VietNamNet Bridge – As for developing countries, special
economic zone is considered a reasonable model that helps develop the national
economies. However, the facts have not substantiated this in Vietnam.
Special economic zones once existed in Vietnam
The first special economic zone
was the Vung Tau – Con Dao Special Zone, which was established following the
National Assembly’s Resolution released in May 1979.
Vu Tuan, on behalf of the then
government council, when presenting about the plan to set up the Vung Tau – Con
Dao project, emphasized that the special economic needs to be established to
serve the development of the oil and gas industry.
After 12 years of operation, the
special economic zone was dissolved in 1991, following by the important event
of the establishment of a new province – Ba Ria-Vung Tau. There was not much
explanation about the decision. However, opinions from the well informed circle
said the model of special economic zone could not bring any differential
things.
The country’s oil and gas
industry made a big leap in its development during the 12 years. However, this
should be explained by the natural resources and the international support, not
by the existence of the special economic zone.
As such, in thoughts of
Vietnamese people, the first special economic zone development plan failed
completely.
Minister of Science and
Technology Nguyen Quan, in a recent workshop, when recalling that time, said:
“We did not go to the last gasp, while developing special economic zones needs
this.”
The 15 economic zones
However, despite the dissolution
of the Vung Tau-Con Dao special economic zone, the idea of developing special
economic zones has never fallen into oblivion as people thought.
Local authorities and state management
agencies still believe that it’s necessary to develop economic zones which
serve as the motive force leading the national economy to develop.
Therefore, a new movement of
setting up economic zone was triggered, which has led to the establishment of 15
economic zones out of the 18 zones programmed. The 15 economic zones cover an
area of 662 hectares.
When determining to develop
economic zones, Vietnamese local authorities recalled the Shenzhen story.
Thirty years ago, it was an underdeveloped small village. However with 100
million yuan worth of capital allocated by the Chinese government, a special
economic zone has been established, which then has made big leaps in its
development.
However, due to many reasons,
including the lack of the long term vision, a lot of economic zones remain
half-finished, or have been idle because they cannot attract investors.
The noteworthy thing is that the
economic zones cannot compete with other economic zones in the region in
attracting investors, and they finally compete with each other.
Dr Vo Dai Luoc from the Asia
Pacific Economics Center has noted that in Vietnam, there has been no open
economic zone in the true sense of the word, and that all the economic zones
established so far are simply industrial zones with many limitations.
The officials from the Ministry
of Planning and Investment have revealed that the ministry is considering
re-program the development of the economic zones. It is very likely that only
five economic zones would receive the investment from the state budget.
If this comes true, other
economic zones would turn into industrial zones as described by Luoc
What Quang Ninh expects for?
The failure with the economic
zones has made people keep doubtful about Quang Ninh province’s plan to set up
two new economic zones of Mong Cai and Van Don.
However, some experts have
expressed their support to the plan. They said that the key for developing
economic zones is a reasonable special mechanism to attract investors, and if
Quang Ninh can do that, it would succeed.
Compiled by Kim Chi
Business & Investment Opportunities
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