Northern Vietnam’s First Comprehensive Free Trade Zone to Launch This Year

The free trade zone is strategically located across three non-contiguous sites, seamlessly integrated with industrial manufacturing, port-logistics, and commercial-service functions.

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The Standing Committee of the Hai Phong City Party Committee has unanimously agreed to establish the Hai Phong Free Trade Zone during their meeting on September 23rd.

According to the proposal by the City People’s Committee Party Committee, the proposed free trade zone will cover approximately 6,292 hectares, located in the southern coastal economic zone of Hai Phong and the Dinh Vu – Cat Hai economic zone. This will be the first comprehensive free trade zone in the Northern region, expected to boost GRDP growth and restructure the industrial-logistics value chain in Hai Phong and the Northern region.

The free trade zone will be situated in three non-contiguous locations, each serving specific functions: industrial production, port-logistics, and trade-services.

Location 1: Southern Coastal Economic Zone, in Chan Hung and Hung Thang communes, covering around 2,923 hectares.

Location 2: Nam Dinh Vu Industrial and Duty-Free Zone, spanning 1,077 hectares.

Location 3: Cat Hai Island, within the Dinh Vu – Cat Hai Economic Zone, covering 2,292 hectares.

The project will be implemented in two phases. Phase 1 (until 2030) will focus on establishing the legal framework, investing in infrastructure, piloting special mechanisms, and attracting strategic investors. The city will pilot preferential policies in the Dinh Vu – Cat Hai Economic Zone and initiate investment in the southern coastal area.

By 2028, efforts will concentrate on attracting investment, approving functional sub-zones, and completing critical logistics infrastructure. Hai Phong aims to finalize technical infrastructure and administrative-customs management models by 2030.

Phase 2 (2030–2035) will involve completing infrastructure, expanding scale, implementing broad incentives, and fostering integration with the industrial-logistics ecosystem. This phase will enhance connectivity and deep integration between the Hai Phong Free Trade Zone and other industrial zones and clusters in the city, creating a complete production and logistics ecosystem to strengthen supply chains for key industries.

The city aims to attract high-tech, finance, and biotechnology projects. It will also develop high-quality support services such as R&D, consulting, and fintech to serve businesses within the zone. Additionally, Hai Phong will promote digital technology in port and logistics operations to optimize efficiency and reduce costs.

A corner of Hai Phong

Hai Phong is currently a vital coastal city and seaport, serving as the economic, industrial, and cultural hub of the Northern Coastal region.

In the first half of 2025, the city’s GRDP grew by an estimated 11.2% year-on-year, reaching nearly 210 trillion VND. This growth was primarily driven by industry-construction (up nearly 13%), services (around 10%), and agriculture-forestry-fisheries (4.3%). Following its merger with Hai Duong on July 1st, the city’s total area expanded to over 3,194 km², with a population exceeding 4.6 million, ranking second nationally with 51 port berths.

Secretary of the Hai Phong City Party Committee, Le Tien Chau, emphasized that establishing the free trade zone is a “strategic move” to create new growth opportunities and realize the goal of transforming Hai Phong into a modern seaport city, leading in industrialization, modernization, and digital transformation.

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