Unifying 8 contents at the Workshop "Lao Bao Joint Cross-Border Economic and Trade Zone"

This afternoon, March 15, in Lao Bao town, Huong Hoa district, the Provincial Party Committee, the People's Committee of Quang Tri province and the Government Committee of Savannakhet province (Laos) organized the workshop "The Lao Bao - Densavan cross-border economic and trade zone: From idea to reality". Standing Vice Chairman of the Provincial People's Committee Ha Sy Dong; Head of the Working Group to develop the project of the Quang Tri province cross-border economic and trade zone (Working Group 626); Head of the Provincial Party Committee's Propaganda Department Ho Dai Nam, Deputy Head of Working Group 626; Deputy Governor of Savannakhet province (Laos) Xen-xac Su-ly-xac, Director of the Department of Planning and Investment of Savannakhet province Khammouane Sy-bun-huong, Deputy Head of Working Group 1626 (Laos) chaired the workshop.

Delegates attending the workshop "Lao Bao - Densavan Cross-Border Economic Zone: From Idea to Reality" - Photo: Tran Tuyen

Attending the workshop, on behalf of the Lao PDR delegation were Permanent Vice Chairman of the Laos - Vietnam Cooperation Committee Viengsavan Vylayphon, Director of the Department of Investment Promotion, Ministry of Planning and Investment of Laos Vatthana Nolintha, Deputy Governor of Salavan Province Phuthong Khammanyvong. On behalf of the delegation of Mudhan Province, Kingdom of Thailand, Director of the Department of Commerce Lakkana Bunnum.

On the side of Quang Tri province, there were Deputy Secretary of the Provincial Party Committee, Chairman of the Provincial People's Committee Vo Van Hung; members of the Provincial Party Committee, Standing Committee of the People's Council, leaders of the People's Committee, Vietnam Fatherland Front Committee of the province; Delegation of National Assembly Deputies of the province. The workshop was attended by economic experts Dr. Tran Anh Tuan, Chairman of the Vietnam Association of Administrative Sciences, former Deputy Minister of Home Affairs; Associate Professor Dr. Tran Dinh Thien, former Director of the Vietnam Economic Institute; Dr. Tran Du Lich, Member of the National Financial and Monetary Policy Advisory Council; organizations, enterprises, domestic and international investors.

Chairman of Quang Tri Provincial People's Committee Vo Van Hung affirmed that the important goal of this workshop is to introduce the project content - Photo; Tran Tuyen

Consulting experts and the business community on the project content

Lao Bao Special Economic and Trade Zone (SEZ) was established under Decision No. 219/1998/QD-TTg dated November 12, 1998 of the Prime Minister of Vietnam with the initial name of Lao Bao Economic and Trade Development Promotion Zone, applying special preferential policies and mechanisms to promote economic and social development in the Lao Bao - Densavan border area. Over the past years, thanks to the attention and support of the Central Party, the Government, central ministries, branches and sectors, the efforts of the Party Committee, the government and the people of Quang Tri, the contributions of the business community inside and outside the province, Quang Tri has gradually promoted its potential and advantages, focused on mobilizing and effectively using all resources for investment in developing the Lao Bao Special Economic and Trade Zone, gradually forming the appearance of a border urban area, contributing to the development of Quang Tri province as well as the East-West Economic Corridor towards Vietnam.

However, up to now, due to many reasons, Lao Bao Special Economic Zone has not developed as expected; there are limitations and inadequacies in policy mechanisms that need to be removed, creating new momentum for Lao Bao - Densavan area to develop in accordance with the new context and situation.

Speaking at the opening of the workshop, Deputy Secretary of the Provincial Party Committee, Chairman of the People's Committee of Quang Tri province Vo Van Hung emphasized: Lao Bao Special Economic Zone as well as Densavan Border Trade Zone were formed based on the advantages of the region, the policy of the two Politburo of the Communist Party of Vietnam and the Lao People's Revolutionary Party since 1997, which is to build the "Lao Bao - Densavan Free Trade Zone".

