VietNamNet
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– A lot of provinces and cities are planning to open new economic zones to
attract more investments. Meanwhile, experts have pointed out that the movement
of establishing economic zones should be seen as a threat rather than a joy.

More and more economic zones drawn up

In September
2008, the Prime Minister approved the master plan on developing coastal
economic zones in Vietnam by
2020, under which, Vietnam
will have 15 economic zones by that time.

However, the
plan is in danger of being broken because more and more provinces and cities
want to develop economic zones in their localities. Most recently, the project
on Ninh Co economic zone in Nam Dinh was drawn up and the project was agreed
on, in principle, to be added into the list of economic zones by 2020.

Besides, the
Thai Binh coastal economic zone project has also been added into the above said
master plan.

Meanwhile,
local authorities still continue “drawing” more economic zones on paper. If traveling
along the 1A Highway, one can easily realize that the sign board of Nghi Son
Economic Zone and the sign board of Dong Nam Nghe An are located just ten
kilometers apart. However, in a recent investment promotion conference, a
leader of Nghe An province still spoke out the idea of establishing another
economic zone – Nam Thanh Bac Nghe – on the land strip which connects the two
above said economic zones.

Where to find capital for economic
zones?

Local
authorities have their reasons to plan to set up economic zones. Economic zones
are considered the most effective tool to attract investment because they offer
attractive investment incentives.

Moreover,
since economic zones are considered a “national development policy”, every
economic zone can receive support from the State in building infrastructural
components – a very important factor for the development of localities.

The Decision
No 126 guiding the capital support mechanism for infrastructure development of
coastal economic zones released in October 2009 stipulates that the state
budget will give support in four key works.

First, it
will give capital support to the building of the main transportation route in
the coastal economic zones, and of the transportation system connecting the
economic zones with the outer transportation system.

Second, it will
support compensation for site clearance for the projects in economic zones
which are considered as having important significance in the development of
some certain business fields and have the total investment capital of 20
trillion dong and higher.

Third, it
will support compensation for site clearance and in the building of the
residential quarters for workers and resettlement areas for those people who
have land seized for the site clearance.

Fourth, it
will support building solid waste treatment works and concentrated waste
treatment system in industrial zones and non-tariff zones in the economic
zones.

With so many
benefits, it is understandable why all localities want to have economic zones
of their own. However, a question has been raised that where the capital can be
found to establish so many economic zones.

Professor
Tran Phuong spoke frankly in a recent workshop and said that the building of 15
economic zones is an unreasonable undertaking, because it is unendurable for
the state budget.

Meanwhile,
experts have pointed out that with too many economic zones, the investment
incentives offered by different localities have become nearly the same. A
leader of the Chu Lai Open Economic Zone also said that Chu Lai has become less
attractive, because many other localities also have economic zones and they
also offer investment incentives.

“Nearly all
provinces in the central region have economic zones which also offer similar
investment incentives like Chu Lai. They will be competing fiercely with Chu
Lai in attracting investment,” he said.

Source: Thoi bao Kinh te Vietnam