Will a Commodity City Emerge in the Vicinity of Long Thanh Airport?

According to the Ministry of Construction, ACV’s proposal is a visionary idea aimed at leveraging the modern infrastructure and strategic advantages of Long Thanh Airport to attract investment and drive socio-economic development. However, the Ministry emphasizes that the establishment of a duty-free zone or free trade area must strictly adhere to legal regulations regarding procedures, scale, and authority.

The Ministry of Construction notes that ACV’s proposal is currently at the conceptual stage and requires thorough review, task specification, and detailed planning. ACV must clearly define its objectives based on aviation transport needs and the role of Long Thanh Airport to select an appropriate development model.

As per the master plan, 136 hectares in the southwestern area of Long Thanh Airport have been allocated for the development of a “Cargo City” – an aviation logistics hub. The Ministry of Construction requests ACV to clarify the planned activities in this area, study the conditions and procedures for establishing a duty-free zone, and consult with the Ministry of Finance, the direct managing authority for this sector.

The Ministry of Construction also urges ACV to collaborate with the People’s Committee of Dong Nai Province to agree on the scope, scale, and timeline, aligning with the province’s proposal for a free trade area near Long Thanh, connected to Phuoc An Port.

According to the Ministry of Construction, the free trade area model is a global development trend, allowing for the application of special mechanisms and policies to test effectiveness before wider implementation. Vietnam is currently in the pilot phase, with National Assembly resolutions on free trade areas in Da Nang and Hai Phong.

The Ministry of Finance is drafting a proposal for the Politburo to establish a legal framework. In this context, ACV must closely coordinate with both the Ministry of Finance and Dong Nai Province to define the role and function of the 136-hectare logistics center within the overall free trade area development plan.

Previously, ACV submitted a proposal to the Ministry of Construction and the Ministry of Finance, suggesting the establishment of an aviation logistics center combined with a duty-free zone, with a long-term vision of developing it into an international free trade area.

ACV aims to serve as the infrastructure investor while creating an open policy framework to attract airlines, logistics companies, cross-border e-commerce businesses, pharmaceutical and biotechnology corporations, express delivery services, and temporary import-re-export enterprises.

According to ACV, this is an urgent need for Vietnam to keep pace with global trends and enhance its competitive edge. In the initial phase, the center is expected to apply existing tax and customs control mechanisms, laying the foundation for transitioning into an international free trade area upon approval by the competent authorities.

ACV forecasts that, once fully operational, the Long Thanh aviation logistics center could contribute approximately 0.7% to the GDP of the Southeast region and 1-2% to the nation’s annual export turnover. The primary revenue sources will be from import-export activities, logistics, e-commerce, and supporting industries.

Additionally, the project is expected to increase air freight export-import turnover by 15-20% annually and create around 15,000 jobs, including 6,000 direct and 9,000 indirect jobs through spillover effects.