Pacific

Tonga considers Special Economic Zone

09:50 am on 7 November 2014

The Tonga government is considering creating a Special Economic Zone in the country.

The government has signed a memorandum of understanding with investors from China, Hong Kong and New Zealand to carry out a feasibility study on setting up a Special Economic Zone.

Radio Tonga reports the zone would promote economic development, especially in the tourism, agricultural and fishery sectors - the key arms of the country's economy.

Typically zones reduce taxes and lift other restrictions to encourage foreign investment.

The Minister of Commerce, Tourism and Labour, Viliami Latu, says the project could be worth hundreds of millions of dollars, but he has not said what benefits might be offered to foreign companies within the zone.