Trade Offices share international experience in establishing Da Nang free trade zone

On October 31st, the Trade Promotion Department ( Ministry of Industry and Trade ) chaired the October 2024 Trade Promotion Conference with the theme "Discussion on the Project to Establish a Free Trade Zone in Da Nang: The Role of Vietnamese Trade Offices Abroad".

At the conference, leaders from the Trade Promotion Department, the Import-Export Department, along with leaders from Da Nang city, businesses, associations, and trade offices, exchanged and discussed specific solutions and tasks to promote the development of the logistics industry; orientation for building the Da Nang Free Trade Zone according to Resolution 136/2024/QH15 of the National Assembly on the organization of urban government and piloting some specific mechanisms and policies for the development of Da Nang city.

The conference discussed solutions to help Da Nang establish a free trade zone soon. (Photo: Phuong Cuc)

Simultaneously, many Vietnamese trade representatives abroad also exchanged information, focusing on international experiences to contribute to the development and refinement of the project for building and operating a free trade zone with Da Nang city.

Mr. Truong Xuan Trung, First Secretary in charge of the Vietnamese Trade Office in the United Arab Emirates (UAE), explained two reasons why the UAE is focusing on developing free trade zones. Firstly, the UAE is shifting its economic goals, moving away from oil-based economies and towards a green, clean, digital, and service-based economy. Therefore, trade volume plays a crucial role and is one of the pillars driving the UAE's economic development. Secondly, in 2023, the UAE established a Ministry of Investment to attract foreign investors.

Drawing on the strengths of the UAE's free trade zone, Mr. Trung offered several suggestions for Da Nang to learn from and develop a comprehensive plan, such as expediting the licensing process, improving infrastructure, securing land, and implementing appropriate policies.

Vietnamese trade representatives abroad participated in the conference online. (Photo: Phuong Cuc)

Sharing Canada's experience in developing free trade zones, Ms. Tran Thu Quynh – Commercial Counsellor in Canada – stated: “ Over the past few years, the Canadian government has strived to position Canada as an attractive destination for foreign investment. To achieve this goal, tariffs have been essentially eliminated on all production inputs, including machinery, equipment, and other inputs used in industrial manufacturing. This initiative has made Canada the first country in the G20 to create a tariff-free zone for industrial manufacturers. Furthermore, because this is a nationwide initiative, the federal government has promoted the elimination of tariffs and essentially transformed Canada into a major foreign trade area for companies importing production inputs .”

According to Bui Trung Thuong, Vietnam's trade attaché in India, drawing on India's experience, Da Nang needs to strengthen its connections with markets and attract international visitors to Da Nang, Vietnam.

“ To develop, we need new, attractive industries, green transformation, digital transformation, and circular economy. A smart city needs a global financial, insurance, and logistics center. This is a good opportunity. Da Nang should carefully study the models of other countries, increase regional linkages, and strengthen connections with partners. When learning from the experiences of other countries, we should study them thoroughly to implement a sustainable development plan ,” Mr. Thuong emphasized.

At the same time, Da Nang, being a latecomer, needs to carefully study the development of its industries. Currently, proposals suggest developing tourism, the digital economy, and information technology, but the Trade Office suggests adding healthcare; trade should be linked to manufacturing and logistics; there should be preferential mechanisms and good preparation in terms of human resources, regional linkages, and close ties with businesses.

Mr. Le Phu Cuong, Commercial Counselor of Vietnam in Malaysia, suggested that Da Nang should leverage its strengths to attract investment in high technology, semiconductors, logistics, deep-water ports, and tourist ports. Da Nang should also take advantage of its latecomer status to develop a green economy and digital economy, focusing on building and improving the quality of human resources in businesses and free trade zones.

According to the Da Nang City Department of Industry and Trade, upon completion of infrastructure and synchronization of functional zones, the Da Nang Free Trade Zone will cover approximately 2,000 hectares, with a roadmap aligned with the needs of attracting production and business activities in its various functional sub-zones.

It is projected that by 2030, the total area of ​​functional zones put into use will be approximately 300-500 hectares. By 2035, the total area of ​​functional zones put into use will be approximately 1,000 hectares.

It is expected that in December 2024, the Da Nang City People's Committee will complete the drafting of the project proposal and documents for the establishment of the Da Nang Free Trade Zone, and submit them to the Ministry of Planning and Investment for appraisal before presenting them to the Prime Minister for the issuance of a Decision on its establishment.

Source: https://congthuong.vn/cac-thuong-vu-chia-se-kinh-nghiem-quoc-te-doi-voi-viec-thanh-lap-khu-thuong-mai-tu-do-da-nang-356034.html