Free Trade Zone - Da Nang will be different
Vietnam is actively integrating into the international economy, so the establishment of a Free Trade Zone is considered an important strategic step. Da Nang - one of the most dynamic cities in Vietnam, with a favorable geographical location and strong economic development potential, so it is understandable that it was chosen to implement the free trade zone model in early 2025. According to the plan, the Da Nang Free Trade Zone will be a special economic zone located within the national territory but operating under its own mechanism, designed to attract foreign direct investment (FDI), promote import and export and enhance international integration.
The Da Nang free trade zone can be described in general as follows: The initial scale will be about 10km², equivalent to some small-scale but highly effective free trade zones in the world, such as some free trade zones in Singapore. This area will be divided into 3 main functional areas: Production area, port logistics area and trade - service area. The first phase will focus on infrastructure development, prioritizing attracting strategic investors, especially in the fields of logistics and high technology. The initial model will be an area with hard boundaries, without permanent residents, to ensure effective management and optimize preferential policies. However, in the future, Da Nang plans to expand and soften the boundaries, towards an integrated business urban model, closely connected with neighboring areas. The development roadmap is divided into 2 phases: Phase 1 (2025-2030) focuses on completing the port logistics infrastructure (80ha), phase 1 on the commercial service area (about 50ha) and the production area (about 250ha); phase 2 (from 2030) expands the scale of functional areas to a total area of about 582ha.
Many challenges but more opportunities for development
Despite strong support from the Central Government and the National Assembly, the construction of a free trade zone in Da Nang still faces many challenges. Because this is a new model in Vietnam, it requires careful preparation in terms of law, policy and management. The free trade zone is a golden opportunity for Da Nang to develop dramatically, but Da Nang must prepare carefully, manage effectively and have the active participation of both the government and the people.
One of the biggest challenges is the development and implementation of a “one-stop shop” mechanism in handling administrative procedures. The Management Board of Da Nang High-Tech Park and Industrial Zones was assigned this task, but according to the Head of the Management Board - Mr. Vu Quang Hung, this is an unprecedented model. To be successful, there needs to be close coordination between functional agencies, maximum simplification of procedures, application of information technology and building a team of competent, professional staff with a deep understanding of the laws and operations of free trade zones. The specific implementation plan needs to include the development of an electronic information system, staff training, clear and transparent working procedures and a strict monitoring mechanism.
The design of investment incentive policies needs to be attractive to compete with other free trade zones in the world. Da Nang must develop superior policies, not only focusing on tax and land incentives but also aiming to create a favorable investment environment, modern infrastructure, high-quality human resources and comprehensive business support services. It is very important to make the most of the advantages of geographical location, seaports and modern transportation systems. In addition, solving the problem of limited land funds is a challenge that needs to be solved by optimizing land use, attracting investment in projects with high construction density and efficiency.
Secretary of the Da Nang City Party Committee Nguyen Van Quang has repeatedly stated at forums meeting voters, City Party Committee conferences... that the construction and development of a free trade zone in Da Nang will bring many benefits to local people and businesses. First, it will attract foreign investment, create more jobs, promote economic growth and increase people's income. The free trade zone will promote the development of modern, high-tech industries, create conditions for local businesses to access advanced technology and improve competitiveness. The free trade zone will contribute to diversifying the economy, reducing dependence on traditional industries, creating a driving force for sustainable development for the city.
However, according to Mr. Quang, to ensure the sustainable development of the free trade zone, it is necessary to focus on environmental protection, developing high-quality human resources, and at the same time ensuring harmony between economic development and the interests of the local community.
(Posted on the special edition of Lao Dong Xuan At Ty)
