At the end of the meeting on the afternoon of April 21, upon its members’ approval, the Standing Committee of the National Assembly decided to add to the program of law and ordinance development in 2022 the draft Resolution of the National Assembly on piloting a number of mechanisms and policies specific to the development of Khanh Hoa Province.

Previously, Minister of Planning and Investment Nguyen Chi Dung, who was authorized by the Government to read the report, said that the draft Resolution includes 10 specific policies and mechanisms, six of the ten specific policies have been approved by the National Assembly to apply in some localities before.

The application of these specific mechanisms to Khanh Hoa Province does not increase the government's overspending and public debt ceiling but will increase the province’s autonomy and responsibility.

Notably, in this draft Resolution, the Government proposes to have a specific mechanism to attract strategic investors to priority development sectors and fields in the Van Phong Economic Zone.

This is an economic zone that is oriented by the Government to be a center of high-class, different and modern general tourism and entertainment services by 2040 with a vision to 2050.

Accordingly, to become a strategic investor, an investor must meet three conditions including financial capacity, experience with the field and industry to invest in.

Moreover, investors must commit themselves to providing training in human resources and staff development and ensuring security and defense conditions by a written document. The selection and procedures for selecting strategic investors must be transparent and clear, ensuring that they are really capable investors.

Through examining the report, the Finance - Budget Committee said that, in fact, the infrastructure of Van Phong Economic Zone is still very limited, it is necessary to mobilize non-budget investment capital to build infrastructure, deploy large projects with practical incentive policies and need to encourage enterprises to invest in scientific and technological research and development suitable to industries attracting investment and promote decentralization for localities.

Therefore, responsible agencies proposed the Drafting Board consider the addition of a number of policies such as the pilot application of a mechanism allowing businesses in Van Phong Economic Zone to receive additional deductions for expenses on research and development (R&D) expense when determining taxable income.

In addition, it is necessary to decentralize the People's Committee of Khanh Hoa Province to decide on investment policies for projects of strategic investors in Van Phong Economic Zone under the authority of the Prime Minister.

Many members of the Standing Committee of the National Assembly agree with this view. Therefore, upon consideration of the provisions on preferential treatment for strategic investors without new and breakthrough policies, National Assembly Chairman Vuong Dinh Hue proposed allowing businesses to receive additional deductions for expenses on research and development when determining taxable income which is a very popular method in the world.

With the decentralization regulation for Khanh Hoa Provincial People's Committee to decide on investment policies for projects of strategic investors in Van Phong Economic Zone under the authority of the Prime Minister, Mr. Vuong Dinh Hue announced to support this decision at talk with the Prime Minister.

Following the opinion of the Standing Committee of the National Assembly on incentives for investors in Van Phong Economic Zone, Minister Nguyen Chi Dung admitted that investors in Van Phong EZ have not satisfied with the incentives relating to land ownership, visa exemption, tax reduction, and administrative procedures.

Speaking at the session, Mr. Nguyen Hai Ninh, Secretary of Khanh Hoa Provincial Party Committee, affirmed that if decentralized to decide on investment policies for projects in Van Phong Economic Zone under the authority of the Prime Minister, the province would just apply to several strategic investors.

In concluding the discussion session, Vice Chairman of the National Assembly Nguyen Duc Hai proposed to the Drafting Committee to supplement the preferential mechanism as noted by the National Assembly Chairman to create more impetus for Van Phong Economic Zone.

Currently, eight provinces and cities nationwide have applied the specific mechanism, including Ho Chi Minh City, the Central City of Da Nang, Hanoi, the Northern City of Hai Phong, the Northern Province of Thanh Hoa, the central provinces of Nghe An, Thua Thien - Hue, and the Mekong Delta City of Can Tho.

Source: Sai Gon Giai Phong