Becoming an important link in the global supply chain
Cat Lai Port is not only the largest and most modern seaport in Vietnam, but is also in the top 30 seaports with the largest output in the world. With an average of 10% growth in import-export containers per year, this port accounts for about 86% of the import-export container market share through Ho Chi Minh City seaports and 34% of the country's total output.
Ho Chi Minh City also has a Hiep Phuoc port system, owning a large land fund, convenient for developing modern logistics. With these conditions, building a tax-free port in Ho Chi Minh City is not only feasible, but can also create a significant competitive advantage, making the city a cargo transit center in Southeast Asia.
According to Dr. Tran Quang Thang - Director of the Ho Chi Minh City Institute of Economics and Management, the duty-free port is a special area in seaports, where goods can be stored, processed, processed or re-exported without being subject to import tax or value added tax (VAT). This helps businesses significantly reduce warehouse, transportation and customs procedures costs, while increasing flexibility in the supply chain.
This model not only helps support import and export, but also plays an important role in attracting multinational corporations to invest and establish logistics centers in Vietnam. When the Tax-Exempt Port is effectively operated, Ho Chi Minh City can become an important link in the global supply chain, similar to the way Singapore or Dubai are doing.
According to Mr. Tran Quang Thang, to successfully implement the Tax Exemption Port, Ho Chi Minh City needs to focus on three key factors. First of all, upgrading logistics infrastructure is a prerequisite, including synchronous investment in connecting transportation systems, high-standard warehouses, modern management technology and especially smart electronic customs to shorten procedures time.
Clear incentive policies also play an important role, requiring the city to build flexible tariff mechanisms and open administrative procedures to attract large enterprises.
More importantly, Ho Chi Minh City needs to strengthen connections with the global supply chain, turning duty-free ports into regional cargo transit centers, helping goods from Vietnam to major markets such as the US, EU, and China faster and more effectively.
Need to build a suitable management mechanism
Ho Chi Minh City is aiming to develop a free trade zone (FTZ) in Can Gio district, associated with Can Gio international transit port - a project with an investment capital of about 4.8 billion USD. According to the Ho Chi Minh City Planning for the period 2021-2030, with a vision to 2050, this FTZ area will have a scale of 1,000-2,000 hectares, expected to become a new driving force for the marine economy and logistics.
Dr. Truong Minh Huy Vu - Director of the Ho Chi Minh City Institute for Development Studies - said that if Ho Chi Minh City implements the FTZ model associated with Can Gio transit port, the city will not only develop cargo transportation services but can also attract production, trade, finance and technology, increase economic value, create sustainable growth momentum.
FTZ Can Gio will help expand trade and connect goods between Ho Chi Minh City and Dong Nai, Long An, Tien Giang, creating a strategic logistics corridor for the entire Southern region. Enterprises investing here will enjoy preferential import-export tax, convenient customs clearance procedures and greater access to international markets. This model has been successfully applied in many countries such as China, Indonesia, the Philippines, Malaysia, becoming an important driving force to promote the marine economy and logistics services.
However, according to the Ho Chi Minh City People's Committee, Vietnam currently does not have any truly complete FTZ. Although the law has mentioned this concept in Decision 100/2009/QD-TTg and Decree 35/2022/ND-CP, the implementation is still mainly at the level of important non-tax zones in border gate economic zones.
Currently, only Da Nang is allowed to pilot the first FTZ with three functional areas: Trade - services, logistics center and production area. This poses a problem for Ho Chi Minh City in building a suitable management mechanism, ensuring the feasibility of FTZ Can Gio.
