FTZ - A driving force for Da Nang's development.

(PLVN) - June 26, 2024 is considered a memorable day in the new development phase of Da Nang , when the National Assembly passed Resolution 136/2024/QH15 on the organization of urban government and piloting some specific mechanisms and policies for the development of Da Nang City.

Resolution 136 has a special provision, dedicating Article 13, with 2883 words, to regulating the establishment of the Da Nang Free Trade Zone (FTZ). This includes regulations on objectives, authority, establishment procedures, land policies, investment and tax incentives, customs priorities, infrastructure investment, and more for the Da Nang FTZ.

A policy breakthrough for Da Nang.

According to the plan, in the first quarter of 2025, the project will be appraised by relevant ministries and agencies and submitted to the Prime Minister for a decision on the establishment of the Da Nang Free Zone (FTZ).

Speaking with the Vietnam Law Newspaper, Mr. Huynh Huy Hoa, Director of the Institute for Economic and Social Development Research of Da Nang City, said that the Free Trade Zone (FTZ) model does not yet have a complete legal framework. However, the unique and superior policies for FTZ Da Nang stipulated in Resolution 136 are a driving force to strongly promote the city's development in the future.

The Director of the Institute for Economic and Social Development Research of Da Nang City analyzed that although Da Nang does not have a large area, it possesses advantages in terms of geographical location and infrastructure. The city is among the very few localities that have both an international seaport and an international airport. Da Nang's seaports play a key role in the Central region. Many important national routes pass through Da Nang.

These factors give the city a significant advantage in economic, trade, service, and tourism development, not only domestically but also in the Southeast Asian region. Da Nang also has strengths in manufacturing and high-tech development; and is a leading tourist destination attracting visitors nationwide.

"These are the prerequisites for proposing a pilot project to establish the Da Nang Free Trade Zone (FTZ), a breakthrough in policies for the city; and a basis for the expectation of strongly attracting FDI into Da Nang and the Central Vietnam region, promoting socio-economic development of Da Nang and the entire region," Mr. Hoa said.

Sharing the same view, Mr. Vu Quang Hung, Head of the Da Nang High-Tech and Industrial Parks Management Board (DHPIZA), affirmed that Da Nang has extensive experience in developing models similar to Free Zones (FTZs), such as high-tech parks and industrial parks. This is an important basis for researching new, more specialized, and enhanced policies for FTZs, in order to successfully develop this model, create new impetus for development, and further promote Da Nang's role in the region and the country.

Challenges and opportunities

According to the plan, the Da Nang Free Zone (FTZ) is one of 12 zoning plans of the city, with a total planned area of ​​nearly 1,300 hectares, including strategic investment projects such as Lien Chieu Port; Kim Lien Station on the North-South high-speed railway line; a logistics center; a high-tech zone, etc.

The Da Nang FTZ is also adjacent to tourist areas and attractions that are shaping the tourism brand of Da Nang City and Central Vietnam. This could create a dynamic area with the potential to attract international corporations to build concentrated shopping centers associated with high-quality services; diversifying commercial and service activities linked to Da Nang City's role as the central hub of Central Vietnam.

Da Nang Airport was rated as one of the 10 most improved airports in the world in 2020.

Before the National Assembly passed the Resolution establishing the Da Nang Free Zone (FTZ), for over a year, the city organized numerous conferences and workshops, seeking opinions from ministries, agencies, and many localities. Many leading experts and scientists also worked day and night to provide the city with a basis to present to the Government a specific policy for the pilot establishment of the FTZ.

However, as a pioneering and pilot project, there may be unforeseen difficulties. In particular, building a completely new legal framework, mechanisms, and policies to apply this model in practice is a very challenging task.

The Director of the Institute for Economic and Social Development Research of Da Nang City assessed that Da Nang will have to find ways to fully utilize the advantages of this model to serve overall development. If the model is successful, it will be a basis for spreading it nationwide. Even if it is partially successful, it will be valuable experience for policymakers to improve regulations. "To put the policy into reality, Da Nang will have more work to do, more difficult tasks, so it must have greater determination," Mr. Hoa said.

A view of Da Nang port.

In the context of Da Nang needing further development to consolidate its position as the economic center of Central Vietnam, establishing the Da Nang Free Trade Zone (FTZ) to pilot mechanisms and policies aimed at attracting high-quality investment, finance, trade, tourism, and services presents both challenges and new opportunities for Da Nang.

“The establishment of the Da Nang Free Zone (FTZ) will create an overall boost to the city's economy. It will also be a prerequisite for Da Nang to enter a new chapter in its development history. The Da Nang FTZ will help develop industries, encourage visitors to come for business and work, thereby creating a synergy for the city's tourism development. With its tax-incentive zones, the Da Nang FTZ will be an attractive destination for tourists as they have access to high-quality goods at reasonable prices.”

(Chairman of the Da Nang City Tourism Association, Mr. Cao Tri Dung)

Source: https://baophapluat.vn/ftz-dong-luc-phat-trien-da-nang-post538558.html