Vietnam’s National Assembly has given the green light for the development of a free trade zone near the Lien Chieu Seaport in Da Nang. This strategic initiative aims to bolster the region’s economic growth by establishing a comprehensive zone that includes production areas, logistics centers, commercial and service areas, and other functional zones designed to optimize trade and investment.
The Da Nang Free Trade Zone is poised to become a significant economic hub, facilitating the movement and trade of goods between the trade zone and external zones. The activities within this zone will be governed by export and import regulations as prescribed by Vietnamese law, ensuring that all customs and tax obligations are met. This regulatory framework is intended to streamline operations and create a conducive environment for businesses to thrive.
To attract a wide array of investors, the free trade zone will offer several investment policies designed to make it an appealing destination. Land leased within this zone will be considered part of investment projects in economic zones, allowing investors to benefit from various tax incentives and land rent reductions. These financial benefits are expected to draw significant interest from both domestic and international investors, providing a robust foundation for economic activity in the region.
Enterprises with investment projects in the Da Nang Free Trade Zone will also enjoy preferential customs treatment for their export and import activities. This preferential treatment is contingent on meeting specific conditions laid out by law, ensuring that businesses operate within the legal framework while enjoying expedited customs processes. This will not only facilitate smoother trade operations but also enhance the competitiveness of businesses operating within the zone.
National Assembly Approves Da Nang Free Trade Zone Initiative
The development of the Da Nang Free Trade Zone is part of a broader strategy to capitalize on the strategic location of Da Nang, which is one of the few places in Vietnam with both an international seaport and an airport. This geographical advantage is expected to play a crucial role in the success of the free trade zone, offering unparalleled connectivity for trade and logistics.
The Lien Chieu Seaport, which is currently under construction, is set to become a key component of this initiative. Once completed, the port will alleviate pressure on the existing Tien Sa Port and significantly enhance the region’s cargo handling capacity. The port will span 450 hectares and feature eight container berths for ships ranging from 30,000 to 200,000 DWT, six general berths for ships between 30,000 and 100,000 DWT, a 1,200-meter inland waterway dock, and six specialized wharves for handling liquid and gas cargoes. Its annual cargo handling capacity is projected to reach 50 million tons by 2050, underscoring its importance in regional logistics and trade.
The port project, with an estimated cost of over VND3.4 trillion (US$133.4 million), will be funded primarily by the government, with around VND3 trillion provided by state funds and the remaining amount sourced from the city. This significant investment highlights the strategic importance of the port and the free trade zone in driving economic growth and development.
The establishment of the Da Nang Free Trade Zone is expected to have far-reaching implications for Vietnam’s economic landscape. By creating a favorable environment for high-quality investments and leveraging the logistical advantages of the Lien Chieu Seaport, the government aims to enhance the region’s attractiveness as a destination for business and trade. This initiative is aligned with Vietnam’s broader economic goals of enhancing global integration and competitiveness.
The free trade zone will not only benefit businesses but also contribute to the overall economic development of Da Nang and the surrounding regions. The influx of investments and the establishment of new enterprises are expected to generate employment opportunities, boost local economies, and stimulate industrial growth. The government’s commitment to providing a supportive regulatory framework and financial incentives will be crucial in realizing the full potential of the free trade zone.
As the development progresses, the National Assembly has tasked the government with issuing specific regulations for the management and development of the zone. Any issues that arise beyond the government’s authority will be reported to the National Assembly Standing Committee for a decision, ensuring a structured and effective governance approach.
In summary, the approval of the Da Nang Free Trade Zone near Lien Chieu Seaport represents a significant milestone in Vietnam’s economic development strategy. By fostering an environment conducive to high-quality investments and leveraging the strategic advantages of the region, this initiative is set to drive economic growth, enhance trade connectivity, and position Da Nang as a key player in the global economic landscape.
