Adding more appeal to the free trade zone.

A key highlight of Resolution No. 259/2025/QH15 is the addition of more incentives for the Da Nang Free Trade Zone. This will further attract international investment to the city.

Perspective view of the investment project for the construction and operation of infrastructure in the commercial and service functional area at location No. 5, Da Nang Free Trade Zone. Photo: MQ

Many outstanding offers

In the free trade zone, the corporate income tax incentive applied to new investment projects in the fields of high technology, research and development (R&D), supporting industries, clean energy vehicles, aviation/railway equipment, and logistics centers is 10% for 30 years, with a tax exemption for 4 years and a 50% reduction in tax payable for the following 9 years. This is a very attractive tax rate compared to the basic standard tax rate (20%).

Other new investment projects in the zone enjoy a corporate income tax rate of 10% for 15 years, a tax exemption for 4 years, and a 50% reduction for the following 9 years.

Goods and services bought, sold, or exchanged between functional zones within a free trade zone, with foreign countries, or with other functional zones within a free trade zone that meet the conditions of a duty-free zone are subject to the same tax policies as a duty-free zone.

The buying and selling of goods and services between functional zones and the outside area constitutes import and export relations as regulated by laws on customs, taxes, and import and export, except for functional zones within other free trade zones that meet the conditions of a duty-free zone.

Goods in transit, or goods temporarily imported for re-export, may be stored in the free trade zone for a maximum of 90 days from the date of completion of customs procedures at the import port, with no more than two extensions per shipment, each extension not exceeding 60 days.

Foreign investors are allowed to own up to 49% of the charter capital of businesses operating in the following sectors: airport operations; provision of cargo terminal operation services, aviation fuel, ground handling and commercial technical services, airfield operation services; and in-flight catering services. For businesses undertaking investment projects to establish international cargo transshipment logistics centers at airports, foreign investors are allowed to own up to 51% of the charter capital.

In addition, a 50% reduction in personal income tax for 10 years will be granted to experts, scientists , talented individuals, managers, and highly skilled workers employed in the free trade zone to attract high-quality human resources.

In addition to the investment incentives stipulated in this clause, investment projects in functional zones within free trade zones are also entitled to incentives applicable to investment projects in economic zones as prescribed by relevant laws.

Businesses located and operating within functional zones of the Da Nang Free Trade Zone are recognized as eligible for preferential treatment under customs law when they meet the following conditions: electronic procedures, connection of information technology systems with customs, payment through banks, internal control systems, and good compliance with accounting and auditing laws.

Prime Minister Pham Minh Chinh chaired the conference. Photo: MAI QUE

Expectations to attract investors

According to Le Thi Kim Phuong, Director of the Department of Industry and Trade, many domestic and foreign investors have recently visited, surveyed, and expressed interest in the Da Nang Free Trade Zone. Investors from Japan, South Korea, Singapore, the United States, and China have shown the attractiveness of this first free trade zone model in Vietnam.

For example, Sumitomo Group (Japan) has worked with the city, and Korean businesses such as Hyundai E&C have proposed researching a series of key projects such as developing infrastructure for a free trade zone, a financial center, and a data center...

KOGI Group also expressed its desire to invest in large-scale projects in materials technology, including a refinery and oil storage facility positioned as the largest in Southeast Asia, and a complex for manufacturing internal combustion engine components using hydrogen technology to reduce emissions.

The group of Singaporean investors includes Bitdeer, which is exploring the development of a data center and high-value goods storage facility; Soilbuild, which is interested in investing in free trade zone infrastructure; and ST Telemedia, which is surveying data center models as well.

Chinese investors, including the Shandong Overseas Enterprise Development Promotion Association, Topgene Biotechnology, and Capstone Investment, are focusing on industrial infrastructure development projects aimed at attracting pharmaceutical manufacturing companies and are surveying key infrastructure projects in the city.

In addition, CT-Strategies (USA) wants to participate in consulting related to the free trade zone model; VinaLog Holding AG (Switzerland) also proposed projects on logistics and infrastructure development in this area…

To attract significant resources and establish a comprehensive infrastructure system, the resolution added a provision requiring simultaneous approval of investment policies and investor approval for free trade zone infrastructure projects with a scale of VND 3,000 billion or more. Investors must have a minimum equity capital of 20% of the total investment, ensuring financial capacity and a commitment to long-term development. This mechanism helps select truly capable businesses, creating a foundation for the formation of a modern free trade zone that serves as a gateway for trade and attracts international investment.

Furthermore, a significant advantage of the Da Nang Free Trade Zone is that investment projects are completely exempt from land and water surface lease fees for the entire lease term, except for housing projects and projects on commercial and service land.

Source: https://baodanang.vn/them-suc-hap-dan-cho-khu-thuong-mai-tu-do-3316039.html