 |
New driving force from breakthrough mechanisms
One of the highlights of Resolution No. 136/2024/QH15 of the National Assembly on the organisation 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.
The free trade zone model that has proven successful in many countries is being applied for the first time in Viet Nam, promising to help Da Nang make a spectacular breakthrough in the coming time.
Assoc. Prof. Dr. Bui Quang Binh, an advisor from the municipal Department of Industry and Trade who is also directly involved in the project to establish a free trade zone, said that the idea for building a free trade zone came from the desire to promote Da Nang's strategic strengths regarding geographical location, deep-water seaport and international airport. The formation of a free trade zone is identified as a key solution to help the city grow strongly.
In reality, Da Nang has all the ideal conditions to develop a business urban model that integrates many functions such as production, logistics, trade and services. The free trade zone will be associated with the development of Lien Chieu Seaport and Da Nang International Airport, creating momentum for the city to become a regional and international freight transit centre.
Mr. Vu Quang Hung, Head of the Management Board of Da Nang’s High-Tech Park and Industrial Zones, said that the city has planned 10 locations to develop free trade zones, and plans to attract strategic investors to participate in infrastructure development in 3 main functional sub-areas: production, trade - services and logistics. At the same time, the city offers a series of outstanding incentives in terms of procedures, taxes, customs and land lease.
Therefore, immediately after Resolution No.136 took effect from January 1, 2025, Da Nang has been concentrating on 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 for sake of creating a 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 Seaport and Da Nang International Airport will promote production, logistics, and import-export processing, as well as build an international cargo transit centre and effectively connect industrial, transportation, port and railway infrastructure in a bid to create a complete value chain for the city.
Welcoming strategic investors
Speaking at the forum "Da Nang Free Trade Zone - New driving force for the development of logistics industry in Da Nang" hosted by the municipal People's Committee in late 2024, Ms. Tran Thi Hong Minh, Director of Viet Nam's Central Institute for Economic Management (CIEM) emphasised that Da Nang boasted many advantages to develop a pioneering free trade zone, including a strategic geographical location, a convenient seaport and transportation system, and easy connection with domestic and international economic centres.
Accordingly, the city’s investment in modern logistics infrastructure from seaports, airports to warehouse systems and distribution centres will help reduce costs, shorten transportation times and increase competitiveness.
Ms. Minh also proposed building a flexible legal framework and attractive incentive policies, promoting sustainable development with high environmental standards, and boosting digital transformation in the free trade zone.
She also predicted that the free trade zone will contribute 8-9% of the city's GRDP by 2030 and 25% by 2050 as well as create 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 municipal 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 completed scale of the zone will be over 2,017 hectares, and will be arranged in 10 flexible areas, connecting with key traffic routes. Many businesses and investors are considering the soon-to-be-developed Da Nang Free Trade Zone as a "golden opportunity".
Mr. Le Quang Duc, Deputy General Director of the Da Nang Seaport JSC, said that the free trade zone will create a huge amount of transport, becoming a strong boost for the seaport system, especially Lien Chieu Seaport, and a strategic link in the supply chain. The Da Nang Free Trade Zone plays a fundamental role in not only fostering the local economy but also 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 semiconductor, artificial intelligence (AI), data centres, 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 by 2030, with a vision to 2045, as well as striving to turn Da Nang into a major socio-economic centre 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", developing Da Nang into a trade, logistics, production and technology centre of the region in the coming decade.
