The National Assembly has recently approved special mechanisms and policies for the development of Danang City, including the pilot establishment of a free trade zone. However, significant challenges remain to fully realize this policy. Many limitations of the pilot model The first limitation is the absence of a corresponding legal framework for the free trade zone, given that it is a pilot model. The existing legal system only addresses business activities related to economic zones, export processing zones, and bonded warehouse areas, but it lacks specific regulations for free trade zones. While free trade zones share similar functions with these other zones, they are distinct in offering greater openness, freedom, and incentives to attract investment. Consulting agencies have adapted the preferential mechanisms of industrial zones, economic zones, and export processing zones to advise the Government and the National Assembly on the special mechanism for the Danang free trade zone. These include incentives for corporate income tax, import-export tax, land rent, and infrastructure development. However, unlike in other countries where businesses can conduct import-export, transport, and storage activities within free trade zones without registering for business in those zones, such provisions are not included in the Danang pilot model. The second […]
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