Following the direction of the Politburo and the Central Government on its merger with Quang Nam province, Da Nang City has obtained a lot of development opportunities, most notably through Prime Minister’s Decision 1142/QD‑TTg dated June 13, 2025 on the establishment of Da Nang Free Trade Zone (FTZ). Together with other industrial parks, hi-tech parks and centralized information technology parks, Da Nang FTZ is expected to serve as a strategic catalyst creating fresh momentum for the city to leap forward in the new phase.
The announcement ceremony of Prime Minister’s decision on the establishment of Da Nang Free Trade Zone
Top choice for FTZ development
Da Nang was selected as the “base” for FTZ implementation as the city has essential and sufficient factors for developing a world-class, comprehensive FTZ. First, the geostrategic location positions Da Nang as the gateway to the Pacific Ocean from the East-West Economic Corridor, offering easy access to dynamic global markets. With a coastline stretching over 215 kilometers (following its administrative merger with Quang Nam), the city provides direct access to key -Asia-Europe and Asia-America shipping routes, which account for 40% of global maritime transport and 60% of total container shipping volume worldwide.
Lien Chieu International Seaport is planned as the main container transshipment hub, seamlessly integrated with Da Nang International Airport, expressways and national railroads. This creates a superior multimodal logistics capacity, enabling unlimited trade and investment opportunities within a 2,000 km radius, connecting most major Asian economic centers.
The Da Nang economic ecosystem is built on an integrated infrastructure network that ensures the smooth flow of goods, services and people. Although the FTZ’s seven functional zones are not adjacent, they are closely connected with one another and with other key areas of the city, forming a comprehensive and mutually supporting ecosystem. This connectivity includes Lien Chieu Port (the main port) and Chu Lai Port, which optimize maritime transport and logistics; Da Nang International Airport and Chu Lai International Airport, which ensure strong air connectivity; a system of expressways, ring roads and modern highways that link FTZ functional zones with industrial parks, hi-tech parks, Chu Lai Economic Zone, and the urban core; the national railway network and plans for an urban railway system; and inland waterways, which leverage riverine and coastal routes to support cargo transport and tourism. This multimodal transport network enhances the efficiency of supply chains and logistics, positioning Da Nang as a true international transshipment hub.
At the same time, Da Nang has a robust energy infrastructure, with power projects planned under Vietnam’s Power Development Plan VIII (PDP8). These projects not only ensure a stable energy supply for the city but also contribute to strengthening energy security across the central region. In terms of digital infrastructure, Da Nang serves as a major landing point for international submarine optic cable systems (such as SMW3, APG and ALC), thus significantly enhancing global connectivity. This ensures speed and reliability for digital economic activities and high-tech operations in the FTZ.
Another key advantage lies in Da Nang’s abundant human resources, with 28 universities and colleges, and 70 vocational training centers producing approximately 22,000 graduates annually, particularly in information technology, artificial intelligence and related fields. This ensures a strong talent pool to meet the evolving demands of the labor market.
Launchpad for growth
Da Nang FTZ is the first pilot free trade zone model in Vietnam, offering a unique opportunity to trial special incentive policies, streamlined administrative procedures and flexible governance mechanisms. It is set to attract high-quality FDI, enhance competitiveness with regional FTZs, and elevate Vietnam’s national brand on the global stage.
Spanning a total area of 1,881 ha, Da Nang FTZ is the country’s first free trade zone to integrate seaport and airport logistics functions with trade, services, export-oriented manufacturing and other supporting functions. Its three core functional zones in the FTZ will be distributed across seven non-contiguous areas, including the manufacturing and logistics area; the trade and services area; the digital, information technology and innovation-driven industrial area; and other functional areas.
Da Nang FTZ aims to become a regional economic hub and a strategic growth engine for central Vietnam and the whole country at large in the new development context. Its long-term vision is to evolve into a vital link in global and Asia-Pacific supply chains; serve as a center for manufacturing and international cargo transshipment; play a key role in advancing high-tech industry, innovation and digital transformation; and contribute actively to Da Nang’s economic restructuring following its territorial expansion, with a focus on sustainability and deeper international integration.
By prioritizing high-tech industries, innovation, and international trade, Da Nang FTZ will support the city’s transition from a traditional growth model reliant on capital and labor to one driven by knowledge and technology. This transformation will enable more efficient use of resources, increase exports of high-value products, develop logistics, export and import infrastructure, attract FDI and advanced technologies, and expand global trade networks. Moreover, with its tax incentives and simplified customs procedures, the FTZ is set to become a magnet for foreign investment in sectors such as high-tech, semiconductor manufacturing and premium services while generating thousands of jobs and improving the quality of life for local residents.
