Hai Phong, a port city in Northern Vietnam, outlines a sustainable development strategy for its free trade zone.

The establishment of the Hai Phong Free Trade Zone (FTZ) marks a significant strategic direction for enhancing Vietnam’s role on the global stage, particularly for Hai Phong city. This ambitious initiative was highlighted at a recent conference in the northern port city, shedding light on the potential impacts and opportunities the FTZ presents for both local and international investors.

Hai Phong FTZ: Unprecedented Incentives

Following the recent National Assembly approval for the FTZ’s establishment, Hai Phong is poised to enter a new era characterized by trade liberalization and deep international integration. The FTZ encompasses an impressive area of 6,292 hectares across three strategically positioned sites, interlinked with vital economic zones: the Dinh Vu-Cat Hai Economic Zone and the Southern Coastal Economic Zone.

According to industry experts, the Hai Phong FTZ offers unprecedented incentives. Rather than merely being a new operational model, it is positioned as a strategic pathway to elevate Vietnam’s status within regional and global value chains.

Le Trung Kien, Vice Chairman of the Hai Phong People’s Committee, pointed out that this is the first FTZ model in northern Vietnam, developed with insights from successful international practices, while also being tailored to Hai Phong’s unique advantages.

The FTZ aims to create an open and flexible legal framework that facilitates seamless movement of goods, addressing emerging challenges in the global supply chain for enterprises.

Pham Van Thep, head of the Hai Phong Economic Zone Authority, emphasized that the FTZ’s layout has been strategically planned to maximize existing infrastructure and transport advantages, creating a highly adaptable ecosystem.

Bruno Jaspaert, chairman of EuroCham Vietnam, highlighted that Hai Phong possesses essential advantages to pioneer this new-generation FTZ model—featuring a deep-water port, connectivity through expressways, rail links to Europe and China, and its integration into global supply chains. He noted that existing investors have already contributed $28 billion, with more ready to invest if the FTZ aligns with EU standards.

Sustainable Development Solutions for Hai Phong FTZ

Globally, special economic zones, including free trade zones, exceed 7,000 in operation and continue to evolve. The FTZ model is increasingly integrating industrial manufacturing with urban development and services, finance, high technology, and innovation.

Nguyen Anh Tuan, deputy director general of the Foreign Investment Agency under the Ministry of Finance, suggested focusing on attracting next-generation foreign direct investment (FDI) to secure sustainable growth across three primary pillars aligned with national objectives.

First, priority should be given to projects involving semiconductors, AI, automation, R&D, and high-tech supporting industries to facilitate structural transformation.

Second, leveraging port facilities is crucial for attracting investments in logistics services and developing smart ports for international distribution and transshipment hubs. Lastly, promoting projects focused on resource efficiency and carbon neutrality will bolster sustainable growth.

Bruno Jaspaert echoed the call for a robust FTZ framework, recommending the creation of a modern, transparent information portal and governance model while applying EU-style incentives.

He also advocated for initiatives like green-certified warehousing and clean energy zones, alongside the integration of AI and IoT in logistics and infrastructure planning to enhance resilience against climate change.

Koen Soenens, general sales and marketing director at the Deep C Industrial Zones, emphasized that to attract potential investors, Hai Phong must deliver stability, simplified customs, and state-of-the-art logistics solutions equipped with modern technology.

A Promise for the Future

The establishment of the Hai Phong FTZ represents a transformative promise for the city, positioning it as a key industrial and logistics hub in northern Vietnam. With effective implementation and collaboration, along with stability in policies, Hai Phong is set to become an attractive destination for global investors.

Nguyen Thanh Phuong, CEO of Sao Do Group, proposed the introduction of incentive mechanisms aimed at FDI projects committed to localizing production, coupled with the establishment of a supporting industry development fund. Furthermore, a Supplier Development Program could significantly enhance the capabilities of local supporting industries.

Vice Chairman Le Trung Kien reiterated Hai Phong’s commitment to creating an investment climate characterized by streamlined procedures and strong protections for investors. The city pledges to be adaptable and proactive in supporting business growth.

As one of northern Vietnam’s leading manufacturing and logistics hubs, especially after merging with Hai Duong province, Hai Phong is home to over 15 major industrial parks and a burgeoning deep-sea port system. Annual cargo throughput is projected to grow significantly, further enhancing its position as a competitive FDI destination. As of now, the city stands among the top three in attracting FDI nationwide, with total investments exceeding $45.6 billion. The new Free Trade Zone is anticipated to be a dynamic growth engine, driving further development not just for Hai Phong but for the entire Red River Delta region.

Recognized as one of Vietnam’s six centrally governed cities alongside Hanoi and Ho Chi Minh City, Hai Phong is set to play a pivotal role in the nation’s economic landscape.