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Foreign direct investment, largely in manufacturing, has been
key to Vietnam's growth. It hit a record of $15.8 billion last
year and has risen 6 percent in the first five months of 2017
from a year earlier.
The new economic zones will be in the north, center and south of
the 1,650-km (1,000 mile) long country, Planning and Investment
Minister Nguyen Chi Dung told Reuters in an interview on
Tuesday.
The ministry is drafting a law for the zones in northern Quang
Ninh province, central Khanh Hoa province and southern Phu Quoc
province. Approval from lawmakers in the communist state is
expected by the end of 2017.
Dung said the zones would be free from local regulations to make
them competitive internationally.
"It will be a massive attraction to investment and investment
will boom next year," Dung said. "It will be outstanding in
everything: free and favourable in every aspect."
BROADLY POSITIVE INVESTORS
Vietnam currently has 18 economic zones, offering incentives for
investors from free tariffs in selected items to lower personal
income tax or reduced rent and fees. There are another 325
state-supported industrial parks, which have fewer incentives.
A survey by ANZ Research last year said investors were broadly
positive about the industrial parks because of tax incentives
and the ease of customs clearance. Occupancy in operating
industrial parks is more than 70 percent.
Vietnam's government this week reiterated its annual economic
growth target at 6.7 percent, despite a drop to a three-year low
of 5.1 percent in the first quarter. The government blamed the
low rate on drought, salination issues and a temporary drop in
production for Samsung Electronics <005930.KS> due to its Note 7
battery woes.
Dung said the government was confident of meeting its 2017
growth target given factors including improved weather, solid
loan growth, a rise in tourism and rising numbers of new
businesses.
He expected Vietnam to continue drawing at least $10 billion a
year in foreign direct investment for each of the next five
years, while adding it was becoming more selective in the kind
of investment sought. High tech and clean sectors are now a
greater priority than low-cost industries, he said.
"It's no longer about quantity but more about quality," Dung
said.
(Writing by Mai Nguyen; Editing by Richard Borsuk)
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