Enhanced trade and investment activities will help boost the GDP growth of Da Nang City and the central region, positioning Da Nang as a technology hub of Vietnam. In particular, with direct connectivity to Lien Chieu Port, Da Nang International Airport and the East-West Economic Corridor, the FTZ will reinforce the city's role as a vital link in global supply chains, a manufacturing, services, and innovation center, and a strategic growth pole in the context of deep international integration and global economic shifts.
Regarding operations, the Da Nang People’s Committee assigned the Danang Hi-Tech Park and Industrial Zones Authority to manage and operate the FTZ to ensure smooth and efficient functioning. According to Mr. Vu Quang Hung, Director of the Danang Hi-Tech Park and Industrial Zones Authority, the establishment of Da Nang FTZ is one of the city's top strategic decisions, creating momentum for economic growth and opening up new development space for the city. The FTZ will foster a favorable and attractive business environment, especially for foreign investors in prioritized sectors. It will also serve as a testing ground for mechanisms and policies to draw investment, finance, trade, tourism and high-quality services, become a magnet for modern logistics, manufacturing, trade and services, and promote a business-friendly and internationally integrated environment.
Additionally, the FTZ will help Da Nang attract strategic investors in high value-added sectors and promote trade, cooperation and connectivity, thus contributing to sustainable economic development, job creation and elevating Da Nang’s role and standing on the international arena.
Opening up a new development space
Indeed, the establishment of Da Nang FTZ marks a pioneering and groundbreaking move as this is the first time Vietnam implements such a model. The FTZ is expected to create a world-class development space capable of leading green growth, fostering innovation and attracting strategic investment. Importantly, the formation of Da Nang FTZ is fully aligned with the national strategy for developing key economic zones. With a long-term vision, the FTZ is set to become a hub for international merchandise manufacturing and transshipment as well as a driving force for innovation. In addition, the development of the FTZ in tandem with the prospective International Financial Center in Da Nang will help form a modern, smart and highly competitive economic ecosystem which is expected to generate widespread spillover effects and elevate Vietnam’s regional and global standing in an increasingly globalized world.
To make sure that the FTZ operates effectively, Da Nang City needs close coordination between government agencies, businesses and the local community. Careful planning, sound management and public-private partnerships will be key to ensuring sustainable success. Being fully aware of this, Da Nang has proactively conducted a thorough review and developed an action plan outlining a range of priority tasks to bring the FTZ into operation as soon as possible. The city will also continue to propose new streamlined and superior mechanisms and policies to higher authorities in support of the FTZ’s development.
Mr. Vu Quang Hung said that, in 2025, Da Nang is targeting an economic growth rate of over 10%. The Prime Minister’s approval of Da Nang FTZ has brought new life into the city’s economic landscape and opened up bright prospects for economic growth and investment attraction for the city in the coming time. Da Nang FTZ is expected to play a vital role in helping the city achieve the goals and targets set for the 2021-2025 term as well as lay a solid foundation for the next phase of development in the 2026-2030 term.
In the short term, the city will focus on carrying out solutions to enhance the effectiveness of its investment promotion activities, with a goal of attracting US$1 billion in investment capital. Da Nang will also consider expanding the FTZ’s boundaries following the integration with Quang Nam province, aiming to position Da Nang FTZ as a critical link in the global supply chain and a strategic growth engine for both the region and the nation.
“With such a pivotal role and significance, I call on investors, organizations, and individuals both in Vietnam and abroad to explore and invest in Da Nang FTZ. The city’s leadership is committed to offering the most favorable conditions for investors to successfully implement the FTZ and related projects,” he emphasized.
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Investment Incentives in Da Nang FTZ 1. Tenants with investment projects in the FTZ are eligible for land leases of up to 70 years. 2. Foreign investors establishing economic entities in Da Nang FTZ are not required to have an investment project and are exempt from the procedures for obtaining or amending an investment registration certificate prior to the establishment of their economic entities. 3. Incentive levels and land rent exemption/reduction periods for infrastructure construction and operation projects within the FTZ’s functional areas are the same as those applied to functional areas in economic zones. 4. Corporate income tax is exempted in the first four years and entitled to a 50% reduction for nine subsequent years and a preferential tax rate of 10% in 15 years. 5. Tax incentives for goods and services traded and supplied within the FTZ and between domestic markets and foreign entities within the FTZ are subject to laws on export tax, import tax, value-added tax and special consumption tax similar to those applied in non-tariff zones in economic zones. 6. Tax, land, credit and accounting incentives are similar to those provided for projects in economic zones with priority customs clearance. 7. Strategic investors will be granted preferential treatment in customs and tax procedures for goods imported and exported for their projects. Expenditure on research and development (R&D) activities will be eligible for a 150% tax-deductible rate when calculating corporate income tax. |
By Thanh Tung, Vietnam Business Forum
Vietnamese
