Central Vietnam city Danang pushes forward with Free Trade Zone project, eyes strategic investors

Danang is zoning off land areas, building infrastructure, proposing policies, and actively seeking strategic investors to soon put its Free Trade Zone (FTZ) into operation.

As Vietnam’s first FTZ, envisioned as a model to be replicated nationwide, the project has drawn significant attention.

According to the Vietnam Institute of Architecture, FTZ development should be based on four pillars: digital platforms and global trade connectivity, technology and digital transformation, legal and institutional frameworks, and cybersecurity and data protection.

For planning and architecture, the institute proposed integrated connections with seaports, airports, railways, the East-West Economic Corridor, and nearby industrial zones.

Clear functional subdivisions are needed for production, logistics, financial services, expert housing, trade exhibitions, and green spaces. Large-scale service facilities should be built for both the FTZ and the city, with modern, energy-efficient, and eco-friendly designs.

The institute also recommended studying the Dubai International Financial Centre (DIFC), Singapore’s Raffles Place, and Shenzhen’s Qianhai to choose a successful approach suited to local conditions.

Priority should go to fintech, green finance, digital banking, and asset management - fields with high growth potential and limited land demand. Initial development could focus on “pioneer nuclei” such as fintech clusters, digital payment centres, and startup hubs, before expanding into an integrated financial model.

A transparent business environment, streamlined administration, one-stop mechanisms, and special FTZ policies are deemed prerequisites. Human resource strategies are equally important, linking universities, research institutes, and international training organizations, while attracting foreign experts with flexible visas, good living conditions, and competitive incentives.

Technology and logistics infrastructure

According to Viettel Solutions, the FTZ should optimize supply chains, shorten customs clearance times, and boost cargo volumes. Integrated data technology, real-time monitoring, and comprehensive management are the key.

The company proposed forming Da Nang Port Logistics Centre with six functional zones, warehouses, container yards, transshipment, support services, offices, multimodal transport, and specialised inspection areas.

It also suggested an Off-Airport Cargo Terminal to reduce pressure on Danang International Airport and the development of a modern inter-regional logistics hub. Value-added services such as sorting, packaging, insurance, tax refunds, and smart inventory management should be prioritised.

The roadmap targets a digital foundation by 2025-2026, expanded digitalization and smart governance from 2027-2030, and full leadership in digital transformation after 2030.

Pham Hong Diep, chairman of the board of directors of Shinec JSC, proposed planning infrastructure development, investment attraction, global financial connectivity, human resources, and digital infrastructure.

He also suggested studying the Chu Lai-Dung Quat corridor (800-1,000 ha), near Ky Ha Port and Chu Lai Airport, to leverage logistics advantages and strengthen regional links.

Between 2025 and 2032, the FTZ should align with major projects such as upgrading Tien Sa and Ky Ha ports, building the Danang-Chu Lai-Quang Ngai coastal expressway, promoting the Chu Lai-Danang high-speed railway, and upgrading Chu Lai Airport into an international cargo hub with an investment of $7.5-9 billion.

When the FTZ is established, opportunities will expand for private enterprises, especially small and medium-sized entities, Diep told local media, adding that Shinec is ready to join infrastructure projects when conditions are right.

Nguyen Tuan Hai, chairman of Alphanam Group, shared this view, recalling the Sao Do Group’s investment wave in Danang 20 years ago and affirming that “now is the truly ripe time.” He noted that the municipal administration has shown strong commitment to partnership and openness in resolving difficulties.