Resolution No. 26-NQ/TW dated November 3, 2022 of the Politburo of the Communist Party of Vietnam on socio-economic development and ensuring national defense and security in the North Central and Central Coast regions to 2030, with a vision to 2045, sets out the policy: "Promoting economic cooperation through border gates in the region associated with the East-West Economic Corridor. Piloting the model of border gate economic zones across the border on the East-West Economic Corridor".

Next, in the Agreement on the "Cooperation Plan between the Government of the Socialist Republic of Vietnam and the Government of the Lao PDR in 2023", signed on January 12, 2023 in Vientiane, the pilot model of the border gate economic zone on the East-West Economic Corridor was included in the document signed between the two Prime Ministers.

Implementing the policy of the two countries' senior leaders, Quang Tri province has coordinated with Savannakhet province to develop the pilot project "Building a common cross-border economic zone Lao Bao - Densavan" to advise the central ministries, branches and the Governments of the two countries to implement this important policy.

Chairman of the People's Committee of Quang Tri province Vo Van Hung affirmed that the important goal of this workshop is to introduce the content of the Project, especially the unique and outstanding policy mechanisms expected to be applied in the common cross-border economic zone to get opinions from experts, scientists, relevant agencies, especially the contributions of the Vietnamese and Lao business communities.

On that basis, Quang Tri province and Savannakhet province continue to complete the Project and draft the content of the Agreement between the two Governments to submit to the Ministry of Planning and Investment - Standing Agency of the Vietnam - Laos Cooperation Committee and ministries and branches of the two countries.

The two sides hope that when the common cross-border economic zone comes into operation, it will be highly feasible, suitable to the practical situation and the Vietnam - Laos relationship in the new context and truly attractive to businesses coming to invest and do business in this potential area.

“In order for the Lao Bao - Densavan cross-border economic zone to soon come into operation and operate effectively, Quang Tri province has determined that in addition to coordinating with Savannakhet province to study and develop policy mechanisms and legal corridors, it is necessary to simultaneously adjust the planning of the Lao Bao Special Economic Zone. Coordinate with Savannakhet province to adjust the planning of the Densavan Border Trade Zone in accordance with the new development orientation and actively promote and attract businesses to invest, especially in traffic infrastructure and technical infrastructure in the Lao Bao Special Economic Zone and the Densavan Border Trade Zone,” emphasized Chairman of the Provincial People's Committee Vo Van Hung.

Deputy Governor of Savannakhet Province Xen-xac Su-ly-xac affirmed that the Provincial Government Committee is ready to support and cooperate so that the above economic zone can be officially established - Photo: Tran Tuyen

Affirming the importance of establishing the Densavan - Lao Bao cross-border economic zone, Deputy Governor of Savannakhet province Xen-xac Su-ly-xac emphasized that the provincial government is ready to support and cooperate so that the above economic zone can be officially established.

At the same time, he emphasized that the establishment of the joint cross-border economic zone will become a symbol of cooperation between Laos and Vietnam, strengthening and tightening the solidarity and friendship between Savannakhet and Quang Tri provinces. It is an important premise to encourage and promote economic cooperation, trade, investment and increasingly better economic and social development.

However, according to the provisions of the laws of the Lao PDR, the establishment of special economic zones is within the authority of the Government to consider and approve through the coordination of relevant local authorities, and must also take into account the provisions of the Agreement on national border management regulations.

Therefore, after the Provincial Government completes the research with the support of Sakae Consulting Group and the results of this Workshop, the Savannakhet Provincial Government Committee will discuss and agree with relevant sectors of the province and report to the Government for guidance on implementation according to regulations.

On this occasion, I would like to request representatives from the Central Government to support the direction, guidance and liaison with the Government to support the Densavan - Lao Bao Cross-Border Economic Zone to be officially established in accordance with the provisions of law.

Delegates attending the workshop - Photo: Tran Tuyen

Focus on clarifying feasibility and proposing incentive mechanisms and policies

In their presentations at the workshop, experts, scientists, organizations and enterprises focused on clarifying the feasibility and proposing mechanisms and preferential policies to facilitate businesses investing and doing business in the common cross-border economic zone; introducing the model of free trade zones and duty-free zones; introducing the potential, strengths and investment opportunities to strongly attract resources to invest in the Lao Bao Special Economic Zone and the Densavan Border Trade Zone... Thereby, creating a channel for direct meetings and exchanges, promoting cooperative relationships between Quang Tri province and domestic and international business organizations and investors.

