Free trade zone to be established in Danang

Permanent Deputy Prime Minister Nguyen Hoa Binh signed Decision No.1142/QD-TTg on the establishment of Danang FTZ, as reported by local media on June 16.

Danang FTZ, the first of its kind in Vietnam, will be developed across seven non-contiguous locations, featuring functional areas for manufacturing, logistics, trade, digital technology, and innovation, alongside other functional areas as regulated by law.

The first and second locations cover an area of about 100ha and 17ha, respectively, in Hoa Hiep Bac ward, Lien Chieu district. The third location has an area of 500ha in Hoa Hiep Bac ward, Lien Chieu district, and Hoa Lien commune, Hoa Vang district.

The fourth location spans across an area of 559ha in Hoa Ninh commune, Hoa Vang district, while the fifth location covers a 90-ha area in Hoa Ninh commune, Hoa Vang district.

The sixth location, with about 154ha, is situated in Hoa Nho and Hoa Ninh communes, Hoa Vang district. The seventh location is designated with 401ha in Hoa Nhon and Hoa Phu communes, Hoa Vang district.

The FTZ is being envisioned as an important link in the global supply chain, associated with Lien Chieu Port, Danang International Airport, and the East–West Economic Corridor. The initiative is expected to boost high-tech industries, innovation, digital transformation, and sustainable economic restructuring following the merger with Quang Nam province.

The zone is associated with the international finance centre, forming a modern, smart, and highly competitive economic ecosystem, which contributes to elevating Vietnam's status regionally and internationally.

The manufacturing-logistics area will become a modern hub integrating digital infrastructure. Priority is being given to green and advanced technologies, renewable energy, aviation, multimodal logistics, automation, and international supply chain connection.

The trade and services area will become an international-standard space, including duty-free business, resorts, e-commerce, education, healthcare, sports, and entertainment, serving the knowledge economy and regional trade.

The digital technology and innovation area will develop a high-tech centre, focusing on AI, semiconductors, big data, cloud computing, and the Internet of Things. A startup ecosystem will be formed with support services such as finance, legal, training, accommodation, and entertainment.

Danang is set to become the first locality nationwide to embrace a free trade zone model, which will create an impetus to bring coastal city development to new heights.

While free trade zones are expected to be a new driving force for Vietnam’s logistics industry to grow, short term barriers remain challenging.

A free trade zone (FTZ) is an economic area where goods can be imported, stored, processed, and re-exported without being subject to import duties or other non-tariff barriers. FTZs play an important role in promoting international trade, especially the logistics industry – a sector that plays a core role in connecting the global supply chain.