Shops at duty-free zone asked to close
Shoppers are pictured at a duty-free shop at Moc
Bai border gate economic zone in Tay Ninh. Photo:
Tay Ninh Newspaper
Businesses
operating in the duty-free zone inside the Moc Bai Border Gate Economic Zone
in the southern Tay
Ninh Province
have been asked to temporarily close as their term to sell tax-free goods is
over as of January 1.
The
suspension was made under the government directive No.93, which stipulates
that the duty-free zone is only operational between 2007 and 2012, and the
businesses now have to wait for new policies from the government, Phan Minh
Thanh, deputy head of the management board of the economic zone, told Tay
Ninh newspaper.
The zone management board, which requested the suspension, has called on the
government to extend the deadline to the end of 2018, but has yet to receive
any response, Thanh added.
“We are not sure if the duty-free shops can resume operation,” he told Tuoi
Tre.
Moc Bai economic zone, 70km from Ho Chi Minh City
and 170km from Phnom Penh,
has so far attracted 35 investors who have registered a combined capital of
US$526.69 million, according to Tay Ninh newspaper.
Of these, 16 projects have actually been implemented, disbursing some $120
million, and generating jobs for 11,250 people.
However, due to inconsistency in investment policies, Moc Bai has witnessed
declines in both investment quantity and scale.
In 2006, it was home to 70 duty-free businesses, including five supermarkets
and a shopping mall, but there are now less than 30 operational facilities at
the zone, while the number of employees has dropped from 1,800 to 700.
The number of tourists and shoppers to the zone also slumped from more than
3.6 million in 2008 to only 2.3 million in 2011.
Meanwhile, the duty-free shopping companies said the suspension has wrecked
their business as it is now the season of high demand ahead of the Lunar New
Year.
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