Associate Professor, Dr. Tran Dinh Thien believes that it is necessary to build a comprehensive program to build and develop the Cross-Border Economic Zone - Photo: Tran Tuyen

Associate Professor, Dr. Tran Dinh Thien, Vietnam Economic Institute, said that after a process of development lacking substance, experiencing ups and downs of the Border Gate Economic Zone which was identified as "national-level special, with incentives and support at the highest level that the country has", a new approach and solution to orient the construction of the Lao Bao - Densavan Cross-Border Economic - Trade Zone as a new model of fundamental and substantial development is necessary and inevitable.

It is necessary to build a comprehensive program for the construction and development of the cross-border economic zone, including projects to develop centers and other strategic priority coordinates such as airports, seaports, and Dong Ha urban area. Ensure the similarity in level, structure, and connectivity in mechanism, the basis of "cross-border" communication between the two parts of the economic zone. Regarding the operating mechanism of the Lao Bao - Densavan cross-border economic zone, it is necessary to orient towards a new model of "free trade zone" to determine specific tasks.

Dr. Tran Du Lich gave his opinion at the workshop - Photo: Tran Tuyen

Dr. Tran Du Lich emphasized that the first priority for the Lao Bao - Densavan cross-border economic zone is still to create an ecosystem and policies to attract leading enterprises to invest in the common cross-border economic zone.

Dr. Tran Anh Tuan proposed building a green - knowledge - sustainable economic zone - Photo: Tran Tuyen

Dr. Tran Anh Tuan, Chairman of the Vietnam Association of Administrative Sciences, former Deputy Minister of Home Affairs, said that regarding policies for the Joint Economic Zone, it should be noted that the State has policies to encourage and create favorable conditions to attract investment in priority industries and occupations for the development of the Joint Economic Zone, build the Joint Economic Zone in the direction of green - knowledge - sustainability, apply advanced management methods, form a civilized, modern, high-quality living environment; ensure social security, maintain political and social stability in the Joint Economic Zone. Local authorities in the Joint Economic Zone have a streamlined and reasonable administrative management apparatus, with many appropriate, effective and efficient authorities; and apply convenient administrative procedures, meeting the requirements of investors, organizations and individuals.

Representative of Hoanh Son Group speaking at the workshop - Photo: Tran Tuyen

Regarding the mechanism and policies to support businesses, the representative of Hoanh Son Group proposed to continue studying the application of the "one-stop, one-stop" inspection model with new regulations, simplifying customs procedures and inspection and control of goods and means of transport to create maximum favorable conditions for international trade activities, entry and exit, import and export, and have information connection between functional departments in the border gate area.

It is recommended that the Governments of Vietnam and Laos, and the authorities of Savannakhet and Salavan provinces pay attention to investing in and upgrading the road from Taoi town to Ban Dong, connecting National Highway 15B with National Highway 9 (Laos side) because this will be a particularly important and convenient transport route for coal and other goods from the southern provinces of Laos to Vietnam's seaports. The Government of Vietnam and Quang Tri province pay attention to investing in the Cam Lo - Lao Bao Expressway to meet the demand for freight transport that will increase sharply in the coming years.

Standing Vice Chairman of the Provincial People's Committee Ha Sy Dong presented souvenirs to delegates - Photo: Tran Tuyen

Agree on a unified approach to the model of two countries, two economic zones but with a common economic space

Concluding the workshop, Permanent Vice Chairman of the Provincial People's Committee Ha Sy Dong; Head of Working Group 626 thanked and accepted the profound and valuable comments of the delegates presenting at the workshop as well as the papers sent to the workshop.

The presentations and comments sent to the Workshop have mentioned quite fully and comprehensively the contents as required by the Workshop, in which they focused on analyzing, clarifying and reaching a high consensus on a number of contents: Affirming the policy of piloting the construction of the Lao Bao-Densavan cross-border economic zone is the correct policy of the high-ranking leaders of Vietnam and Laos, hoping that the new cooperation model between the two countries will create a new development space of a cross-border nature worthy of the special friendship between the two Parties and Peoples of Vietnam and Laos.

