Vietnam will pilot an international financial center in the central city of Danang, according to a draft resolution prepared for the National Assembly, the country’s parliament.
The aim is to immediately optimize current advantages of Vietnam and Danang to catch the trend of shifting investment capital flows from traditional financial markets, the Ministry of Planning and Investment, the drafter, said in a statement.
The ministry is collecting public feedback on a resolution on piloting the organization of urban government models and a number of specific mechanisms and policies for Danang’s development.
According to the ministry, the international financial center will operate under the model of an offshore financial center and a separate financial area with open and highly competitive tax and supervision regulations.
The model should be immediately piloted to optimize Vietnam's current advantages and limit potential risks as the nation progresses towards setting up a “complete international financial center, creating opportunities and motivation for Vietnam’s socio-economic development in general and that of Danang in particular,” the ministry said.
The draft also proposes to pilot the establishment of a free trade zone (FTZ) associated with Lien Chieu Port with a number of specific mechanisms and policies that create a driving force for Danang's breakthrough development.
The FTZ will house a range of activities including processing for export, logistics and trading in duty-free goods. Enterprises operating in the zone will not only enjoy the same investment incentives as those for economic zones, but also special policies meant to create breakthroughs for the city.
The municipal government will be allowed to adjust the FTZ plan approved by higher authorities and acquire land for its construction.
Once operational, this would be the first FTZ in Vietnam.