Vietnam Airports Corporation (ACV) sent the Ministry of Finance and the Ministry of Construction a proposal to establish an integrated aviation logistics center with a duty-free zone at Long Thanh International Airport, Dong Nai Province.
The submission clearly stated that the logistics center is expected to be located in the southwest area of Long Thanh International Airport (HKQT), on an area of 136 hectares; within the total area of 5,000 hectares that has been planned and cleared since 2011 with the function of aviation logistics.
ACV proposed to play the role of investor, developing synchronous and modern infrastructure, while building appropriate mechanisms and policies. This model also encourages the participation of investment linkages from airlines and enterprises in many fields.
According to the plan, the aviation logistics center will consist of two components: hardware and software. In which, hardware is the infrastructure and modern logistics works; and software is the duty-free zone with breakthrough policies on taxes and customs.
This combination is considered by ACV to be a key factor to turn Long Thanh into a cargo transit center of Southeast Asia (ASEAN).
In the first phase, the center will apply a tax and customs control mechanism according to Vietnamese law, creating a foundation for gradually developing into an international free trade zone when approved by competent authorities.
This will be Vietnam's only aviation logistics center associated with the duty free zone and directly connected to Long Thanh airport, providing the advantage of a "national gateway" to participate in the Asian logistics network, connecting major economic corridors such as ASEAN and APEC.
ACV forecasts that this center will contribute about 0.7% of the GDP of the Southeast region and 1-2% of the country's export turnover each year, mainly from import-export, logistics, e-commerce and supporting industries. At the same time, it is expected that this center will help import-export turnover by air increase by 15 - 20% per year and create 15,000 jobs (6,000 directly and 9,000 indirectly).
The model of combining logistics and non-taxable zones, along with preferential tax and customs policies, is expected to attract large corporations in the fields of electronics, pharmaceuticals, e-commerce, logistics and refrigerated goods. Attracting foreign direct investors (FDI) plays a key role in making the center a leading logistics area, leading to the development of the supporting, logistics, packaging and trade business ecosystem.
According to ACV, international experience shows that the non-tax zone model is an essential factor in the modern supply chain, helping to store, process and reissue goods without being subject to normal tax obligations, bringing clear competitive advantages. Changi International Airport (Singapore) and Incheon International Airport (Korea) are typical examples.
Changi has developed an air logistics center integrated with a free trade zone since 1981, allowing exemption of import and VAT on stored, transit or re-exported goods, becoming one of the 10 largest cargo airports in the world. Similarly, Incheon with a free trade zone connected to airports and deep-water seaports has become a leading integrated aviation logistics center in Asia.
International successes have just affirmed that the combination of aviation logistics and non-taxable zones not only improves national competitiveness but is also a "magnet" to attract international investment, promote e-commerce and value-added services.
