Northern Vietnam economic hub eyes free trade zone

The port city of Hai Phong is moving ahead with plans to establish a free trade zone (FTZ) as part of its strategy to strengthen local growth in the next five years.

According to a document by the municipal People’s Committee, the Hai Phong Free Trade Zone will span about 6,292 hectares and be developed across three non-contiguous sites within the Southern Coastal Economic Zone and the Dinh Vu-Cat Hai Economic Zone.

It is designed as a comprehensive free trade hub covering manufacturing, port logistics, commerce and services.

The first site, covering 2,923 hectares, will be located in the Southern Coastal Economic Zone in Chan Hung and Hung Thang communes.

The second, at 1,077 hectares, would be situated in the Nam Dinh Vu Industrial and Non-tariff Zones. The third, a 2,292-hectare parcel, would be on Cat Hai island.

The project will be implemented in phases. Between 2025 and 2030, the city plans to complete the legal framework, build infrastructure, and pilot special policies, with an initial focus on the Dinh Vu-Cat Hai area. Investments will prioritize port and logistics facilities and key transport links.

Hai Phong authorities are expected to announce a formal plan to establish the free trade zone this year.

Speaking of the FTZ establishment plan on Tuesday, Le Tien Chau, Party chief of Hai Phong, said that the FTZ aims to create ample room for further growth, contributing to boost the gross regional domestic product (GRDP) in 2025-2030 by 13-14%.

Hai Phong is one of northern Vietnam’s leading manufacturing and logistics hubs. Following its recent merger with Hai Duong province, the expanded Hai Phong now hosts over 15 major industrial parks.

The city is also home to one of northern Vietnam’s largest deep-sea port systems, with annual cargo throughput growing at 12-15%. In 2024, its ports handled 190 million tons of goods, and the figure is expected to rise to 212 million tons by year-end.