The Da Nang Free Trade Zone is built at seven locations. The photo shows the first location covering 100ha in Hoa Hiep Bac Ward, Lien Chieu District. (PHOTO: ANH DAO)

Along with the specialized and specific resolutions, creating favorable, open and outstanding policy mechanisms that the Party Central Committee, Government and National Assembly have given to Da Nang in recent times, a solid springboard has been created for the central city to develop and rise. The free trade zone decided by the gvernment is an initiative and proposal of the city, expected to connect the global economy, contributing to creating a “push” for Da Nang, the region and the whole country to develop.

In addition to the free trade zone, the Party Central Government has allowed Da Nang to implement many new economic initiatives such as buliding of international financial center and development of deep-water port with the goal of helping the city develop more prosperously in the coming time.

Resolution No. 136/2024/QH15 dated June 26, 2024 on the organization of urban government and piloting a number of specific mechanisms and policies for the city’s development and Decision No. 1142/QD-TTg of the Prime Minister dated June 13, 2025 have laid the foundation for the development of the Da Nang Free Trade Zone. Accordingly, the free trade zone, with a scale of 1,881 hectares, is set to become a regional hub for economy, logistics and technology in the future, located in seven non-contiguous locations, including functional areas: Production, logistics, trade-services, digital technology industry, information technology and innovation along with other specialised zone. A special policy framework will be applied to the zone, covering customs supervision, foreign exchange management, taxation, and business establishment, with the aim of promoting foreign trade, attracting foreign investment and accelerating international integration.

The Da Nang City People’s Committee presented a Memorandum of Understanding on investment in the Da Nang Free Trade Zone to a some strategic investors, at the Ceremony to announce the Decision on establishing the Da Nang Free Trade Zone on June 22. (Photo: ANH DAO)

Enterprises investing in the Da Nang Free Trade Zone enjoy 11 preferential mechanisms stipulated in Resolution No. 136/2024/QH15. In particular, they enjoy many outstanding preferential mechanisms; tax and land rent exemption equivalent to special economic zones; preferential customs regime; a four-year corporate income tax exemption followed by a 50% reduction for the subsequent nine years, and a five-year personal income tax exemption for experts in artificial intelligence (AI) and semiconductors. In addition, businesses will be eligible for land leases of up to 70 years.

The establishment of the Da Nang Free Trade Zone is considered a breakthrough step, a new institutional model with the expectation of creating a development space of international stature. This holds particular significance in the context of the upcoming official merger between the city and Quang Nam Province on June 30, which will open up new development space for Da Nang.

According to experts, currently, Vietnamese law does not have regulations on the establishment and operation of free trade zones. However, this is currently a popular economic model for nearly 150 countries around the world. Da Nang's "shortcut" to establish a free trade zone, opening up opportunities for Viet Nam to participate in the global trade supply chain, is one of the city’s bold breakthroughs.

Currently, Da Nang is continuing to propose 16 policies applicable to the free trade zone, submitted to the Government and the National Assembly for approval at the 9th session of the 15th National Assembly to create the best conditions, give the most power to Da Nang to operate and develop, and at the same time recruit, attract, and invite experts, scientists, etc. to work in the central hub with separate preferential policies.

The city aims to develop a free trade zone with the Da Nang International Financial Center to enhance Viet Nam's position through a modern, smart, highly competitive economic ecosystem. The free trade zone is expected to contribute 12–13% of the city’s GRDP, attract over 50,000 experts and workers, and help bring 20 million visitors to Da Nang thanks to its economic impact.

The municipal government is committed to effectively implementing specific policies and mechanisms issued by the Central Government, while proactively anticipating and resolving difficulties and challenges to develop the free trade zone in a smart, green and sustainable direction; calling for cooperation and consensus from the business community and people of the city. This is considered a key factor to successfully implement the city’s development goals, aimed at realising the vision of transforming Da Nang into a major, eco-friendly and smart urban centre, a hub for innovative start-ups, and a livable coastal city of regional Asian stature.