Da Nang’s Initiative for a New Free Trade Zone

The Da Nang People’s Committee has reached out to the Ministry of Planning and Investment to evaluate a proposal for establishing a Free Trade Zone (FTZ) in Da Nang, pending approval from the Prime Minister.

This proposed FTZ is planned to encompass around 300 hectares of land reclaimed from the sea. While the exact sites for reclamation are not yet disclosed, the city officials are actively researching and assessing the best investment strategies and timelines.

During the recent press conference on December 20, several inquiries were made regarding the progression of the FTZ, particularly regarding its sea reclamation aspect. Da Nang’s government intends to launch the project on a test basis for five years, raising concerns about the effect on marine areas currently utilized by the public.

Tran Chi Cuong, the Vice Mayor of Da Nang, addressed these concerns by mentioning that the city is moving forward with the project in alignment with the National Assembly’s Resolution 136.

Da Nang is pioneering this FTZ initiative in Vietnam, and the proposed five-year trial period aims to gather insights that could refine the legal framework for developing similar zones in other areas, such as Ba Ria – Vung Tau, Hai Phong, and Ho Chi Minh City.

The Ministry of Planning and Investment is collaborating with other relevant ministries to coordinate the FTZ development plans.

Regarding the potential for sea expansion, Cuong indicated that local officials are exploring options to enhance available space through reclamation, after consultations with experts.

The idea for sea reclamation was incorporated into the plan following discussions with a variety of specialists, Cuong noted.

Should the proposal receive approval from higher authorities, Da Nang will intensify research efforts, consult further with experts, and facilitate workshops and other essential activities to advance the project, Cuong emphasized, highlighting the necessity for careful evaluation of developing an FTZ through land reclamation.

While the trial period is set for five years, Cuong assured that the development of the FTZ would not be abruptly halted once this duration concludes. According to Resolution 136, any unfinished components of the project will continue to be worked on beyond the trial phase.

“Our commitment is to create, maintain, develop, and effectively utilize the FTZ. Da Nang is committed to diligently pursuing this development plan; we will not simply implement it for five years and abandon the project if certain goals are unmet, leading to an unutilized area,” he clarified.