Hanoi (VNA)  - The Ministry of Planning and Investment(MPI) has proposed major incentives including prolonged income tax exemptionsfor businesses and individuals working in special economic zones in three provinces.

The investment incentives are contained in a draft Law on SpecialAdministrative-Economic Units that the ministry has prepared for submission tothe Government and the National Assembly (NA).

The special economic zones are Phu Quoc in Kien Giang province, Van Don in QuangNinh province and North Van Phong in Khanh Hoa province.

The MPI is suggesting an income tax exemption of five years for individualsliving and working in these zones, and a 50 percent income tax break in theremaining years until 2030.

This applies to “managers, scientists and qualified experts, as well asbusinesses, workers and other economic factors,” the draft says.

The draft is slated to be passed by the National Assembly at its meeting inOctober this year.

The MPI has also asked Phu Quoc to give its own incentives, such as increasingadditional income for civil servants working here from 30 percent to 50 percentof their base salary.

It has also suggested that in order to encourage investment, local administrationsof the special zones are allowed to grant permanent residency to foreigninvestors with projects worth 5 million USD and above who stay for a minimum offive years in Phu Quoc without breaking any Vietnamese law.

The MPI also considers Phu Quoc’s infrastructure to be developing with balanceand forethought, with many high quality resorts operating successfully. Itnotes that the Politburo has permitted the island to build a casino whereVietnamese citizens would be allowed to gamble.

[Radical proposal🐼s for special administrative-economic zones]

To turn Phu Quoc into a commercial, service and shopping hub of worldstandards, the MPI considers this the only special economic zone to havepriority for developing its fisheries and manufacturing sectors.

The island is seen as having numerous advantages, despite its distance from themainland and having just two major access points via air and sea. It is blessedwith great weather, 63.2 percent of fertile agricultural land, scenicmountains, forests and beaches, and great potential to develop a large,diversified fisheries sector.

The other two zones, Van Don and North Van Phong, should also receive similarpreferential treatment, the MPI says.

Van Don should focus more on developing ecotourism and sea travel and hi-techagriculture, while North Van Phong should utilise its geographic advantage todevelop deep water ports, logistics, medical and convalescence resorts, itsays.

The ministry hopes that the Law on Special Administrative-Economic Units willcreate frameworks that surpass existing ones so that the zones can compete withother countries in attracting foreign investment, open doors for strategicinvestors and boost the merger and acquisition market.-VNA