Danang eyes nation’s first free trade zone

Danang city in central Vietnam has proposed the establishment of a free-trade zone (FTZ) that will embrace Lien Chieu seaport and Danang International Airport.

The proposal was made at a Monday meeting between municipal officials and a central government team that sought to work out special incentives that would boost the city’s socioeconomic development.

According to the city’s proposal, the FTZ will house a range of activities including processing for export, logistics and trading in duty-free goods.

Enterprises operating in the FTZ will not only enjoy the same investment incentives as those for economic zones, but also special policies meant to create breakthroughs for the city.

The municipal government will be allowed to adjust the FTZ plan approved by higher authorities and acquire land for its construction.

Infrastructure investors within the FTZ will be allocated land that they can lease or sublease like those operating in economic zones, industrial parks and export processing zones.

Once operational, this would be the first FTZ in Vietnam.

Other proposals by the city included a pilot plan to build technical infrastructure works like logistics service centers; incentives related to recruitment, salary, training and personal income tax to lure talents; and a supporting center for semiconductors and artificial intelligence.

The city also sought permission to apply a sandbox for blockchain applications in the management and trading of digital assets; investments and exploitation of assets targeting science-technology applications and innovation.

The city also proposed 21 other policies that are either identical or similar to those applied at other localities.

Those proposals were meant to amend a parliamentary resolution issued in 2020 on piloting an urban administration model and several special policies for developing Danang further.

At the meeting, Minister of Planning and Investment Nguyen Chi Dung, head of the workforce, noted that Danang should propose mechanisms and policies that are effective, practical and feasible. He suggested the city work on measures to turn itself into a regional financial hub or develop the semiconductor industry.