Economic growth anticipated through establishment of free trade areas
Vietnam's economic growth continues to soar, with the Government's recent establishment of the Đà Nẵng Free Trade Zone (FTZ) marking just the beginning of a nationwide push for FTZ development. Beyond the already established FTZs in Da Nang and Hai Phong, several new FTZs are in the works across various provinces.
In the southern region, Khánh Hòa Province is studying a model for a new FTZ centred around marine economic development and high-end international services. The proposed location for this FTZ is the Vân Phong Economic Zone, a key growth engine in the south-central region.
Moving to the central province of Hà Tĩnh, local authorities are working towards establishing a Vũng Áng Free Trade Zone, envisioned as an international logistics hub serving the wider Indochina region. The plan for this FTZ is currently in proposal drafting, with authorities aiming to submit it for approval soon.
Đồng Nai, a southern province, also plans to develop an FTZ, leveraging infrastructure such as the Long Thành Airport to link economic activities within its FTZ. The estimated cost to build the Đông Nai FTZ is around US$16 billion.
These initiatives reflect a broader nationwide ambition, with many localities "laying the groundwork" to create FTZs aimed at boosting economic growth, expanding international trade, and enhancing logistics and manufacturing capacity beyond Da Nang and Hai Phong.
The Đà Nẵng FTZ, for instance, will serve as a manufacturing hub and an international cargo transit center, connected with Liẽn Chiểu Port, Đà Nẵng International Airport, and the East-West Economic Corridor. Its goal is to become a regional economic center and a strategic growth pole for the central region and the whole country.
The Đông Nai FTZ plans to have four functional subzones: manufacturing, logistics, finance-commerce-services, and research, innovation, information technology, and digital economy.
In the north, the Hải Phòng FTZ model is expected to help attract investment capital and become a logistics hub due to special mechanisms on foreign currency and land leasing. Deputy Prime Minister Nguyễn Hòa Bình emphasized that if successfully developed, the Đà Nẵng FTZ would be a "catalyst" for connecting the global economy.
The Government has also set an economic target of achieving double-digit growth starting from 2026. To support these emerging FTZs, the Vietnamese government is modernizing customs procedures, simplifying clearance, and providing tax incentives, which will benefit these FTZs by lowering barriers for investors and promoting export competitiveness.
There's also mention of plans for a financial FTZ in Ho Chi Minh City, further indicating expansion beyond current zones. The Bà Rịa-Vũng Tàu FTZ, which was planned to cover over 3,749 hectares, focusing on digital economy, green economy, and circular economy as its core and driving forces, is another testament to Vietnam's commitment to sustainable and innovative economic growth.
References:
[1] Vietnam Briefing
[2] Vietnam Plus
[3] Vietnam Insider
[4] Vietnam Investment Review
[5] Vietnam Investment Review
- The Government's goal is to achieve double-digit economic growth starting from 2026, which may be facilitated by the development of a financial FTZ in Ho Chi Minh City.
- Beyond the already established FTZs in Da Nang and Hai Phong, there are plans for a new FTZ in Khánh Hòa Province, centered around marine economic development and high-end international services.
- The proposed location for the new FTZ in Khánh Hòa Province is the Vân Phong Economic Zone, a key growth engine in the south-central region of Vietnam.
- The Đơng Nai FTZ plans to have four functional subzones: manufacturing, logistics, finance-commerce-services, and research, innovation, information technology, and digital economy.
