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Vietnam Today

Thai Binh Economic Zone green lit

Released at: 16:05, 01/08/2017

Thai Binh Economic Zone green lit

Image source: cafeland.vn

Zone to be built in three phases in northern province, with completion expected in 2030.

by Quang Huy

Prime Minister Nguyen Xuan Phuc has approved the establishment of an economic zone in the northern province of Thai Binh, allowing investors to take advantage of the region’s potential for natural gas and raw material resources.

Consisting of 30 communes and one town in Thai Thuy and Tien Hai districts, and the adjacent coastal area, the Thai Binh Economic Zone is located on 30,583 ha and includes a power center, industrial zones, port and port services, resort and entertainment complexes, a distribution center for aquaculture, coastal forests, residential areas, urban areas, and an administrative hub.

The main development objective is to maximize the advantages of natural conditions and location in connecting labor, goods, and services with neighboring areas, narrowing the gap between the province and other parts of the country.

The zone is designed to closely combine investment attraction and economic development with the maintenance of national security and defense, preserving and promoting local marine eco-systems and historic and cultural relics.

The economic zone is targeted to become a synthetic and multi-sector economic area. It prioritizes the development of industries that can take advantage of the region’s potential for natural gas and raw material resources, linking developed economic zones and industrial parks in the Red River Delta.

Its establishment will combine the development of agriculture and aquaculture in areas with high quality land and abundant aquatic resources, promoting urban development, services and tourism that are suitable to the potential and needs of the region, and presents the opportunity for job creation and higher incomes.

Construction will be divided into three phases and is scheduled to be completed by 2030.

Vietnam currently has 18 economic zones offering incentives for investors, from free tariffs on selected items to lower personal income tax payments or reduced rentals and fees. There are another 325 State-supported industrial parks, which have fewer incentives.

A survey conducted by ANZ Research last year said investors were broadly positive about the country’s industrial parks because of tax incentives and the ease of customs clearance. Occupancy at operating industrial parks is more than 70 per cent.

Foreign direct investment, largely in manufacturing, has been key to Vietnam’s growth. It hit $15.8 billion last year and increased 6 per cent in the first five months of 2017 year-on-year.

Vietnam plans to open three special economic zones that will offer investors greater incentives and fewer restrictions than available to date, in the north, central and south of the country.

The Ministry of Planning and Investment is drafting a law for the special economic zones, in northern Quang Ninh province, south-central Khanh Hoa province, and Phu Quoc Island. Approval from lawmakers is expected by the end of this year.

“It will be a massive attraction for investment, which will boom next year,” Minister of Planning and Investment Nguyen Chi Dung told foreign media in May.

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