The Ministry of Planning and Investment has sent a document to the Government Office expressing its disagreement on a Taiwanese company’s proposal to establish Vung Ang special steel economic zone.
Taiwanese Hung Nghiep Formosa Ha Tinh Steel Limited Company, a subsidiary of Formosa Group, earlier has submitted several proposals to Deputy Prime Minister Hoang Trung Hai, concerning to Vung Ang special zone's establishment.
The zone is aimed to build the Son Duong deep seaport and invest in related industries of steel and electricity to boost industrial development, said the company.
It also put forward draft regulations on management of the special economic zone. Accordingly, the zone should be enabled to apply particular incentives like tariff exemption for materials of Formosa still mill project, tax free for loans from foreign credit institutions, and tugboat trading.
Besides, the company has proposed the Government to protect steel industry and set up a board under the Government's management for the zone to manage the special economic zone.
"It is unprecedented and unnecessary because Vung Ang Economic Zone Management Board is running well, and becomes a state organ with jurisdiction to solve issues related to implementation of the Formosa project", said Ministry of Planning & Investment.
The Formosa steel mill project is enjoying highest incentives, including tariff exemption on import machines and materials, in accordance with investment, taxation and land laws, according to Ministry.
Protection of the steel industry and tugboat trading are considering by authorized agencies, the ministry said.
The Ministry proposed the Prime Minister to allow establishment of a central interdepartmental group which will assist the company to carry out the project.
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