Da Nang City established a Free Trade Zone

Accordingly, the Resolution, comprising 4 chapters and 18 articles, stipulates the organization of urban government and the piloting of several specific mechanisms and policies for the development of Da Nang City regarding financial and state budget management; investment management; planning, urban, resource, and environmental management; priority sectors for attracting strategic investors to the city; the establishment of the Da Nang Free Trade Zone; investment in the development of semiconductors, artificial intelligence, information and communication, science and technology management, and innovation.

The resolution stipulates that the local government in the city consists of the City People's Council and the City People's Committee. The local government in the city's districts is the District People's Committee. The local government in the city's wards is the Ward People's Committee. The organization of local government in other administrative units of the city is carried out according to the provisions of the Law on Organization of Local Government.

The City People's Council performs the duties and powers stipulated in the Law on Organization of Local Government, other relevant legal provisions, and the following duties and powers: deciding on the State budget revenue estimates in the area; deciding on the long-term, medium-term, and annual socio -economic development plans of the city; approving the establishment, dissolution, merger, division, and adjustment of administrative boundaries of districts and wards…

The implementation of investment projects under the public-private partnership (PPP) method is regulated as follows: In addition to the sectors stipulated in the Law on Public-Private Partnership Investment, the city may apply the PPP method to investment projects in the fields of sports , culture, and the construction and operation of market infrastructure. The total investment for a project to construct and operate market infrastructure shall not be less than 100 billion VND. The minimum total investment for PPP projects in the sports and culture sectors is determined by the City People's Council. The City People's Committee issues the service fees for renting sales space in markets to be included in the bidding documents for selecting investors…

The resolution also mandates the establishment of the Da Nang Free Trade Zone in conjunction with Lien Chieu Seaport, comprising functional zones as stipulated in the Prime Minister's establishment decision, including a production zone, a logistics center, a trade and service zone, and other types of functional zones as prescribed by law.

The functional zones within the Da Nang Free Trade Zone are separated from the outside area by a solid fence, ensuring customs inspection, supervision, and control by the customs authorities, as well as state management activities in their respective fields by relevant agencies in accordance with the law.

Regarding authority, the Resolution stipulates that the Prime Minister shall decide on the establishment, adjustment, and expansion of the boundaries of the Da Nang Free Trade Zone.

The People's Committee of Da Nang City shall organize the preparation, appraisal, and approval of local adjustments to the city's master plan within the boundaries of the Da Nang Free Trade Zone, ensuring consistency after obtaining written agreement from the Ministry of Construction; the People's Committee of Da Nang City shall approve the investment policy for the construction and business of infrastructure projects in functional areas within the Da Nang Free Trade Zone.

Chairman of the National Assembly's Finance and Budget Committee, Le Quang Manh, presented the report on the acceptance and explanation of the draft Resolution.

Earlier, presenting the report on the acceptance and explanation of the draft Resolution of the National Assembly on the organization of urban government and piloting some specific mechanisms and policies for the development of Da Nang City, the Chairman of the National Assembly's Finance and Budget Committee, Le Quang Manh, stated that, in response to the opinions of National Assembly deputies, the Standing Committee of the National Assembly had directed the verification agency to coordinate with the drafting committee to thoroughly review the policies in the draft Resolution, avoiding legal conflicts and obstacles in implementation.

Regarding the pilot project to establish a Free Trade Zone (Article 13), the Standing Committee of the National Assembly stated that the pilot project to establish a Free Trade Zone is a major policy with sufficient political and legal grounds; if successfully implemented, it will create a foundation to promote socio-economic development of Da Nang City and the entire region.

However, this is a new policy, not yet implemented in Vietnam. The resolution is pilot in nature, therefore, caution is needed, with sure steps, and regulations should not be included on issues that have not been thoroughly assessed or carry high risks.

Furthermore, policies need to be studied and developed based on the organizational capacity, financial resources, and conditions of Da Nang City. Therefore, at this time, the Standing Committee of the National Assembly proposes to retain the scope of the policies as in the draft Resolution.

Source: https://kinhtedothi.vn/thanh-pho-da-nang-duoc-thanh-lap-khu-thuong-mai-tu-do.html