Da Nang Accelerates Development of Free Trade Zone

Amid Vietnam’s push for deeper integration and economic restructuring toward an open model, the Da Nang Free Trade Zone (DNFTZ) is recognized as a national strategic project that creates new opportunities for Da Nang to become the central economic, financial, and logistics hub of Central Vietnam, serving as an international trade gateway linking the East-West Economic Corridor to global markets.

Launch of the investment project for the construction and operation of infrastructure in Functional Zone No. 5, Da Nang Free Trade Zone

The government’s approval of Decision 1142/QD-TTg on June 13, 2025, establishing DNFTZ marked a key milestone in the city’s development and affirmed Da Nang’s role as a pioneer in piloting a new economic model that integrates open policies, modern technology, and sustainable development.

A new growth engine for Da Nang

Under the master plan, DNFTZ will develop a dual model combining a modern logistics hub with an international commercial area, closely connected to Lien Chieu Port, Da Nang International Airport, and the North-South Expressway and La Son-Tuy Loan routes, forming an integrated, intelligent, and sustainable supply chain for Central Vietnam.

A strategic highlight of DNFTZ is its “Smart Free Trade Zone” model, an end-to-end digital governance and operational ecosystem, piloted for the first time in Vietnam. This model leverages core Industry 4.0 technologies, including artificial intelligence (AI), big data, the Internet of Things (IoT), and blockchain to manage investment, logistics, trade, customs, and services in a fully synchronized manner.

According to the Da Nang High-Tech and Industrial Zones Authority (DSEZA), the “Smart Da Nang Free Trade Zone - Phase 1” project institutionalizes central directives on innovation, digital transformation, and the development of specialized economic zones. The smart FTZ system will function as a “digital brain” for the entire zone, enabling real-time data integration, transparent management, and data-driven decision-making, directly linked to the city’s Intelligent Operations Center (IOC) and Security Operations Center (SOC).

DSEZA reported that under Plan 07/KH-UBND, it is carrying out 18 key tasks to achieve the FTZ’s development goals. Two major tasks have been completed: partial updates to Da Nang’s master plan and the launch of a DNFTZ hotline to serve as the central point for receiving and processing information from enterprises and investors. The remaining 16 tasks are on schedule, focusing on building digital infrastructure, detailed planning, and developing the smart governance model, which will form the foundation for the investment promotion phase expected to start by the end of 2025. At the same time, DSEZA is accelerating strategic investment promotion to select key infrastructure partners and create a “momentum cluster” across logistics, trade, and innovation.

According to experts, DNFTZ goes beyond a conventional duty-free zone. It also functions as a policy sandbox to test new tax, customs, financial, and technology transfer incentives, aiming to meet the standards of successful regional models such as Shenzhen in China, Busan-Jinhae in South Korea, and Jebel Ali in the UAE.

Notably, DNFTZ is being developed using a dual approach that combines physical planning with digital infrastructure, ensuring coordination and strong connectivity across functional zones. Approximately one-third of the work has been completed, including reviewing boundaries, scale, and integration with existing urban and industrial areas.

DSEZA is also working with central ministries and agencies to finalize specialized incentive policies, creating a competitive investment environment on par with international free trade centers. Once completed, the Smart Da Nang Free Trade Zone will not only represent a new economic development model but also a symbol of institutional capacity, digital governance, and sustainable vision, positioning Da Nang as the leading logistics, innovation, and international trade hub in Central and Central Highlands Vietnam.

DSEZA hosts a meeting with the European Chamber of Commerce and the German Business Association

A new hub for global supply chains

With its strategic location, Da Nang is well-positioned to develop a free trade zone, a model typically found only at major logistics hubs.

DNFTZ is expected to become a regional hub for goods transit, finance, and technology in Central Vietnam, attracting multinational corporations in high-tech, logistics, cross-border e-commerce, and international financial services. Once fully operational, the FTZ is projected to increase Central Vietnam’s import-export turnover by 15 to 20% annually, create tens of thousands of high-quality jobs, and strengthen Vietnam’s competitiveness in global value chains.

The city is also prioritizing green and sustainable development. Infrastructure projects are being designed under a “Smart, Green, Paperless FTZ” concept, using digital management technologies, automating logistics processes, and integrating with electronic customs systems. This green FTZ model will reduce emissions and provide a competitive advantage in attracting ESG-focused investors, supporting Vietnam’s sustainability targets and Net Zero commitment by 2050.

Accelerating institutional and infrastructure completion

To achieve these goals, the city government has directed DSEZA to work with central ministries to finalize management models, financial mechanisms, and human resource policies for the DNFTZ.

On the ground, key infrastructure projects are progressing rapidly, including transport links from Lien Chieu Port to DNFTZ, expansion of regional logistics routes, and preparation of cleared land for Phase 1 investment.

According to DSEZA, in addition to 18 tasks under Plan 07/KH-UBND, the authority is implementing 10 tasks under Notice 153/TB-VP dated August 14, 2025. Three of these 10 tasks have been completed, focusing on detailed planning, capital preparation, and international cooperation promotion.

Notably, Da Nang has finalized DNFTZ’s brand identity, positioning it as a “Global Trade Center - Asia Gateway,” while actively promoting the FTZ’s potential to domestic and international business communities.

A new growth engine for Da Nang and the region

The establishment and development of DNFTZ have strategic importance beyond investment. They mark a key step in the city’s 2045 development strategy to become an international finance, trade, and logistics hub, enhance regional connectivity, and attract high-quality FDI.

With its open and flexible model that combines technological innovation, smart logistics, and sustainable development, DNFTZ is expected to become a new symbol of free and creative economic growth in Vietnam. It will support Da Nang’s goal of becoming a city that is livable, investable, and experience-worthy in the Asia-Pacific region.

By Thanh Tung, Vietnam Business Forum