Industrial goods production in Chan May - Lang Co Economic Zone

Many advantages

Hue has many factors to develop logistics: Located at the intersection of the North-South route and the East-West corridor, conveniently connected to Laos, Thailand, and Myanmar. In addition, Hue has a complete transportation system with the North-South Expressway, National Highway 1A and the trans-Vietnam railway passing through, along with Phu Bai International Airport with Terminal T2 with a designed capacity to receive 5 million passengers; including 1 million international passengers/year.

In particular, the Thuan An seaport overpass is about to be completed, opening a new connection axis from the city center to the coastal area, creating more conditions for port exploitation and coastal urban development. In addition, Chan May port is considered the "heart" of Chan May - Lang Co Economic Zone (CM-LC EZ) with 4 wharves, capable of receiving international cruise ships with a capacity of up to 7,000 tons.

Recently, at the 6th Regional Logistics Forum with the theme Cross-border Logistics held in Hue City, Mr. Nguyen Duy Minh, Vice President of the Vietnam Logistics Service Enterprises Association, shared: Developing a new generation transport corridor will help Hue awaken the potential of the East-West Economic Corridor (EWEC), especially in connecting cross-border trade between Vietnam and Laos. In the long-term vision, green logistics is not only in the field of transportation but also forms a comprehensive ecosystem, applying high technology, renewable energy, and smart management. This is the added value that Hue aims to become a bright spot in the region.

Along with the above infrastructure factors, the CM-LC EZ is also the nucleus for Hue City to have favorable conditions to build a free trade zone (FTZ), when this EZ in the adjusted planning until 2045 will become a multi-functional development area, with 5 sub-zones including seaport, industry, duty-free, urban and tourism.

Associate Professor, Dr. Ho Thi Thu Hoa, Director of the Vietnam Logistics Research and Development Institute, commented: Hue City has the advantage of Chan May port in the CM-LC Economic Zone, Phu Bai International Airport and the road and railway traffic system as the foundation to become a national logistics center, moving towards forming a modern FTZ.

Sharing the same view, many experts believe that FTZ in Hue will help businesses take advantage of bonded warehouses, processing, and packaging products at low cost and with quick procedures, thereby increasing the competitiveness of export goods.

In addition, the Prime Minister's Official Dispatch No. 47/CD-TTg dated April 22, 2025 on the construction of free trade zones and "duty-free ports" is also an important legal basis paving the way for Hue City to deploy a modern FTZ.

Act early

To realize the roadmap, Hue City needs to synchronously deploy many solutions, such as: Proposing the Central Government to pilot FTZ in CM - LC Economic Zone with special incentive mechanisms; mobilizing diverse capital sources from ODA, PPP, FDI; building infrastructure connecting ports - airports - highways; training international standard logistics human resources; strongly applying digital technology such as AI, Big Data, Blockchain in supply chain management and customs procedures.

Financial experts also noted that promoting the financial leasing model in logistics will help businesses easily access capital, invest in warehouses, modern vehicles and green services - key factors for sustainable development.

From an international perspective, experts recommend that Hue should build the image of a “Green - Smart - Transparent Logistics Center” to attract multinational corporations. This is a global trend, and also Vietnam’s commitment to the green development process.

Dr. Tran Thi Hong Minh, Director of the Central Institute for Policy and Strategy Studies, emphasized: Developing green logistics associated with FTZ in Hue integrating "Seaport + Logistics + Industry + Services" is not only a local goal but also a national goal, contributing to the deeper integration of the Central region with the global economy.

With the determination of the government, the companionship of businesses and the policy support from the Central Government, Hue's green logistics center and modern FTZ are expected to become a reality in the coming time. However, experts also believe that if Hue wants to realize the FTZ dream, it needs to clarify its "identity" and distinct advantages, avoiding duplication with other localities. One idea is to develop a green and smart FTZ, aiming at green logistics, low-carbon trade, combined with tourism, services and seaports. This could become Hue's own "mark" in the general development picture of the Central region.

Hue City can also propose to the Government a pilot FTZ mechanism in CM, with a moderate initial scale, then gradually expanding according to demand. Inviting international corporations in logistics, trade, and supporting industries to participate will be the key factor determining success.

According to the Director of the Central Institute for Policy and Strategy Research, developing Hue City into a green logistics center and FTZ is not a local task alone but a national strategy, which has a decisive impact on the development of the entire Central region, with distinct competitive advantages. Hue should start from a reasonable scale, focusing on logistics associated with EWEC, instead of embracing a large model from the beginning.

If carefully calculated and invested appropriately, Hue City can completely place itself on the map of FTZ zones in Vietnam, creating a driving force for sustainable socio-economic development, enhancing Vietnam's position on the world economic map.

Article and photos: Minh Van

Source: https://huengaynay.vn/kinh-te/huong-toi-tro-thanh-trung-tam-logistics-quoc-gia-khu-thuong-mai-tu-do-hien-dai-157592.html