The formation of the free trade zone is expected to create an outstanding comparative advantage for Vietnam, with other countries in the Southeast Asian region in particular and the world in general, given a new stage of development. It will also help develop Ba Ria-Vung Tau into a national marine economic centre.
Ba Ria-Vung Tau has a system of deep-water seaports spanning nearly 20km, which is classified as a national special one and serves as a gateway to the East Sea of the southern region. The local Cai Mep-Thi Vai is now the only port cluster in Vietnam that accommodates ships carrying containers directly to Europe and America, without transhipment through a third country.
The province has identified tourism development, as one of its important economic pillars toward becoming a high-quality, world-class tourism hub. Currently, the local tourism activities mainly take place in the Vung Tau - Long Hai - Phuoc Hai - Binh Chau national tourist areas, as well as on Con Dao Island.
The 16-island archipelago of Con Dao is located 180km from Vung Tau City and about 230km southeast of Ho Chi Minh City. It has a land area of nearly 6,000ha and a water surface of 14,000ha.
It is well known for beaches with white sand, deep blue water and colourful coral reefs. French colonialists and the Americans turned the island into a prison, to jail Vietnamese revolutionary soldiers in wartime. The facility has attracted many local and foreign visitors in recent years.
The province, meanwhile, boats the strength and potential to become a quality tourism and resort centre of international standard. It has a coastline spanning some 300km and the Con Dao national park, which was internationally recognised as Vietnam’s first-ever sea Ramsar site. The park is home to 1,077 species of vascular plants, 155 species of fauna, and one of the richest and most diverse coral reefs in the country. National historical and cultural relic sites, coupled with many traditional festivals of coastal people, also make the province attractive to visitors.
According to Chairman of the People's Committee of Ba Ria-Vung Tau province Nguyen Van Tho, Resolution No. 24-NQ/TW dated October 7, 2022, of the Politburo on socio-economic development and assurance of national defence and security in the Southeast region to 2030, with a vision to 2045, has special significance for the development of the Southeast region in general and Ba Ria-Vung province in particular.
The guideline of forming the Cai Mep Ha free trade zone is not a preferential mechanism for Ba Ria-Vung Tau province, but a specific mechanism for the whole Southeast region. The project will create an effective economic tool so that Vietnam can compete with other countries in the region and the world, in attracting investment and implementing the new phase of its industrialisation strategy. At the same time, the project is also the driving force for the Southeast region, to make greater contributions to the development and common prosperity of the whole country.
According to the General Director of Vietnam Maritime Corporation Nguyen Canh Tinh, Ba Ria-Vung Tau province has a coastline of about 300km; the multimodal transport infrastructure system has continued to be synchronously invested. Therefore, the formation of the Cai Mep Ha free trade zone in association with the 300km East-West urban-industrial corridor, will bring many benefits to the regional and national economy.
Vice Chairman of the Vietnam Seaports Association Tran Khanh Hoang shared that having a free trade zone not only attracts investors and creates economic value, but seaports also benefit. Not to mention, the Cai Mep Ha area, although small in area, has a deep-water port.
Resolution No. 24-NQ/TW dated October 7, 2022, of the Politburo on socio-economic development and assurance of national defence and security in the Southeast region to 2030, with a vision to 2045, has special significance for the development of the Southeast region in general and Ba Ria-Vung province in particular.
Chairman of the People’s Committee of Ba Ria-Vung Tau province Nguyen Van Tho
However, to form a free trade zone associated with seaports, there is still much work to be done. That is, it is necessary to have a separate mechanism to develop the Cai Mep Ha free trade zone, not only with preferential tariffs but also incentives in terms of land, labour and related services.
It is required coordination among ministries, sectors and localities to develop an effective and transparent management system for the free trade zone. There should be a link between businesses inside and outside the free trade zone, to create a high-value chain for import and export goods.
According to the Chairman of the People’s Committee of Ba Ria-Vung Tau Province Nguyen Van Tho, right after the Government issued Resolution No.154/NQ-CP, on the Government's action programme to implement Resolution No.24, the Government assigned Ba Ria-Vung Tau Province to take the lead in maintaining and developing projects, to complete the construction and development of the Cai Mep free trade zone and submit to the Government in 2023.
Accordingly, to be ready for the formation of the Cai Mep Ha free trade zone, Ba Ria-Vung Tau province has actively updated the policy of developing the free trade zone, into the provincial planning in the 2021-2030 period, with a vision to 2050; organising the planning of Cai Mep Ha logistics centre with an area of more than 1,686ha; urgently determining the location and size of the free trade zone.
At the same time, the province has also developed a strategy to attract investors with sufficient financial capacity and management capacity to the free trade zone, focusing on the province's key economic sectors, such as high-tech industry, seaport-logistics, tourism-trade, technology-finance, digital economy; suitable models in the world, creating strong attraction for investors, with sufficient financial capacity and management capacity.
With the efforts and determination of Ba Ria-Vung Tau province and the support of the Government and relevant ministries and sectors, the Cai Mep Ha free trade zone is expected to become an attractive investment destination, a modern logistics service and production centre, a new driving force for socio-economic development and ensuring national defence and security in Ba Ria-Vung Tau province and the Southeast region in general.
