Vietnam Designates Da Nang as Nation's Inaugural Free Trade Zone

Strategic move aims to attract global investment with tax breaks and deep-water port to boost economic growth

 

Vietnam has officially approved the establishment of its first Free Trade Zone (FTZ), to be located in Da Nang, the prominent central Vietnamese port city and technology hub. 

 

This strategic move is accompanied by a suite of incentives designed to attract international investors, leveraging the city's deep-water port, robust infrastructure, and burgeoning technological capabilities. 

 

Da Nang is also slated to host an "international financial centre" within the next few years.

 

This significant development is part of Vietnam's broader economic strategy to accelerate growth and achieve high-income status by 2045.

 

While Da Nang is renowned for its attractive beach resorts, it has increasingly become a magnet for both domestic and foreign investment in recent years. 

 

The city boasts one of Vietnam's leading technology centres, characterised by strong economic prospects, appealing tourist destinations, and well-developed infrastructure.

 

The new 1,881-hectare Free Trade Zone will specifically focus on fostering innovation across manufacturing, logistics, trade, services, digital technology, and information technology.

 

"The long-term objective is to transform the Da Nang Free Trade Zone into a pivotal component of the global and Asia-Pacific supply chain network, as well as a global manufacturing and logistics hub," stated the Prime Minister in the official approval document for the FTZ's establishment.
  

Industries earmarked for particular emphasis include high-tech, biopharmaceuticals, energy, renewable energy, and aviation.

 

The document further specifies that the duty-free area will accommodate businesses providing goods or services in sectors such as hospitality, education, healthcare, and sports.

 

A key strategic advantage for the FTZ will be its utilisation of Lien Chieu Port, which is set to become one of Vietnam's three deep-water ports. Lien Chieu Port is designed to handle an annual cargo volume of between 8.7 million and 13.7 million tonnes by 2030.

 

Operators within the zone will benefit from various incentives, including tax reductions, exemptions or lower land lease fees, and streamlined licensing procedures.

 

Da Nang's urban area has expanded dramatically, now covering over 11,000 square kilometres following its merger with Quang Nam province.

 

The city is already home to several prominent technology companies, including FPT, which established an AI and semiconductor centre there earlier this year.
  

In a related move to attract global talent and investment, Vietnam's National Assembly has approved amendments to its Citizenship Law.

 

These changes will ease the process for foreign investors, scientists, and former Vietnamese citizens seeking to regain their citizenship.

 

Under the previous legislation, stateless individuals or foreigners applying for Vietnamese citizenship faced stringent requirements, such as permanent residency status with a valid permanent residence card and proof of renouncing their original citizenship, which could impact their rights abroad.

 

The new law, however, streamlines this process, particularly for highly skilled professionals like investors, scientists, and experts, enabling them to apply for Vietnamese citizenship under more relaxed conditions. 

 

Applicants who have made significant contributions to Vietnam's development or provided substantial benefits to the state will be exempt from several legal requirements. 

 

Furthermore, such individuals may be permitted to hold dual citizenship if they meet criteria similar to those with Vietnamese relatives and receive presidential approval. Applications from overseas residents can also be submitted through Vietnamese embassies in their respective countries.

(2025/06/24-00:00)