Vietnam's Deputy PM backs formation of free trade zone in Binh Dinh province

Vietnam’s Deputy Prime Minister Nguyen Chi Dung on Friday expressed his support for an early study of a free trade zone in Phu My Port area, the south-central province of Binh Dinh.

Vietnam currently does not have any free trade zone and is still considering the establishment of such zones in Hai Phong, Danang, and Ba Ria-Vung Tau, Dung told a local investment promotion conference.

“Binh Dinh identifies itself as an economic center, a growth pole, a leader in the central region, with advantages in ports and great potential. The province can certainly establish a free trade zone to promote new growth drivers," the Deputy PM emphasized.

At the event, economist Tran Du Lich, a member of the National Financial and Monetary Policy Advisory Council, stated that the province is on the right track regarding planning and investment orientation based on five growth pillars: industry, tourism, high-tech agriculture, port and logistics services, and urban economy tied to urbanization.

According to Lich, Binh Dinh has enormous potential for offshore and near-shore wind energy. An expected wind power capacity of about 10,000 MW will be the basis for the province’s green and digital transformation, he said.

"This energy plan will create favorable conditions for big data center projects. Furthermore, Binh Dinh is calling for investment in the construction of a new deep-water port to connect with the Central Highlands and the industrial belt," he noted.

Lich added that the Phu My Industrial Park and Phu My Port should not only focus on industry but must also participate in the global value chain. "The industrial park and port complex should be developed as a free trade zone, which will provide advantages for the port to integrate into the global value chain in this new phase."

The Phu My Industrial Park phase 1 project, located in the Phu My IP Planning Area in My An and My Tho communes, Phu My district, has an investment of VND4.6 trillion ($179.85 million), with Phu My Investment Group JSC as the investor.

On the same day, provincial authorities also granted an MoU on investment cooperation for the VND2.3 trillion Phu My Port project, located in the same district, to this company.

Addressing the investment promotion conference, Thorsten Fastenau, executive vice president of Germany’s PNE AG, said that the company is currently developing the Hon Trau offshore wind power project in Binh Dinh province, with a total capacity of about 2,000 MW.

The $4.6 billion project is divided into three phases, each with a capacity of up to 750 MW. Its first phase is expected to become operational by 2030.

He recommended that the legal framework for renewable energy be completed soon to allow PNE to quickly obtain necessary approvals and permits, including investment approval and marine survey permit.

Early licensing of the project and the establishment of competitive, attractive electricity prices are crucial to its success, enabling the implementation of a large-scale, national-level project, Fastenau noted.