The Ministry of Construction has provided feedback on the proposal for the establishment of a duty-free zone and an air logistics center at Long Thanh Airport, submitted by the Airports Corporation of Vietnam (ACV).
Need for Specific Details
The Ministry of Construction commends ACV’s initiative to leverage Long Thanh’s strategic advantages to attract investment and drive socio-economic development. However, the ministry emphasizes that the creation of a duty-free zone or free trade area must adhere to legal procedures, scale requirements, and designated authorities as stipulated by law.
The ministry urges ACV to base its proposal on the types of air cargo, transportation needs, and Long Thanh Airport’s role to clearly define objectives and suggest an appropriate development model. Additionally, ACV should review and refine the proposal, specifying tasks, formulating implementation plans, and outlining timelines.
Regarding the air logistics center, the Ministry of Construction highlights that both the national airport system plan and Long Thanh Airport’s master plan designate it as a future international air cargo hub. Land has already been allocated for the development of a logistics center for cargo transportation.
Furthermore, the Prime Minister has assigned ACV to invest in cargo warehouses 1-4, while the Ministry of Construction is responsible for warehouses 5-8. Vietnam Airlines has been selected as the investor for these warehouses. Consequently, ACV’s proposal may impact Vietnam Airlines’ aviation service complex investment plan at Long Thanh. The ministry recommends ACV collaborate with Vietnam Airlines to ensure compliance with directives from the Politburo and the Prime Minister.
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For the duty-free zone, the Ministry of Construction notes that licensing procedures fall under the jurisdiction of the Ministry of Finance. Therefore, ACV should seek guidance and report to this agency.
The ministry also points out that the proposal identifies a 136-hectare area as both a logistics center and a duty-free zone but fails to clarify whether the infrastructure scope aligns with Long Thanh’s master plan. Moreover, the proposal lacks analysis and specifics on required investments to achieve its goals. ACV is advised to conduct further research and consider reallocating infrastructure within Long Thanh’s master plan for optimal utilization.
Regarding resources, the Ministry of Construction observes that the proposal only provides a general analysis of objectives and outcomes, without detailing investment plans, scales, or funding strategies.
“Therefore, ACV should develop phased investment plans, identifying implementing agencies, investment methods, funding sources, and capital balancing capabilities,” the Ministry of Construction emphasizes.
Vision for a Free Trade Area
The Ministry of Construction also notes that free trade areas are innovative models adopted by many countries to pilot advanced mechanisms and policies within defined spaces before broader implementation. These areas are typically located in strategic positions with advantages in trade, production costs, workforce, logistics, and investment environments.
In Vietnam, the National Assembly has approved pilot free trade areas in Da Nang and Hai Phong. The Ministry of Finance is currently finalizing a free trade area proposal to submit to the Politburo, which will serve as the basis for legal regulations.
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In Dong Nai Province, the Provincial People’s Committee is researching and proposing the establishment of a free trade area near Long Thanh, connected to Phuoc An Port. However, ACV’s proposal does not address synchronization with this plan.
The Ministry of Construction requests ACV to collaborate with the Dong Nai Provincial People’s Committee to determine the scope, scale, and timeline for the free trade area’s development. Additionally, ACV should coordinate with the Ministry of Finance to clarify conditions, procedures, and decision-making authority for its establishment.
Expectations for Long Thanh Logistics Center
ACV representatives stated that the air logistics center combined with a duty-free zone is planned for the southwestern area of Long Thanh Airport, covering 136 hectares of the 5,000-hectare site cleared since 2011 for logistics purposes.
The center consists of two components: logistics infrastructure (warehouses, facilities) and a duty-free zone (featuring breakthrough tax and customs policies). ACV expects this to be pivotal in establishing Long Thanh as ASEAN’s air cargo hub.
Once fully operational, the center is projected to contribute 0.7% to the Southeast region’s GDP and 1-2% to the nation’s annual export turnover. It is also expected to increase air cargo export-import value by 15-20% annually and create approximately 15,000 jobs.
The total investment is estimated at around 450 million USD (equivalent to 11.8 trillion VND). ACV proposes to be the project’s lead investor, developing infrastructure and formulating policies for submission to competent authorities. Airlines and businesses from various sectors are also encouraged to participate and co-invest alongside ACV.
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Progress of Long Thanh Airport Construction Long Thanh Airport is a national key project spanning 5,000 hectares with a total investment of nearly 337 trillion VND. To date, runway 1 and the taxiway system are complete; the passenger terminal’s roof is largely finished, with glass installation underway in September; the air traffic control tower and administrative buildings are also nearing completion. The construction site currently employs nearly 14,000 engineers and workers, along with approximately 3,000 pieces of equipment, across hundreds of work fronts, aiming for substantial completion by late 2025. |
VIẾT LONG
– 06:00 30/09/2025
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