Distinct mechanisms to bolster Van Phong Economic Zone

Vietnam’s legislative body on Thursday approved a five-year scheme with special mechanisms and policies designed to boost the development of Van Phong Economic Zone in Khanh Hoa.

Van Phong EZ in the central coastal province, home to Nha Trang Bay, is a planned hub for multi-sector economic development including international container transhipment services, tourism, industry, and aquaculture.

The National Assembly approval, effective on August 1, details special mechanisms on finance, budget, land, and investment attraction in the economic zone.

Priorities given to investments in Van Phong include building an innovation center, a research and development (R&D) center; information technology, research, production and high technology transfer in the fields of ocean and maritime development with an investment capital from VND1,500 billion ($64.54 million). In addition, investors can build and operate commercial and financial centers with an investment capital of over VND12,000 billion (over $516.4 million).

Van Phong is encouraged to attract urban and property developers that would build townships of 300 hectares or more each, or a town for at least 50,000 residents.

Priorities for the zone also include building hotels, resorts, world-class complexes of entertainment facilities and golf courses with total investments of at least VND25,000 billion (over $1 billion).

Van Phong will also offer special treatment to investors of airports, seaports, and port areas belonging to special seaports.

Strategic investors in Van Phong must have a charter capital of VND10,000 billion or more, or have total assets of VND25,000 billion when implementing investment projects. They must commit in writing to training, human resources development, have to observe rules and regulations in national defense, security and environmental protection, as well as the Investment Law.

The legislative body requires the government to keep close watch on investments in projects that enjoy special mechanisms.

Regarding land management, the provincial People's Council is authorized by the Prime Minister to make decisions on changes in purpose of using rice cultivation land with sizes smaller than 500 hectares; and forests smaller than 1,000 hectares.