On the afternoon of February 28, Task Force 626 worked with CT Strategies LLC (USA) to research and discuss the direction of establishing free trade zones, and operational mechanisms in the cross-border economic zone of Lao Bao-Densavanh between Viet Nam and Lao PDR. Mr. Ha Sy Dong, Deputy Chairman of the Provincial People’s Committee and Head of Task Force 626, and Mr. Ho Dai Nam, Head of the Provincial Party Committee’s Propaganda and Education Board and Deputy Head of Task Force 626, attended the meeting.
According to CT Strategies LLC’s proposal, the company will evaluate the economic and social characteristics of Quang Tri province, study the current situation of policies and regulations related to import-export activities and operations of free trade zone, taking into account the free trade agreements (FTA) that have been signed, are effective, and the commitments to tax and origin of goods. Analyze the necessity of establishing and investing in free trade zone in Quang Tri province and propose a preliminary business model and operation.
Based on these assessments and analyses, the company will provide a final report summarizing all the research and data from the above activities. This report includes an analysis of suitable free trade zone models, an overview of advantages and challenges based on current local conditions, a preliminary assessment of the impact of free trade zone on Quang Tri province development, and a proposal for a legal framework and operation model.
The financial analyses will be evaluated to propose whether investing in the FTZ of the province is feasible or not. If it is determined that the FTZ are necessary and proposed for implementation, the company will provide further advice on planning and implementing the FTZ, including estimated time and costs for in-depth research, planning, and implementing the FTZ in Quang Tri province.
In conclusion, Ha Sy Dong, Deputy Chairman of the Provincial People’s Committee, emphasized that the province is eager to form the Lao Bao-Densavanh cross-border economic zone. This is a pilot economic zone that is expected to be operational around July 2024.
However, this is a new and difficult issue in choosing a pilot implementation method that is appropriate to the legal regulations.
With extensive experience in border management consulting, trade facilitation, development and management of FTZ, CT Strategies LLC is expected to help Quang Tri province in Vietnam and Savannakhet province in Laos successfully develop the Lao Bao-Densavanh cross-border economic zone model, and expand it to other locations.
At the same time, the company is expected to provide additional financial resources by calling for other legitimate support sources to effectively and promptly carry out the assigned tasks.
On this occasion, Ha Sy Dong, Deputy Chairman of the Provincial People’s Committee, and Andrew Farrelly, CEO of CT Strategies LLC, signed a Memorandum of Understanding (MoU).
This memorandum agrees on consistent objectives and principles for the participating parties to coordinate and advise on the preparation of a research report on establishing free trade zones in the Lao Bao-Densavanh cross-border economic zone, and to be prepared to quickly and conveniently implement related projects.