The Ultimate 1,700-Ha Project in Vietnam’s Most Livable City: Forging a Future with 127,000 Job Opportunities

The central city of Da Nang is currently seeking input from experts and business representatives on development plans for the Da Nang Free Trade Zone (DFTZ) – a model that has been approved for pilot establishment in Vietnam. This feedback will be instrumental in finalizing the proposal before it is submitted to the Ministry of Planning and Investment by the end of this year.

A Groundbreaking Free Trade Zone in Vietnam

During its 7th session, the 15th National Assembly passed a resolution on urban governance and piloting several mechanisms and special policies for the development of Da Nang. Notably, for the first time in the country, the National Assembly has permitted Da Nang to pilot the establishment of a free trade zone.

Immediately after the session, Mr. Nguyen Van Quang, Secretary of the Da Nang Party Committee, shared on the Government Portal that this is a significant policy with important implications. It is expected to provide a strong impetus for the city’s economic development and the region.

Mr. Quang emphasized that this pilot policy is a breakthrough, demonstrating a bold and proactive spirit. It aims to experiment with a completely new model, unprecedented in Vietnam.

According to Mr. Tran Chi Cuong, Vice Chairman of the Da Nang People’s Committee, the pilot establishment of the free trade zone will provide a solid legal foundation for the city to capitalize on its potential and advantages. He affirmed that the free trade zone would contribute to attracting FDI to Da Nang and the dynamic Central region, promoting socio-economic development in the area and the country. It will also diversify commercial and tourism activities, in line with the city’s central role.

Regarding the timeline, the Prime Minister has instructed Da Nang to complete the proposal and dossier for the free trade zone by December 2024. Subsequently, the dossier will be submitted to the Ministry of Planning and Investment for appraisal. In the fourth quarter of 2024 and the first quarter of 2025, the Ministry of Planning and Investment will present the decision on establishing the Da Nang Free Trade Zone to the Prime Minister.

For efficient management, Da Nang has proposed that the Prime Minister assign the management of the free trade zone to the Management Board of High-Tech Parks and Industrial Zones. The Ministry of Home Affairs is expected to consider and appraise this proposal this year.

What’s in the Da Nang Free Trade Zone Proposal?

At the recent forum, “Da Nang Free Trade Zone – A New Driving Force for the Development of Da Nang’s Logistics Industry,” Associate Professor Dr. Bui Quang Binh, representing the proposal’s consulting team, shared that this project is expected to become a driving force for economic development and expansion of Da Nang’s scale. It will also positively impact the key economic region of Central Vietnam.

The city plans to develop a dispersed free trade zone with nine main locations, designed as functional areas, including production, logistics, and commercial-service zones, spanning over 1,700 hectares.

Production Zone: North of the Cu De River (400 hectares) and Da Nang High-Tech Park with its expansion (559 hectares)

Commercial-Service Zone: Foot of Ba Na Mountain (90 hectares), along the Ba Na – Suoi Mo road (154 hectares and 53 hectares)

Logistics Zone: Hoa Nhon Industrial Park (200 hectares), southwest of Da Nang airport (80 hectares), behind Lien Chieu seaport (100 hectares), and south of Hai Van Pass (100 hectares)

Additionally, Da Nang will consider adding a landfilled free trade zone along the Nguyen Tat Thanh seaside road, with an expected area of 420 hectares.

By 2030, the free trade zone is expected to contribute directly to 1-2% of Da Nang’s GRDP and attract about 21,000 workers. By 2040, the contribution is projected to increase to 9.5% of GRDP and provide jobs for 90,000 people. Looking further ahead to 2050, the zone is anticipated to account for 17.9% of GRDP and employ 127,000 workers.

According to Dr. Bui Quang Binh, the Da Nang Free Trade Zone will be developed following the “zone within a zone” model, integrating multiple functions such as logistics for seaports and airports, commerce, services, export processing, and auxiliary activities. The management mechanism will employ a single-window, single-identification system, ensuring close linkage between sub-zones, industries, and regions to create a synergistic effect.

The project will focus on developing four priority sectors: logistics, manufacturing, trade, and services, along with innovation. The free trade zone is envisioned to become a high-quality multimodal transport, service, and warehouse center.

Manufacturing in the zone will target high-tech fields such as electronics, aircraft manufacturing, aviation support, advanced mechanics, pharmaceuticals, biotechnology, and especially semiconductor assembly, testing, and packaging.

The service center will integrate tourism and commercial activities, including duty-free retail, medical tourism, casinos, hotels, food, and MICE tourism. It will also promote research and innovation in priority areas such as AI and semiconductors.