Catalyzing Growth: Haiphong’s New Free Trade Zone

In late June, a significant step toward economic advancement was taken as the National Assembly of Vietnam passed a resolution aimed at piloting special mechanisms for enhancing growth in Haiphong. This initiative is particularly noteworthy for the establishment of the city’s first Free Trade Zone (FTZ), set to revolutionize its economic landscape.

Innovative Regulatory and Fiscal Policies

This FTZ stands out due to its exceptional regulatory and fiscal policies, tailored for strategic sectors including high-tech manufacturing, logistics, trade, finance, tourism, services, and skilled workforce development. By offering a streamlined regulatory framework, the government is encouraging both domestic and foreign investments, creating a fertile ground for innovation and growth.

The FTZ will encompass various functional zones tailored to the distinct needs of different industries. These will cover manufacturing, port and logistics, logistics centers, and trade-service areas, all operating as bonded zones closely monitored by customs and state authorities. This structured approach ensures efficient management and fosters a conducive atmosphere for business operations.

Empowering Local Governance

A crucial aspect of the FTZ is the authority granted to Haiphong’s People’s Committee to determine and alter boundaries as needed, which allows it to better integrate with existing economic zones like the Dinh Vu – Cat Hai Economic Zone and the Southern Coastal Economic Zone. This flexibility is essential in adapting to evolving market demands and ensuring long-term sustainability.

The zone will be overseen by the Haiphong Economic Zones Management Authority, which is tasked with providing administrative support and facilitating efficient operations for businesses within the FTZ. This includes simplifying procedures that often hinder startups, making it an attractive proposition for entrepreneurs.

Investment Opportunities and Incentives

The FTZ places a special emphasis on attracting investments in high-tech industries. Fields such as semiconductor manufacturing, biotechnology, advanced materials, and automation are prioritized. Notably, foreign investors can establish entities within the FTZ without the requirement of an investment registration certificate, thus expediting the setup process.

Enhanced customs facilitation measures will streamline operations for companies operating in the FTZ, with exemptions from specialized inspections for goods meeting international standards. Additionally, a significant 10-year visa exemption and temporary residence permits will be available for experts, scientists, and their families, aiming to foster a dynamic, skilled workforce in the area.

Land allocation within the FTZ will be managed flexibly, with the government authorized to lease land without public auction. Furthermore, the initiative waives rental fees for land and water surface for most projects, further boosting the attractiveness of the FTZ for investors. The corporate income tax from prioritized sectors is expected to see reductions, marking it as a financially appealing venture.

Strategic Location and Infrastructure

Haiphong’s strategic positioning is one of its greatest assets. Nestled within the Dinh Vu – Cat Hai Economic Zone, the Nam Dinh Vu Industrial Park (IP) is uniquely positioned to leverage the benefits of the FTZ. Notably, the industrial park is the only coastal economic zone in Northern Vietnam to fully integrate the bonded zone, industrial park, seaport, and urban area model.

The park benefits from extensive multimodal connectivity, being located just 8 kilometers from Cat Bi International Airport and 15 kilometers from Lach Huyen Port. This proximity forms a cost-effective logistics network, allowing for swift transportation of goods. Its on-site seaport is capable of handling vessels up to 48,000 DWT, significantly reducing logistics costs and enhancing the efficiency of import-export activities for tenants.

Comprehensive Support for Investors

Nam Dinh Vu IP spans 1,329 hectares and is divided into specialized zones, including industrial land, seaport logistics, integrated industries, and oil and liquid cargo. The park is well-equipped with high-capacity infrastructure, including electricity and water systems, internal road networks, drainage, and an international-standard wastewater treatment facility.

Investors benefit from streamlined administrative procedures facilitated by a one-stop-shop model, covering everything from investment registration to land use certification. This comprehensive support system is designed to save time and cut operational costs, making it a pivotal destination for major corporations in industries such as electronics, chemicals, and logistics.

Commitment to Sustainability

The sustainable development model pursued by Nam Dinh Vu IP aligns well with modern investment standards, incorporating environmentally friendly practices into its operations. This commitment not only promotes responsible business practices but also enhances its attractiveness to potential investors who prioritize sustainability.

With the recent establishment of the FTZ, Nam Dinh Vu IP is set to elevate its role as a hub for high-quality investments, contributing significantly to Haiphong’s economic vigor. As the region continues to evolve, both local and international businesses are poised to benefit from the myriad opportunities presented by this transformative initiative.

In these dynamic times, Haiphong is reaffirming its status not merely as a city but as a strategic economic gateway to the future, driven by innovative policies and a robust infrastructure. The road ahead is bright with promise as Haiphong embraces its potential for unprecedented growth and development.