Vietnam to open three special economic zones

HANOI: Vietnam plans to open three special economic zones that offer investors greater incentives and fewer restrictions than available to date in the country, the investment minister said.

Foreign direct investment, largely in manufacturing, has been key to Vietnam’s growth. It hit a record of US$15.8 billion (RM67.8 billion) last year and has risen 6% in the first five months of 2017 from a year earlier.

The new economic zones will be in the north, centre and south of the 1,650km long country, Planning and Investment Minister Nguyen Chi Dung told Reuters in an interview on Tuesday.

The ministry is drafting a law for the zones in northern Quang Ninh province, central Khanh Hoa province and southern Phu Quoc province. Approval from lawmakers in the communist state is expected by the end of 2017.

Dung said the zones would be free from local regulations to make them competitive internationally.

“It will be a massive attraction to investment and investment will boom next year,” Dung said.

“It will be outstanding in everything: free and favourable in every aspect.”

Vietnam currently has 18 economic zones, offering incentives for investors from free tariffs in selected items to lower personal income tax or reduced rent and fees.

There are another 325 statesupported industrial parks, which have fewer incentives.

A survey by ANZ Research last year said investors were broadly positive about the industrial parks because of tax incentives and the ease of customs clearance. Occupancy in operating industrial parks is more than 70%.