The province has submitted its proposal to the Prime Minister to request the Politburo to issue a resolution on the development of Phu Quoc Island as to 2020. For sectoral development planning, focus will be laid on review and amendment of the planning to make it responsive to the master planning approved by the Prime Minister. Also, the province will be entitled to flexible mechanism, which allows adjustment of some architectural criteria during the detailed planning implementation process. This will help fully exploit the advantage on natural and social conditions and properly respond to the actual situation and development needs of Phu Quoc Island.

The province put forward proposal on consideration and allocation of capital investment in essential infrastructure on Phu Quoc Island from now to 2015. In the immediate time, it is recommended to arrange an additional amount of VND4,500 billion from government bonds to build routes around the Island in the west, the main South-North road and Nguyen Trung Truc road.

From the central budget fund, the province proposed to take VND2,500 billion, accounting for 50 percent of total investment capital, to build branch roads linking the main road to roads around the Island or connecting with key tourist sites and urban residential areas. The total investment capital for resettlement areas from now to 2015 will be around VND1,600 billion in which revenues from resettlement land use account for 60 percent, with the remaining of 40 percent being used to offset the investment cost.

The province recommended that Prime Minister direct the acceleration of procedures for implementation of the project such as entertainment, casino business and hotel complex, international sports centers, race tracks, issue a decision on establishment of Phu Quoc coastal economic zone, direct and facilitate the amendment, supplementation of investment preferential policies on tax, house, residential land and other financial issues.

Specifically, all business establishments on Phu Quoc Island are entitled to corporate income tax rate of 10 percent (or 15 percent) over 20 years for new projects and expansion investment. For business establishments operating in areas that are encouraged to call for investment shall be entitled to incentives on business areas as well. There will be a reduction of 50 percent of personal income tax for all the households having income from doing business and individuals having wages and salaries earned on Phu Quoc Island. Policy on exemption and reduction of land lease will be applied to businesses that change their land use purpose.

The province also recommended that Vietnamese overseas be allowed to buy house and get entitled to land use right on Phu Quoc Island with the regulated lots. Foreigners living in Vietnam and foreign investors are also allowed to buy house and rent residential land for a long time on Phu Quoc Island.

According to the master plan for Phu Quoc Island to 2030 approved by Prime Minister, focus will be laid on the sustainable development, harmony between economic development and historical, cultural preservation and environmental protection and regional and national defense and security. It is intended to gradually turn Phu Quoc into a sea-island city, a luxurious tourist center with high-quality services and science and technology center of Southeast Asia.

The Vietnam Chamber of Commerce and Industry / StoxPlus - November 14, 2012