In an interview with Lao Dong on the occasion of the New Year - 2025, Mr. Vu Quang Hung, Member of the Standing Committee of the Da Nang City Party Committee, Head of the Management Board of the Da Nang High-Tech Park and Industrial Parks, said that the city is ready to build a Free Trade Zone.
Sir, could you please give a general description of the "shape" of the Da Nang Free Trade Zone (FTAZ) that will be under construction in early 2025?
Mr. Vu Quang Hung: Da Nang IZ will include 4 main functional areas: production, logistics, trade - services, digital economy and information technology - innovation. The functional areas are arranged in many locations suitable for the city's current land fund, which have been carefully surveyed for location, land clearance capacity, development potential and suitability with industry orientation. The total expected natural area of the IZ is about 2,348 hectares.
Regarding authority, the Prime Minister decides to establish and adjust the boundaries of the KTMTD. The City People's Committee approves the investment policy for the project to build infrastructure for functional areas. The Management Board of the Da Nang High-Tech Park and Industrial Zones will directly manage the KTMTD.
The objective of the KTMTD is to create a favorable and attractive business environment, attracting investment, especially leading foreign investors in priority economic sectors. At the same time, this will be a place to pilot mechanisms and policies to attract investment, finance, trade, tourism, high-quality services, becoming an attractive location for logistics, production, trade, modern services, creating an open and integrated business environment.
The establishment of the KTMTD will attract strategic investors for high value-added industries, promote economic development, create job opportunities and enhance Da Nang's role in the international arena.
There have been favorable policies from the Central Government and the National Assembly. However, this is a new model for Vietnam and Da Nang. So what difficulties and challenges will Da Nang face when implementing it?
KTMTD is a new economic model, the development of legal, mechanism and policy will be difficult because there is no precedent. Policies on tax, customs, import, export, labor management and investment need to be detailed and transparent. Close coordination between ministries, branches and customs and tax agencies is needed to synchronize regulations.
Regarding logistics infrastructure, it is not yet synchronized, although Da Nang has a seaport and an international airport. Therefore, it is necessary to invest in Lien Chieu port, roads, railways, dry ports, modern warehouses, and professional logistics services. KTMTD needs to develop synchronously with industrial parks and high-tech parks, requiring a long-term infrastructure development strategy.
Attracting domestic and foreign investors will be a challenge, as the KTMTD is a pilot model. Investors need to commit to stable, transparent policies and competitive incentives. Therefore, Da Nang also needs to create a strong domestic consumption market and effectively connect with the international market.
In particular, the control of economic activities, prevention of tax fraud and smuggling will be difficult. It is necessary to build an effective management system to ensure compliance with the law. Da Nang also needs a team of highly specialized human resources in economics, customs management, logistics and related fields.
The Management Board of Da Nang High-Tech Park and Industrial Zones is assigned to implement a “one-stop shop” for administrative procedures such as granting investment, business, planning, construction licenses, etc. However, this is also an unprecedented model. Could you please tell us more about the specific implementation plan?
Mr. Vu Quang Hung: Assigning the Management Board to implement the "one-stop" model is an important step to improve management efficiency, shorten time and minimize procedures for businesses.
The Management Board will establish a "one-stop" center/department for receiving and processing documents at KTMTD, where businesses can carry out all related procedures without going through many management agencies.
Develop a simple and fast application processing procedure. Shorten the licensing time, especially for investment projects in the semiconductor and high-tech industries, by shifting from "pre-inspection" to "post-inspection", expected to shorten the project implementation time by about 260 days, and issue investment registration certificates in 15 days. Prioritize quick approval procedures for priority industries.
Integrating information technology to process electronic records, making it easy and transparent to submit and track records. Businesses can submit and track records online. Providing online public services, helping businesses carry out procedures without having to go directly to government agencies.
Provide professional training for staff. Equip skills to handle documents, resolve problems quickly, especially complex issues, ensuring no difficulties for businesses. Create a coordination mechanism between state agencies to resolve procedures quickly and effectively, minimizing delays.
The Management Board will also conduct periodic assessments of processes and service quality, identify weaknesses for improvement, and listen to feedback from businesses.
Free Trade Zones around the world have in common that they all apply many investment incentive policies to attract FDI. The Da Nang Free Trade Zone in Vietnam was established late, so what advantages do we have to "compete" and attract investors? On the other hand, the available land and premises in Da Nang are not much - so how will the model and plan to build the Da Nang Free Trade Zone overcome this?
Mr. Vu Quang Hung: The preferential policies include: Exemption or reduction of corporate income tax, import tax, VAT for enterprises in the KTTMTD, especially in the processing, high-tech, and export service industries.
Regarding simple administrative procedures. Applying the "one-stop" model, providing investment support services such as legal advice, human resource training, solving problems related to labor, finance and environment. Preferential policies for high technology, information technology, innovation. Protecting investors' rights in terms of legal stability, protecting legitimate rights.
In terms of land, Da Nang develops the industrial park in a complex model due to limited land area. Functional areas (logistics, production/processing, trade - services) are arranged in different locations, taking advantage of each location and available infrastructure. However, there must be a plan to connect the functional areas and control activities between inside and outside.
Da Nang also proposed to study the sea encroachment plan to create land fund for developing industrial parks associated with logistics, solving the land shortage and promoting economic development.
The final question is how do local people and businesses benefit from the construction and development of the Free Trade Zone in Da Nang?
Mr. Vu Quang Hung: New occupations and jobs in the KTMTD will create job opportunities from production, operations to senior management. Enterprises need skilled workers, creating opportunities for vocational training programs, improving skills for local workers. It is the jobs and development of trade and services that will increase workers' income and increase consumer demand.
KTMTD will contribute to the development of Da Nang’s economy, especially in the fields of export, processing industry, finance and services. Local businesses will have the opportunity to cooperate with international businesses, providing raw materials, logistics services, transportation and supporting production. Local businesses can access international markets, expand markets and export thanks to tariff incentives.
Promote the development of supporting industries. Create opportunities for local businesses to join the global supply chain. The construction and development of the KTMTD is accompanied by upgrading transport infrastructure, seaports, airports, electricity, water, telecommunications systems, improving the quality of life for people. The KTMTD will also create demand for housing, healthcare, education, entertainment... That will create many opportunities for local businesses to participate in service sectors and improve the quality of life of the community.
Develop high-tech industries, financial services, logistics. Create opportunities for cooperation with international partners. Support small and medium enterprises (SMEs). SMEs can participate in supply chains and projects in the KTMTD through development support programs.
KTMTD is a bridge between Da Nang and the international market, enhancing trade, cooperation and connection. International fairs, exhibitions and business events will bring opportunities for businesses to expand their markets and access new technologies. Da Nang can take advantage of KTMTD to create a favorable business environment, promoting sustainable economic development.
Thank you!
(Article from the Central Highlands - Central Spring Labor publication 2025)
