The report proposes that the logistics center be located in the southwestern area of the Long Thanh International Airport, covering an area of 136 hectares. This is part of the already cleared 5,000-hectare site, which was planned for aviation logistics functions back in 2011.
ACV suggests taking on the role of the main investor, developing synchronized and modern infrastructure, and establishing appropriate mechanisms and policies. This model also encourages linked investments from airlines and enterprises in various fields.
As planned, the aviation logistics center will consist of two main parts: hardware and software. The hardware includes modern infrastructure and logistics facilities, while the software component entails a duty-free zone with breakthrough policies on taxes and customs.
ACV considers this combination a crucial factor in transforming Long Thanh into a cargo transshipment hub for the Southeast Asian region. In the initial phase, the center will implement tax and customs control mechanisms in accordance with Vietnamese law, laying the foundation for its gradual development into an international free trade area upon approval by the competent authorities.
Long Thanh International Airport, Dong Nai. Photo: ACV.
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This will be Vietnam’s only aviation logistics center with a duty-free zone, directly linked to Long Thanh’s airport area, providing a “national gateway” advantage for integration into Asia’s logistics network and connecting major economic corridors such as ASEAN and APEC.
ACV forecasts that the center will contribute approximately 0.7% to the GDP of the Southeast region and 1-2% to the country’s export turnover annually, mainly from import-export, logistics, e-commerce, and auxiliary industries. Additionally, the center is expected to increase air import-export turnover by 15-20% each year and create 15,000 jobs (6,000 direct and 9,000 indirect).
The combination of logistics and a duty-free zone, along with tax and customs incentives, is expected to attract large corporations in the electronics, pharmaceuticals, e-commerce, logistics, and cold chain industries. Attracting foreign investors (FDI) is crucial for the center to become a leading logistics area, driving the development of an ecosystem of auxiliary, logistics, packaging, and trading businesses.
According to ACV, international experience shows that the duty-free zone model is an essential element in modern supply chains. It allows for the storage, processing, and re-export of goods without incurring typical tax obligations, providing a distinct competitive advantage. Changi International Airport (Singapore) and Incheon International Airport (South Korea) are prime examples of this successful model.
Illustrative image of the aviation logistics center at Long Thanh International Airport. Illustration: AI.
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Specifically, Changi has integrated its aviation logistics center with a free trade area since 1981, offering import tax and VAT exemptions for stored, transshipped, or re-exported goods. As a result, it has become one of the top ten largest cargo airports in the world. Similarly, Incheon, with its airport-attached free trade zone and deep-sea port, has become a leading integrated aviation logistics center in Asia.
The international successes mentioned above confirm that combining aviation logistics with a duty-free zone not only enhances national competitiveness but also serves as a magnet for foreign investment, boosting e-commerce and value-added services.
According to several opinions, ACV’s proposal to establish an aviation logistics center in Long Thanh is not just an infrastructure project but also a strategic vision to position Vietnam as a crucial link in the global supply chain, competing on equal footing with Singapore or Thailand.
Loc Lien
