Prime Minister’s Approval for Danang Free Trade Zone
By Thanh Van, Minh Hue
Mon, June 16, 2025 | 9:25 pm GMT+7
Prime Minister Pham Minh Chinh has officially approved the establishment of the Danang Free Trade Zone (FTZ), a significant development aimed at enhancing the economic landscape of central Vietnam. Spanning approximately 1,881 hectares, the FTZ will be developed across seven non-contiguous locations, strategically selected to maximize its impact.
Overview of the Free Trade Zone
The Danang FTZ will include various functional zones tailored to foster growth in sectors such as manufacturing, logistics, trade, services, and digital technology. The government aims to create an integrated environment where innovation and commercial activities can thrive. This zone is not merely a collection of buildings; it is a vision for a modern economic framework that positions Danang as a regional powerhouse.
Designated Areas and Their Functions
The designated non-contiguous locations cover a diverse range of land areas:
- Hoa Hiep Bac Ward (Lien Chieu District): 100 hectares and 77 hectares
- Hoa Lien Commune (Hoa Vang District): 500 hectares
- Hoa Ninh Commune (Hoa Vang District): 559 hectares and 90 hectares
- Hoa Nhon and Hoa Phu Communes (Hoa Vang District): 154 hectares and 401 hectares
These areas have been chosen for their strategic positioning and potential for connectivity, paving the way for robust infrastructural and economic developments.
Infrastructure and Economic Objectives
The infrastructure development within the FTZ is planned to be modern and synchronized, focusing on manufacturing, trade, logistics, technology, and high-quality services. The aim is to transform the FTZ into a regional economic hub and a key growth engine for both central Vietnam and the entire country, adapting to contemporary developmental needs.
In the long run, the FTZ is expected to emerge as a critical link within global and Asia-Pacific supply chains. Its proximity to Lien Chieu Port and Danang International Airport further enhances its potential as a manufacturing center and international goods transshipment hub.
Driving Technological and Economic Advancements
The FTZ is also poised to bolster advancements in high-tech industries and digital transformation. The initiative supports Danang’s ongoing economic restructuring efforts, particularly following its merger with Quang Nam province, promoting sustainable development and deep integration into global markets.
Integration with Financial and Economic Ecosystems
The development will align with plans for the Danang International Financial Center, fostering a modern, smart, and competitive economic ecosystem. This integration is set to elevate Vietnam’s standing in the global context, positioning the country as a vital player in the ever-evolving landscape of international trade and finance.
Functional Areas and Future Prospects
Each functional area within the FTZ has been carefully designed to cater to specific economic needs:
-
Manufacturing and Logistics: This area is to become a modern hub that leverages technical infrastructure and digital tools, enhancing productivity while ensuring seamless connections with regional and global supply chains.
-
Trade and Services: Shaped into an international-standard environment, this zone will host duty-free retail, tourism, accommodation, and a host of business support services. The focus is on creating a knowledge economy that promotes regional collaboration and innovation.
-
Digital Technology and Innovation: This area will attract tech enterprises, research institutions, and innovation initiatives. The goal is to drive advancements in emerging technologies such as artificial intelligence, big data, and cloud computing, thereby enhancing both regional and national competitiveness in the global digital economy.
The Danang Free Trade Zone represents a transformative opportunity, aiming to reshape the economic landscape of the region and the nation. The focus on diverse sectors ensures that it is not just a space for commerce, but a comprehensive hub for innovation and development.