Investors flock to newly-formed free trade zone in central Vietnam

Danang city authorities on Sunday handed over MoUs to eight strategic investors in the Danang Free Trade Zone (FTZ), right at a ceremony to announce the zone's establishment.

The investors include Sun Group, Singapore’s Terne Holdings, The One Destination, BRG Group, Thanh Binh Phu My JSC, Imex Pan Pacific Group, Phuong Trang Investment Corporation, and Newtechco Group.

Four more investors received approvals to conduct feasibility studies for potential projects, including Amata VN Public Company Limited, Green i-Park JSC, Guoguang Electric (Vietnam) Co., Ltd., and European Plastic JSC.

Opportunities open for investors

According to Chairman of the municipal People's Committee Le Trung Chinh, the establishment of the FTZ is seen as a breakthrough step and a new institutional model.

"It is expected to create a globally competitive development space capable of driving green growth, innovation, and strategic investment attraction," he told the event.

The zone will include various functional areas: manufacturing, logistics, commerce and services, digital technology, innovation, and other specialized zones as defined by law.

It is designed to integrate with the future International Financial Center to help Danang become a hub of high-quality services, generating spillover economic effects across the central and Central Highlands regions, and the entire country. The zone is also expected to be a key connector in the East-West Economic Corridor, the Asia-Pacific, and the globe.

Chinh stated that Danang has proactively reviewed and prepared a plan with numerous key tasks to ensure the FTZ becomes operational soon.

“The city will continue to propose standout and open mechanisms and policies for the FTZ to the National Assembly, the Government, and the Prime Minister, while researching potential new locations after merging with Quang Nam province,” he said.

Dang Minh Truong, chairman of leading developer Sun Group, stated that the establishment of the FTZ - Vietnam’s first pilot model - demonstrates the city’s long-term strategic vision and opens up great opportunities for investors including his group.

Along with the International Financial Center, the FTZ will form a world-class ecosystem for living, working, and entertainment, attracting global investors and financial institutions. It is expected to contribute 12-13% of GRDP by 2030, 16-17% during 2030-2040, and 25-26% by 2050.

Sun Group commits to accompanying the city in researching, investing in, and developing service infrastructure for tourism, logistics, commercial centers, healthcare, and innovation-driven tourism within the FTZ, Truong said.

Specifically, the group will invest in Zones 5, 6, and 7, covering about 645 hectares. Zones 5 and 6 will be developed into high-quality commercial-service-resort complexes, including eco-resorts, wellness tourism, luxury tourism with duty-free shops, and hi-end shopping centers. Zone 7 will be developed into a digital health, IT, and innovation hub combined with commerce and services to form a modern scientific complex.

According to Permanent Deputy Prime Minister Nguyen Hoa Binh, the FTZ will help connect Danang to the global economy, providing a strong boost not only to the city’s current and future economy but also to the entire region and country.

“In addition to the FTZ, the Danang government has approved other major initiatives for the city, such as the International Financial Center, the deepwater port, and the 'River of Light' project. These will surely propel Danang’s future development,” he said.

The Deputy PM emphasized that although the Danang FTZ is the first of its kind in Vietnam, it is expected to succeed and provide valuable lessons for future FTZ projects nationwide.

Following the merger between Danang and Quang Nam to form a new Danang, the municipal economy is expected to expand with greater capacity and potential, as well as stronger connectivity with world heritage sites, he said.

Binh asked the city to broaden its vision and integrate more closely with other economic zones in Chu Lai, Tam Ky, and coastal areas.

He also asked the new city to invest more in its underdeveloped western region, aside from coastal and urban development.

The central government, he assured, will continue to support Danang with institutional reforms, simplified and transparent administrative procedures, and tailored mechanisms.

“We warmly welcome and thank domestic and international businesses that have contributed to the transformation of Danang, and we look forward to continuing to build the city into a strong economic engine of the country and the region,” he concluded.