One of the highlights of Resolution No. 136/2024/QH15 of the National Assembly on organizing urban government and piloting a number of specific mechanisms and policies for the development of Da Nang is to allow the central coastal city to pilot the establishment of a free trade zone. This is a model that many countries in the world have succeeded in, but is applied for the first time in Viet Nam. The free trade zone model promises to be a new driving force for Da Nang to make a breakthrough.

The soon-to-be-developed Da Nang Free Trade Zone will integrate the functions of seaport and airport logistics with commercial activities, services, industrial processing and other supporting functions. Photo: P.V

Breakthrough expectations

The Politburo’s Resolution No. 43-NQ/TW on the construction and development of Da Nang to 2030, with a vision to 2045, aims to build the city into one of the major socio-economic centres of the country and Southeast Asia.

To achieve this goal, the city has closely coordinated with relevant ministries, branches and agencies to propose the National Assembly to consider and approve Resolution No. 136/2024/QH15 with 30 policies by mid-2024. Two of these policies promise to boost the transformation of the growth model of the city. They are the policy for the development of semiconductors and artificial intelligence (AI) industries, and the pilot policy for the establishment of the Da Nang Free Trade Zone associated with Lien Chieu Port.

Mrs. Le Thi Kim Phuong, Director of the municipal Department of Industry and Trade, underlined the vital role of the Da Nang Free Trade Zone in creating a new driving force and opening up new development space for the city.

According to forecasts, the Da Nang Free Trade Zone can contribute 8-9% to the city's GRDP (Gross regional domestic product) by 2030 and 25% by 2050, contributing to boosting the city's annual growth by 1.7 and 2.4 percentage points in the 2026-2030 period and the entire 2031-2050 period respectively.

At the same time, the Da Nang Free Trade Zone will attract a large workforce and experts in high value-added sectors, particularly about 41,000 workers by 2030, and about 137,000 by 2050.

The Da Nang Free Trade Zone is the first of its kind to integrate the functions of seaport and airport logistics with commercial, service and export processing industries and other supporting functions. The area of ​​the zone is about 2,017 hectares when the infrastructure is completed and the functional areas are synchronized. The zone will be located in 10 non-adjacent locations connected to Lien Chieu Seaport and Da Nang International Airport.

The functional areas in the free trade zone will include 10 non-adjacent locations belonging to 4 main functional areas: logistics; logistics and production; production; and trade services and digital economy, information technology and innovation.

The Da Nang Free Trade Zone will prioritise the production of high-value export goods (advanced electronics; aircraft; aviation components; pharmaceuticals; biotechnology; and assembly, testing and packaging of semiconductor chips), as well as the development of logistics, trade and services, regional innovation centres, and support services including the connection between the free trade zone and the regional financial centre.

The city organised the "Da Nang Free Trade Zone - New driving force for logistics industry development in the city" forum. Photo: M.QUE

Attracting strategic investors

Resolution No. 136/2024/QH15 officially took effect in January 1, 2025. The city has already completed the dossier requesting the Prime Minister to issue a decision to establish the Free Trade Zone and has submitted it to the Ministry of Planning and Investment for consideration. The city is also preparing a project to connect infrastructure for free trade subzones with public investment capital.

After the project is approved by the Prime Minister, the city will review the proposed locations of the Da Nang Free Trade Zone in order to develop a specific implementation roadmap, and assess in more detail the level of land fund readiness to propose the most appropriate, convenient and fastest method of organizing investor selection.

The city will also start the construction of technical infrastructure systems serving functional areas, and traffic connection infrastructure, according to the approved project. It will propose to mobilize central capital in combination with local budgets to carry out investment preparation procedures.

Regarding operation management, the municipal People's Committee has assigned the Authority of High-Tech Park and Industrial Zones - the unit directly responsible for operation management - to proactively coordinate with relevant departments, branches and sectors to immediately deploy steps to prepare administrative procedures and apparatus to manage and operate the Da Nang Free Trade Zone smoothly and effectively, ensuring the most favourable conditions for investors.

Mr. Vu Quang Hung, Head of the Authority of the High-Tech Park and Industrial Zones, said that the management board is assigned to implement a "one-stop shop" for administrative procedures such as granting investment, business, planning and construction licences. This is an important step to improve management efficiency, shorten time and reduce procedures for businesses. The Authority will establish a "one-stop shop" centre or department to receive and handle documents in the Free Trade Zone, where businesses can carry out all related procedures without going through many management agencies.

Additionally, a simple and quick document handling process will be developed, aimed at shortening the licensing time, especially for investment projects in the semiconductors and high-tech industries, in the direction of shifting from "pre-inspection" to "post-inspection". Accordingly, it is expected to shorten the project implementation time by about 260 days, issue investment registration certificates within 15 days, and prioritize quick approval of procedures for priority industries.

Notably, administrative procedures will focus on integrating information technology to process electronic records, making it easy and transparent to submit and track records. Accordingly, businesses can submit and track records online.

According to Mrs. Le Thi Kim Phuong, the soon-to-be-developed Da Nang Free Trade Zone will include preferential mechanisms and policies stipulated in Resolution No. 136/2024/QH15 for infrastructure construction investors and secondary investors (investors who lease land from infrastructure investors). Currently, the city is reviewing and proposing additional mechanisms and policies under the authority of the Government and the National Assembly on the basis of comparison with international free trade zones. The purpose is to improve competitiveness and attract investment for the zone, ensuring that the model can operate smoothly.

From now until 2029, the city will concentrate on attracting more strategic investors involving infrastructure development, and secondary investors, in a bid to accelerate the construction and operation of the free trade zone.

Heed will be on issuing policies under the authority of the municipal People's Council and integrating mechanisms and policies under the authority of the Prime Minister into the decision for the sake of establishing the Da Nang Free Trade Zone, ensuring the simplification of administrative procedures and creating maximum conditions for investors.

Furthermore, the city will implement policies with great impact and spillover effects, as well as review and submit them to the National Assembly for promulgation of new policies for the Da Nang Free Trade Zone.

After 2029, the city will continue to research, expand and upgrade incentive mechanisms and policies under the authority of the National Assembly to attract secondary investors in key sectors. Efforts will be made to adjust and supplement incentives based on regional and international situations, ensuring the long-term maintenance of the competitive advantage of Da Nang Free Trade Zone.

Reporting by MAI QUE - Translating by M.DUNG