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  • Can Gio Free Trade Zone anticipated to boost economic growth for HCMC

Can Gio Free Trade Zone anticipated to boost economic growth for HCMC

Cập nhật: 13/02/2025

The Free Trade Zone in Ho Chi Minh City's Can Gio outlying district is poised to play a pivotal role in  stimulating economic growth not only for the southern largest city but also for the nation.

Promoting economy and tourism

Chairman Pham Huy Binh of the Board of Directors of Saigon Tourist Corporation (Saigontourist Group) highlighted the group's active involvement in this initiative, concentrating on several key areas. These include the research, survey, and development of distinctive tourism offerings that leverage the geographical advantages, natural beauty, and cultural heritage of Can Gio. The group is also focused on promoting eco-tourism, resort tourism, cultural and historical tourism, as well as MICE tourism, which integrates travel with conferences, seminars, and events.

Saigontourist Group is currently managing the Saigon - Can Gio ecotourism area, situated in Long Hoa Commune, adjacent to the emerging Can Gio coastal urban tourism zone. Additionally, the Vam Sat ecotourism area serves as the central hub of the Can Gio World Biosphere Reserve. These two tourism facilities are positioned to "anticipate" the establishment of a free trade zone in Can Gio, which is expected to commence operations once the project is officially launched.

When Can Gio international transit port and new, large-scale, modern ports are put into operation in the future, Saigontourist Group will contribute to increasing revenue for Can Gio and Ho Chi Minh City in the field of cruise tourism.

To attract high-end, high-spending visitors to Ho Chi Minh City, including the Can Gio Free Trade Zone, the company really needs several interesting destinations and attractive entertainment activities. At a recent meeting, the leader of the Ho Chi Minh City Department of Tourism said that it is necessary to build a large-scale duty-free shopping and commercial center right in Can Gio, because in fact this model has been successfully implemented by many countries and territories over the past time.

Furthermore, at the start of the year, Prime Minister Pham Minh Chinh urged Vingroup to carry out studies on development of an underground transportation system linking the center of Ho Chi Minh City to Can Gio. This initiative is expected to enhance traffic flow and stimulate the movement of both domestic and international tourists, particularly those with higher spending potential, to the Can Gio Free Trade Zone.

Tax incentives, special policies

Contributing to the realization of the free trade zone - part of the Ho Chi Minh City planning for the period 2021-2030 with a vision to 2050 approved by the Prime Minister, economic and tourism experts believe that there should be special policies to encourage investment and attract visitors.

Deputy General Director Pham Anh Vu of Viet Tourism Company noted that both Vietnamese and international tourists prefer shopping in locations that offer a variety of amenities and convenient access. Approximately a two-hour flight from Ho Chi Minh City, Singapore has become a favored destination for many shopping enthusiasts seeking branded goods, duty-free purchases, significant discounts, and a range of entertainment options.

International visitors experience shopping in Can Gio outlying district

Economic analysts highlight that Singapore focuses on four key tourism sectors for development including shopping tourism, entertainment and recreation tourism, business tourism, and experiential tourism. All sectors are interconnected and contribute to the development of the smokeless industry, a key driver of economic growth.

Despite its relatively small size, comparable to Phu Quoc Island in Vietnam, this island district is home to highly successful duty-free shopping centers. Furthermore, international visitors to this country exhibit significantly higher average spending levels compared to tourists visiting Vietnam.

Pre-pandemic data reveals a stark contrast in tourist spending: while international visitors to Singapore spent an average of US$1,200 per trip, the average spending of visitors to Vietnam ranged from only $100 to $120.

Free trade zones in Singapore are designated economic zones that have brought favorable customs and tax conditions to businesses operating in them. There are nine free trade zones in Singapore, the most prominent of which are Changi Airport and Jurong Port. Changi Airport Group has an extensive range of services, providing more than 100,000 square meters of combined warehouse and office space, capable of handling approximately 3 million tons of cargo per year.

Similarly, the FTZ model in Dubai has also created a strong driving force, helping the United Arab Emirates (UAE) to develop rapidly. Vietnam can refer to the models of Singapore, Dubai to apply to the Can Gio FTZ.

Recently, some American investors who have invested in Marina Bay Sand Casino and Universal Studio in Singapore have combined with a number of units to research and learn about investment conditions in Disneyland, casino entertainment areas, and factory outlet areas in Ho Chi Minh City.

According to the Ho Chi Minh City Institute for Development Studies, free trade zones are crucial for promoting trade, attracting investment, fostering international economic integration and offering significant socio-economic benefits. This is a relatively new model in Vietnam.

Director Truong Minh Huy Vu of the Ho Chi Minh City Institute for Development Studies emphasized that, based on international practices, a free trade zone (FTZ) is a special economic area created by two or more nations. Upon its establishment, it is essential to implement policies that include tax exemptions and reductions, incentives for corporate income tax, unrestricted market access, and the free movement of goods among member countries, along with other supportive measures.

However, he recommended conducting a thorough review of both domestic and international documents regarding the establishment of FTZs to accurately and comprehensively understand the challenges that Can Gio will encounter in this process.

By Thi Hong – Translated by Anh Quan

SGGP News - en.sggp.org.vn - Feb 11, 2025

Từ khóa: Can Gio, cultural and historical tourism, eco-tourism, HCMC, resort tourism

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