Race to invest in free trade zones

In Vietnam, free trade zones (FTAs) are a new model that is expected to bring breakthroughs to promote rapid and sustainable growth in the economic, trade and logistics sectors. Recently, the Party and the State have paid attention to policy orientations and many localities have prioritized research and investment in FTAs.

The Phuoc An Port and port logistics area (Nhon Trach district) has the potential to develop into a free trade zone (illustrative image).

With dynamic development, localities in the Southeast region such as Ho Chi Minh City, Ba Ria - Vung Tau , Dong Nai, and Binh Duong are gradually implementing measures to build high-tech zones based on their respective advantages.

New development opportunities

According to the Ministry of Industry and Trade 's 2024 Logistics Report, the Free Trade Zone (FTZ) model is familiar worldwide, but still relatively new in Vietnam. Over the past period, Vietnam has gradually approached this model through the development of smaller-scale entities such as export processing zones, duty-free zones within economic zones, bonded warehouses, and duty-free shops.

Experts say this is the stage where Vietnam needs and has the foundation to develop high-tech zones.

According to Mr. Tran Thoang, Director of CT Strategies Vietnam (a subsidiary of CT Strategies, a US-based customs and trade strategy consulting firm), free trade zones promote growth and counteract protectionist trends. This model has proven effective in many countries worldwide in creating new growth drivers, attracting large investments, creating high-quality jobs, transferring technology, developing local supply chains, and boosting exports. Developing free trade zones can also help Vietnam become an attractive destination for investors, aiming to position itself as an important modern trade, finance, innovation, and logistics hub in the Asia- Pacific region.

Similarly, according to Mr. Tran Thanh Hai, Deputy Director of the Import-Export Department (Ministry of Industry and Trade), Vietnam has many advantages for economic development, including logistics services. The Trade Promotion Zone is a new driving force to help localities attract investment, develop production and import-export, and increase the growth of logistics services.

Mr. Hai suggested that localities with seaports, airports, and border gates with large volumes of goods in circulation and import/export should consider establishing trade and export zones and incorporating them into their socio-economic development plans. Developing this model requires a proper assessment of the potential and advantages of each locality to arrive at appropriate proposals.

Da Nang was the first locality to pilot the development of trade and logistics zones, and since then, several other localities have been researching and proposing similar development to contribute to breakthroughs in the logistics sector in particular and the socio-economic development of the localities in general.

Many provinces and cities have been approved to build and develop the Trade and Tourism Zone, therefore it is necessary to finalize the legal frameworks, mechanisms, and specific policies for development, as this is a new model in Vietnam.

Entering the race to build free trade zones.

Currently, provinces and cities in the Southeast region are entering a "race" to develop high-tech industrial zones.

On May 14th, Ba Ria - Vung Tau province held a meeting to gather opinions on the draft research project for a high-tech zone linked to a seaport in the Cai Mep Ha area. The draft project was submitted by the Department of Industry and Trade of Ba Ria - Vung Tau province. The high-tech zone linked to the seaport in the Cai Mep Ha area will be a pilot model integrating innovative policies, competitive incentives, and a favorable investment environment. The overall goal is to develop this area into a rapidly developing, sustainable, and internationally integrated space for the Southeast region, contributing to the accumulation of experience for replication nationwide.

Similarly, Ho Chi Minh City has a free trade zone (FTZ) connected to the Can Gio international transshipment port, with a development model of a "free trade zone within an economic zone or border economic zone." Likewise, Binh Duong province proposed the construction of two free trade zones in Di An city and Bau Bang district, which were approved by the Prime Minister. The An Binh FZ in Di An city has a planned area of ​​100 hectares, connected to the An Binh - Song Than railway line. The Bau Bang FZ will be connected to the railway line passing through the district when conditions permit.

In Dong Nai province, the project to develop a high-tech industrial park is also being urgently implemented. There are six areas that Dong Nai could consider for the construction of such parks in the near future: Bau Can - Tan Hiep Industrial Park; Concentrated Information Technology Park; Innovation and Creativity Park; Logistics Park (Long Thanh district); Xuan Que - Song Nhan Industrial Park (Cam My district); Phuoc An Port and Port Logistics Area (Nhon Trach district).

Not only the government but also investors and businesses are very interested. On May 15th, the Chairman of the Provincial People's Committee, Vo Tan Duc, and representatives from various departments and agencies worked with Lien Thai Binh Duong Import-Export Co., Ltd. regarding investment in the Long Thanh Airport Trade Center. After reviewing the situation, Dong Nai proposed several land plots adjacent to Long Thanh Airport for the company to explore and research investment opportunities. The Chairman of the Provincial People's Committee directed the relevant departments and agencies to coordinate with the enterprise to review related issues, creating a favorable basis for investment and early operation to fully exploit the advantages of the airport.

Van Gia

Source: https://baodongnai.com.vn/dong-nam-bo/202505/cuoc-dua-dau-tu-cac-khu-thuong-mai-tu-do-4da1b5c/