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Special Economic Zone - How should the management model be?

09:43 | 11/11/2017

VCN- In relation to the special economic zone model, during the drafting of the Law on Special Administrative-Economic Units for submission to the National Assembly at its Fourth National Assembly Session XIV, the Drafting Board submitted 2 options: Special economic zone with its own Chief or governmental authorities, including the People's Council and the People's Committee. 

special economic zone how should the management model be
Conditional business in the special economic zones has reduced to 108 industries, compared with 234 industries currently applied throughout the country. In the photo: Cai Rong port-economic centre of Van Don, Cai Rong town, Van Don district, Quang Ninh province. Source: Internet.

The question is which mechanism is suitable for the SEZ model and whether the SEZ should be subordinated to the central or subnational boundaries of the current draft law?

Can Chief of SEZ abuse its power?

After many comments about the local administration's model of special economic zones, the head of the special economic-administrative unit may cause the abuse of power by giving too much power to the head of a special zone, the draft Law on Special Administrative-Economic Units has absorbed and added option 2 on the model of special administration. However, this issue is still receiving many different opinions from experts, scientists.

At present, the draft Law on Special Administrative-Economic Units is proposing two options. Under option 1, the local administration of the administrative-economic unit, especially the head of the special administrative-economic unit (without the People's Council and People's Committee), together with its specialized agencies and the Chief Administrative Officer. According to this plan, the Head of the Special Administrative-Economic Unit has 126 tasks and powers in many fields such as organizing and ensuring the implementation of the Constitution and the law; government building; economic field; business investment etc., This solution is considered to create breakthroughs in administrative institutions and local government organizations, apparatus and personnel streamlined, effective and effective; clarify and promote the role and responsibility of the head; Ensure the supervision of relevant stakeholders; in line with special requirements on socio-economic development of the special economic zone. Option 2 will be a local level government organization consisting of the People's Council and People's Committee at the special administrative-economic unit; organizing the administrative areas in the Special Economic Zone ... This plan does not cause much disturbance with the current organization of local government in our country but limited is not made a breakthrough and particularly, the apparatus and personnel have not yet been streamlined, they still work under the collective regime and complicated procedures are incompatible with the special nature of special economic zones.

A representative from the Ministry of Planning and Investment said that the Government has prioritized option 1. However, this plan, as noted, has the limitation that it is not a local government level comprising the People's Council and the People's Committee. It can lead to abuse of power without strict supervision.

Commenting on the concerns about abuse of power, Mr. Nguyen Van Phuc, former deputy chairman of the National Assembly's Economic Committee, said at a recent press conference, the special zones model is built in a different direction than the Law on Local Government Organization 2015, but it is not contrary to the spirit of the Constitution 2013. The head of the special economic administrative unit defined in the Draft Law should be understood as one regime rather than only an individual, but also the Head of the Special Economic Administrative Unit, which also has an assisting apparatus, a specialized agency as well as a watchdog. Therefore, when formally regulated, there must be a series of "fences" built up that can not be blamed if the problem arises. Power control, in this case, has many channels, namely the Provincial People's Council and People's Committee, and the Prime Minister. According to Mr. Phuc, the problem more dangerous than the fear of abuse of power of the individual is the abuse of power under the cover of the collective, which can not be attributed to the responsibility of the head.

Be brave to change

Expressing views on the model of special government, economist, Professor. Dang Hung Vo said that the urban government of the special economic zone must be a one-tier urban government (no intermediate levels such as the district level) and preferably centrally.

The explanation for this, according to expert Dang Hung Vo, a model of local government of Vietnam has been organized according to the model of Eastern European countries and the past has shown the cumbersome, ineffective. Therefore, if you need to change, first try to change in just three special economic zones. Foreign investors, as the investment, see more and more government authorities attached to the more afraid, fear.

"I support the model of government organization under Option 1 but there are adjustments. Specifically, the local administration of the administrative-economic unit, especially the head of the special administrative-economic unit, but now the special economic zones in the provinces should be adjusted directly under the Center. Be brave to change this", said specialist Dang Hung Vo.

Also according to Prof. Dang Hung Vo, a one-tiered metropolitan government, will manage it one by one and information technology will allow it to do so if we decide it's a technology-based urban. "The way of building the law of Vietnam, in general, has not escaped the disadvantage is to open a lot of things, but when the opening is too much, then suspend, using other mechanisms such as defence - security to limit. We need a breakthrough in development, but now I feel that the law of the SEZ is being written: "in the middle of the road". We should not go in the direction of opening and closing again like that", Mr. Vo said.

Regarding this issue, there have been concerns about the impact of this model on the whole country. Previously, at the workshop on the model of organization and operation of local authorities in the special economic zone held by the Ministry of Planning and Investment, Prof. Dr. Nguyen Dang Dung of the Hanoi National University wonders that if the special economic zones are subordinated to the provincial level, 63 provinces and cities would like to have a special zone, which would lead to the situation of lord over the region on each province with own economy and cause the status of the provinces compete for each other. Proof of a long time localities racing to propose airport, seaport, Prof. Nguyen Dang Dung warned that the special zones will receive incentives may also lead to any locality proposed to establish a special zone.

By Hoài Anh/ Huu Tuc