Building a free trade zone: A driving force for breakthroughs, attracting strategic investors

The establishment of a Free Trade Zone associated with Lien Chieu Port and Da Nang International Airport will promote production, logistics, import-export processing and the construction of an international cargo transit center... Photo: PHUONG ANH

New momentum from breakthrough mechanism

One of the highlights of Resolution No. 136/2024/QH15 of the National Assembly on the organization of urban government and piloting specific mechanisms and policies for Da Nang is allowing the city to pilot the establishment of a free trade zone.

This is a model that has proven successful in many countries but is being applied for the first time in Vietnam, promising to help Da Nang make a spectacular breakthrough in the coming time. Associate Professor, Dr. Bui Quang Binh, advisor to the Department of Industry and Trade of Da Nang, who is also directly involved in developing the project to establish a free trade zone, said that the construction of a free trade zone comes from promoting Da Nang's strategic strengths in terms of geographical location, deep-water seaport and international airport. The formation of a free trade zone is identified as a key solution to help Da Nang grow strongly.

In fact, Da Nang city has all the ideal conditions to develop a business urban model integrating many functions: production, logistics, trade and services. The free trade zone will be linked to the development of Lien Chieu port and Da Nang international airport, creating momentum for the city to become a regional and international freight transit center.

Mr. Vu Quang Hung, Head of the Management Board of Da Nang High-Tech Park and Industrial Zones, said that the city has planned 10 locations to develop free trade zones, attracting strategic investors to participate in infrastructure development in 3 main functional areas: production, trade - services and logistics; at the same time, it comes with a series of outstanding incentives in terms of procedures, taxes, customs and land rental.

Therefore, immediately after Resolution No. 136/2024/QH15 of the National Assembly took effect from January 1, 2025, Da Nang has been synchronously implementing the following steps: completing procedures for establishing the zone, connecting infrastructure, clearing land and selecting strategic investors with the determination to quickly put the free trade zone into operation, creating strong growth momentum for the city and the entire region.

According to Mr. Hung, the establishment of a free trade zone associated with Lien Chieu port and Da Nang international airport will promote production, logistics, import-export processing and build an international cargo transit center; at the same time, effectively connect industrial infrastructure, transportation, dry ports and railway stations, creating a complete value chain for the city.

Welcoming strategic investors

At the forum "Da Nang Free Trade Zone - New driving force for the development of Da Nang's logistics industry" organized by the City People's Committee at the end of 2024, Ms. Tran Thi Hong Minh, Director of the Central Institute for Economic Management Research, said that Da Nang has many advantages to develop a pioneering free trade zone, thanks to its strategic geographical location, seaport system, convenient transportation, and easy connection with domestic and international economic centers.

Accordingly, investing in modern logistics infrastructure from seaports, airports to warehouse systems and distribution centers will be a key factor, helping to reduce costs, shorten transportation times and increase competitiveness. Ms. Minh also proposed building a flexible legal framework, attractive incentive policies, sustainable development with high environmental standards and promoting digital transformation in the free trade zone. Ms. Minh also predicted that this area will contribute 8-9% of the city's GRDP by 2030 and increase to 25% by 2050 as well as creating more than 137,000 high-quality jobs in the fields of technology, logistics and trade services.

According to Ms. Le Thi Kim Phuong, Director of the Department of Industry and Trade, the free trade zone will closely integrate seaport and airport logistics with trade, processing industry and high-tech services. The complete scale is over 2,017 hectares, arranged in 10 flexible areas, connecting with key traffic routes. Many businesses and investors are seeing the Da Nang Free Trade Zone as a "golden opportunity".

Mr. Le Quang Duc, Deputy General Director of Da Nang Seaport Joint Stock Company, said that the free trade zone will create a huge volume of traffic, becoming a strong boost for the seaport system, especially Lien Chieu port, a strategic link in the supply chain. The Da Nang free trade zone not only promotes the local economy but also contributes to adjusting the global trade flow, bringing Vietnamese goods to the world faster.

Large domestic and foreign corporations as well as international biotechnology companies have been studying investment opportunities in Da Nang, especially in the fields of semiconductors, artificial intelligence (AI), data centers, life technology and logistics.

It can be said that the Da Nang Free Trade Zone is one of two breakthrough policies identified by Resolution No. 136/2024/QH15 of the National Assembly, along with the development of the semiconductor and AI industries.

This is a strategic step to realize the goal of Resolution No. 43-NQ/TW of the Politburo on building and developing Da Nang city to 2030, with a vision to 2045, as well as striving to turn Da Nang into a major socio-economic center of the country and Southeast Asia by 2045.

With methodical steps, specific mechanisms and existing potential, the Free Trade Zone is expected to become a big "push", bringing Da Nang to the position of a regional trade, logistics, production and technology center in the next decade.

TRONG HUNG

Source: https://baodanang.vn/kinhte/202504/xay-dung-khu-thuong-mai-tu-do-dong-luc-but-pha-thu-hut-nha-dau-tu-chien-luoc-4005934/