Prime Minister okays 1,881-hectare free trade zone in central Vietnam

Prime Minister Pham Minh Chinh has approved the establishment of Danang Free Trade Zone (FTZ), which will cover approximately 1,881 hectares across seven non-contiguous locations.

Under the decision, the FTZ will encompass functional zones including manufacturing and logistics; trade and services; digital technology industries, information technology and innovation; and other functional areas as regulated by law.

The seven designated non-contiguous locations include 100 hectares and 77 hectares in Hoa Hiep Bac ward (Lien Chieu district); 500 hectares in Hoa Hiep Bac ward (Lien Chieu district) and Hoa Lien commune (Hoa Vang district); 559 hectares and 90 hectares in Hoa Ninh commune (Hoa Vang district); 154 hectares in Hoa Nhon and Hoa Ninh communes (Hoa Vang district); and 401 hectares in Hoa Nhon and Hoa Phu communes (Hoa Vang district).

The FTZ will be developed with modern and synchronized infrastructure across manufacturing, trade, logistics, technology, and high-quality services. It aims to become a regional economic hub and a strategic growth engine for central Vietnam and the country in the new development context.

In the long term, the zone is expected to become a crucial link in the global and Asia-Pacific supply chain networks. It will function as a manufacturing center and international goods transshipment hub, closely connected to Lien Chieu Port, Danang International Airport, and the East–West Economic Corridor.

It is also intended to drive advancements in high-tech industries, innovation, and digital transformation, contributing significantly to Danang's economic restructuring, especially after its merger with Quang Nam province, with a focus on sustainability and deep integration.

The zone will be developed in alignment with the planned Danang International Financial Center, forming a modern, smart, and highly competitive economic ecosystem. This will enhance Vietnam’s regional and international standing in the context of globalization.

Regarding the functional areas, the manufacturing and logistics area will be developed into a modern manufacturing and logistics hub, integrating technical infrastructure and digitalization to enhance productivity and strengthen connectivity with regional and global supply chains.

The trade and services area will be shaped into an international-standard one, supporting activities such as trade, duty-free retail, tourism, resorts, accommodation, and a wide range of business support services. These include logistics, e-commerce, education, healthcare, entertainment, sports, and other auxiliary services - all aimed at fostering a knowledge economy and regional integration.

The digital technology industry, information technology, and innovation area, along with other functional areas, will be developed into a high-tech and innovation center. It will attract digital technology enterprises, R&D institutions, tech startups, and digital transformation initiatives.

The goal is to enhance regional and national competitiveness in the global digital economy by advancing emerging technologies such as AI, semiconductors, big data, and cloud computing.