Da Nang strives to break through with new development models

In recent times, Da Nang has proactively proposed to the Central Government specific breakthrough mechanisms and policies in the spirit of Resolution No. 43-NQ/TW of the Politburo on building and developing Da Nang city to 2030, with a vision to 2045. Through these proposals, Da Nang has received much support and attention from the Central Government's leaders, in which the formation of a free trade zone and an international financial center is considered a boost for the city to "rise up" in the new era.

The city plans and allocates land at the 22-storey building, Danang Software Park No. 2 to prepare for the establishment of a financial center. Photo: M.QUE

Free trade zone according to international standards

On June 22, the City People's Committee held a ceremony to announce the Prime Minister 's decision to establish the Da Nang Free Trade Zone. This is an important event, affirming the efforts of the city government in coordinating with ministries, departments and branches to advise the Government, the Prime Minister issued Decision No. 1142/QD-TTg to establish the Da Nang Free Trade Zone.

Da Nang Free Trade Zone has a scale of about 1,881 hectares, located in 7 non-contiguous locations, including functional areas: production, logistics; trade - services; digital technology industry, information technology and innovation and other types of functional areas according to the provisions of law.

The operations, mechanisms, policies and management organization of the Da Nang Free Trade Zone shall be implemented in accordance with the provisions of Resolution No. 136/2024/QH15 of the National Assembly on the organization of urban government and piloting a number of specific mechanisms and policies for the development of Da Nang city and relevant legal documents. The development of the Da Nang Free Trade Zone shall be carried out according to a roadmap consistent with the national socio-economic development strategy, the general planning of Da Nang city and the approved goals and orientations for the development of the free trade zone, ensuring consistency, feasibility and efficiency.

According to Mr. Vu Quang Hung, Head of the Management Board of Da Nang High-Tech Park and Industrial Zones, Decision No. 1142/QD-TTg establishes important principles in operating the free trade zone, which are controlled liberalization on the basis of integrating modern pillars: free movement of goods, capital, data, and experts; applying preferential tariff policies; simplifying administrative procedures; sandbox testing mechanism for innovation, digital technology, new energy, and semiconductors; and organizing management according to a centralized, professional model, shifting strongly from control to creation.

The establishment of the Da Nang Free Trade Zone also carries a clear message: Vietnam is ready to enter a period of deeper and more flexible institutional reform, in line with the rules of global competition. Instead of incentives through tax and fee reductions, the Da Nang Free Trade Zone will follow a new model, where incentives come from management quality, procedure processing speed, market connectivity capacity and technological level.

Mr. Nguyen Tien Quang, Director of the Vietnam Federation of Commerce and Industry (VCCI), Central Highlands Branch, assessed that the special mechanisms of Da Nang approved by the National Assembly in recent times have created a wide open door, especially the formation of a free trade zone, associated with the advantages of location, general infrastructure, sea, air and road transport infrastructure of the city, creating a more open space for economic development.

Thereby, Da Nang will become a locality with high openness in trade and investment with countries in the region and the world. The free trade zone will help Da Nang promote all its advantages when compared with other localities in the region. In particular, in the context of Da Nang city and Quang Nam province entering the administrative consolidation stage, the establishment of the free trade zone is even more strategic when playing the role of connecting existing industrial parks with raw material areas, human resources and open development space.

City leaders (center) presented a memorandum of understanding on cooperation between the City People's Committee and investors on the development of the Da Nang Free Trade Zone. Photo: M.QUE

Financial center focusing on specialized fields

Decision No. 1142/QD-TTg emphasizes: developing the Da Nang Free Trade Zone in conjunction with the International Financial Center in Da Nang, forming a modern, smart, highly competitive economic ecosystem, creating great spillover, contributing to enhancing Vietnam's position in the region and internationally in the context of globalization.

According to Deputy Director of the Department of Finance Dang Dinh Duc, the Vietnam International Financial Center in Da Nang will focus on specialized areas such as green finance, trade finance serving small and medium enterprises, innovative enterprises, non-resident organizations and individuals (such as offshore financial services), cross-border trade activities associated with Free Trade Zones, high-tech zones, open economic zones, industrial zones, etc.; controlled testing of a number of new models such as digital assets, digital money, digital payments; attracting investment funds, remittance funds, small and medium-sized fund management companies; promoting the development of start-up projects providing financial solutions for consumer life, tourism, trade, logistics; support activities, consulting, development of related legal services. Thus, the financial center will focus heavily on innovation, applying strategic technologies such as artificial intelligence, cloud computing, quantum, big data, blockchain technology... to create competitive advantages.

Regarding the preparation for the establishment of the financial center, the city plans and arranges land funds at the 22-storey building, Danang Software Park No. 2 and the land in the center to ensure the requirements of a favorable geographical location, connecting Danang International Airport within a radius of 5-10km, ensuring conditions for telecommunications and ancillary services, especially the readiness of legal status, which can be deployed soon to attract strategic investors, investors providing other related financial services in the process of calling for and investing in the construction of the Vietnam International Financial Center in Danang.

The city plans to mobilize maximum private investment resources and public investment budget capital to invest in developing information technology infrastructure, databases, energy supply systems, technical infrastructure, connecting traffic infrastructure, and modern social infrastructure according to the smart urban model.

The city strengthens infrastructure for science and technology, innovation to support the development of digital finance and financial technology such as focusing on accelerating the progress of projects: laboratories serving the production of advanced packaging technology for semiconductor microchips with an investment capital of VND 1,800 billion; Da Nang Innovation Space project with a total investment of nearly VND 490 billion; promoting and attracting businesses to invest and develop data centers according to Tier III standards...

On the other hand, the city will work with strategic investors to study the possibility of participating in investing in infrastructure construction and developing a complex of financial centers and accompanying services in Da Nang. Regarding human resources, the city focuses on developing high-quality human resources in the fields of financial services, information technology, artificial intelligence, digital financial management and related majors to meet the local human resources in the operation and development of the financial center; linking and cooperating with domestic and international training centers to send Da Nang officials to study experience and practice at major international financial centers in the world.

It can be seen that the city has been preparing the conditions to be ready to form and develop the Da Nang Free Trade Zone and the Vietnam International Financial Center in Da Nang. With its position as the economic, political and cultural center of the Central region of Vietnam, Da Nang not only plays a strategic role in geopolitics and economics, but is also a coastal city with a particularly important position in the national development axis. With the attention of the Central Government and the consensus and efforts of the political system, businesses and people, Da Nang is facing the opportunity to participate more deeply in the global financial chain, actively contributing to the process of transforming the growth model and raising the national position. In the near future, Da Nang with its new stature, open development space and increasingly well-invested resources will become one of the leading localities in attracting, connecting and spreading the value of a modern, transparent and sustainable financial system.

CINNAMON

Source: https://baodanang.vn/kinhte/202506/da-nang-no-luc-but-pha-voi-cac-mo-hinh-phat-trien-moi-4010686/