization and modernization, transforming the development space, promoting inter-sectoral and inter-regional linkages, and creating an important foundation for long-term growth.

Contributing to job creation, labor restructuring, increased labor productivity, and improved quality of human resources; actively contributing to environmental protection and implementing green growth strategies…

A law on industrial zones and economic zones is needed.

The Ministry of Planning and Investment proposes studying the development of a Law on Industrial Parks and Economic Zones, ensuring the promotion of industrial park and economic zone development to meet the requirements of industrialization and modernization in the new situation; while also responding to new global trends such as the green economy, digital economy, circular economy, and green energy.

The basis of this proposal lies in the limitations of industrial park and economic zone development that the Ministry of Planning and Investment has mentioned. These include the fact that the quality and effectiveness of planning do not meet requirements, land use efficiency is not high, and the central government budget allocated for industrial park and economic zone development is limited.

According to the Ministry of Planning and Investment's explanation, one of the main reasons is that the institutions and laws related to industrial parks and economic zones are not yet complete, lack uniformity, and have not made breakthroughs to adapt to development requirements and create new directions for the development of industrial parks and economic zones.

The legal framework governing industrial parks and economic zones is not yet strong; the legal framework regulating their operations is fragmented and insufficient, currently limited to the Decree level. Meanwhile, the operation of industrial parks and economic zones involves many different areas regulated at the law level, such as planning, investment, enterprises, land, construction, environmental protection, housing, and labor.

Vietnam's investment incentive and support policies in general, and those of industrial parks and economic zones in particular, are still ineffective and lack the differentiation needed to guide investment flows.

Locally, a system of management boards for industrial parks and economic zones has been established, performing the function of direct state management over these zones.

However, regulations regarding the position, functions, tasks, and organizational structure of the management boards of industrial parks and economic zones are unclear, unstable, inconsistent, not fully decentralized, and lack a complete legal basis for implementing the government's policy of administrative procedure reform based on the one-stop-service model.

Therefore, in the coming period, researching and developing a Law on Industrial Zones and Economic Zones is necessary.

In addition, the Ministry of Planning and Investment recommends strengthening decentralization and delegation of authority to localities, ensuring the effective implementation of the "one-stop shop" model in managing investment and development of industrial parks and economic zones.

To date, the country has 26 border economic zones located in 21 out of 25 land border provinces, with a total area of approximately 775.8 thousand hectares; 18 coastal economic zones have been established with a total area of 857.6 thousand hectares, of which the land area is approximately 568.4 thousand hectares (accounting for 1.68% of the total area of the country) in 17 out of 28 coastal provinces and centrally-governed cities.

Specialized economic zones are a new type of economic zone added in Decree No. 35/2022/ND-CP, therefore no specialized economic zones have been established to date.

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