The model of cross-border economic zones and free trade zones has not been implemented in Vietnam but has been widely deployed in many countries around the world and has been effective in practice. The "common" regulations on simplification and harmonization of policies and procedures approaching common standards of international trade ensure a balance with the legal compliance requirements of countries.

In the trend of globalization, the pilot application of models of cross-border economic zones and free trade zones in Vietnam is necessary to have a basis for replication. However, to implement it, there must be adjustments, promulgation of policy mechanisms and synchronization of some legal regulations between Vietnam and Laos. This is a new and difficult issue but has been approved by the two Politburo and Governments of the two countries.

Experts at the Workshop affirmed that the current new situation and future development trends pose new requirements and approaches, policy mechanisms must be "unusual", the level must be "special", large enough, need "breakthrough" thinking, approaches and solutions, pilot testing of "high-level institutions", ensuring similarities and connectivity of "cross-border" mechanisms and policies between the two economic zones of the two countries. The development orientation of the common cross-border economic zone must aim towards a new model of "Free Trade Zone", which is to form "new generation" international logistics centers, "green development" industrial parks, associated with smart and creative urban areas.

The system of operating mechanisms needs to aim towards an institutional standard system for international free trade zones. Quang Tri province needs to closely coordinate with localities that are researching and building free trade zones such as Hai Phong and Da Nang, and refer to the mechanisms that are being applied on a pilot basis by localities (Hanoi, Ho Chi Minh City, Thanh Hoa, Nghe An) to propose preferential mechanisms applicable to the common cross-border free trade zone.

Agreeing to approach the model of two countries with two economic zones, Lao Bao Special Economic Zone of Vietnam and Densavan Border Trade Zone of Laos but with a common economic space, that is, applying a number of mechanisms and preferential policies higher than the legal regulations of each country to strongly attract investors, create favorable conditions for businesses in production and business activities, and at the same time create the most favorable conditions for travel and exchange of goods of residents in the common cross-border economic zone, allowing Vietnamese workers to work on projects in Densavan Border Trade Zone higher than the rate prescribed by the Lao State.

At the workshop, the leaders of Quang Tri and Savannakhet provinces agreed to propose relevant ministries and branches of the two countries to advise the Governments of Vietnam and Laos to sign an agreement on piloting the construction of the Lao Bao - Densavan cross-border economic zone as a legal basis for Quang Tri and Savannakhet provinces to have a basis to build coordination regulations in the management and operation of the common cross-border economic zone.

At the same time, continue to coordinate with relevant ministries and branches of the two countries to develop, promulgate, and advise the Government to promulgate regulations and guiding documents for implementation. Enterprises investing in the common cross-border economic zone wish to have their rights protected by the laws of the two countries according to the investment certificates granted during the operation period (the period of land allocation and land lease). The pilot policy mechanisms must stipulate a suitable minimum period for enterprises to feel secure in investing, and any changes in policies for enterprises must be in a direction that is more beneficial to the invested enterprises.

At the Workshop, a lot of information about large-scale investment projects in Savannakhet and Quang Tri provinces that are being implemented and researched by investors has affirmed the potential to attract investment and development advantages of the Lao Bao - Densavan cross-border economic zone in the future.

The workshop acknowledged the contribution of CT Strategies (CTS), an international consulting firm from the United States, in coordinating with Quang Tri province and relevant ministries and branches of Vietnam and Laos to study pilot policy mechanisms for the operation of duty-free zones and free trade zones in the common cross-border economic zone.

The establishment of the Lao Bao - Densavan Cross-Border Economic and Trade Zone promises to be a “new breeze”, a new destination for investors, creating new opportunities for residents on both sides of the border in economic and social development. Lao Bao - Densavan will become a “golden address”, bustling on the East - West Economic Corridor.

From the results of this important workshop, Quang Tri province and Savannakhet province will continue to complete the Project and draft Agreement to submit to the competent authorities of Vietnam and Laos.

Thanh Truc

Source: https://baoquangtri.vn/thoi-su/thong-nhat-8-noi-dung-tai-hoi-thao-khu-kinh-te-thuong-mai-xuyen-bien-gioi-chung-lao-bao-densavan-tu-y-tuong-den-hien-thuc/184160.htm