The National Assembly Standing Committee called for a freeze on the building of new economic zones at a meeting on their operations on December 15.
Tan Thanh Economic Zone in Lang Son Province
The committee said, that the construction of such large numbers of economic zones has restricted efficiency in their operations. Many zones are facing capital shorfalls for infrastructure development, which discourages investors. Pollution is also among the main problems at many of the zones, the committee added.
It will recommend the selection of 3-5 key coastal economic zones to the National Assembly for consideration, to focus resources on their development.
According to the committee, the Government should prioritise economic zones near borders with good infrastructure and other advantages; while those with lower operating efficiently should be turned into industrial parks or trade centres.
The operation of border economic zones has not seen the demand that was expected due to bad management, failure to attract investment, lack of infrastructure and slow progress in land clearance.
According to the Government report, Vietnam has 15 coastal economic zones covering a total area of 662,249 ha. The zones have attracted a total investment of around USD50 billion from local and foreign investors. They are expected to earn total revenues of USD8 billion and export about USD800 million in goods.
The report showed that 28 border economic zones have been licensed so far, attracting 70 foreign-invested projects totaling over USD700 million and more than 500 local projects capitalised at USD1.9 billion.
