Da Nang is the first locality in the country to pilot the establishment of a Free Trade Zone. Photo: Da Nang Customs

Free Trade Zone: A boost for Da Nang

According to Resolution 136/2024/QH15, the National Assembly has authorized Da Nang to pilot specific mechanisms and policies on financial management, public budgeting, investment, urban planning, and environmental management. These policies are designed to attract strategic investors by outlining priority sectors and projects for the city.

The establishment of the Da Nang FTZ, closely linked with Lien Chieu Seaport, is seen as a lever to attract high-quality investments in finance, commerce, tourism, and services. Da Nang is the first locality in the country authorized to pilot a free trade zone.

The draft proposal, currently under preliminary review by Da Nang’s Department of Industry and Trade, is being continuously researched and refined by experts and consultants.

The FTZ aims to position Da Nang as an attractive, internationally aligned investment hub with favorable policies to attract top-tier investors, especially in strategic infrastructure sectors. The city envisions a green, cost-effective logistics infrastructure to enhance its competitiveness as a prime destination along the Pacific-Indian Ocean transport corridor.

Additionally, the FTZ is expected to fuel Da Nang’s GRDP growth, create high-income jobs, and establish an international-standard working environment.

The Department of Industry and Trade stated that the FTZ will ultimately cover around 2,000 hectares, with infrastructure built in stages to align with demand for production and business activities across functional areas.

By 2030, the functional areas are expected to occupy 300–500 hectares, expanding to 1,000 hectares by 2035, 1,700 hectares by 2040, and 2,500 hectares by 2050.

Proactive Customs involvement

Da Nang Customs Director Quach Dang Hoa noted that Da Nang is the first locality in Vietnam selected for an FTZ pilot. However, there is currently no compatible legal framework for state customs management within such a zone.

Current customs laws regulate activities within economic zones, export processing zones, and bonded warehouses but do not cover FTZs.

Although FTZs share similarities with economic and bonded zones, their operations are expected to be more open, autonomous, and investor-friendly. Since the issuance of Resolution 136/2024/QH15, Da Nang Customs has established a task force to research and prepare customs management measures for the FTZ. The task force is responsible for drafting, reviewing, and coordinating proposals to ensure timely progress on the FTZ initiative, following the directives of Da Nang’s People’s Committee and related regulations from the Ministry of Finance and the General Department of Vietnam Customs.

According to Da Nang Customs Department, the research group has actively consulted with the Department of Industry and Trade on customs management matters relevant to the FTZ’s development. At the same time, it also joined working groups on implementation of establishing Da Nang free trade zone; planning group on developing the scheme on establishing Da Nang Free Trade Zone of the city.

Additionally, Da Nang Customs collaborated with experts from Boston Consulting Group (BCG) to discuss cross-border import-export activities, customs procedures, inspection processes for goods entering and exiting the FTZ, and the implications of the FTZ on the customs department’s organizational structure, personnel, facilities, and centralized inspection points.

Da Nang Customs has actively contributed feedback on special policies to enhance customs management, monitoring, and enforcement for FTZ activities.

The department recently held a workshop to discuss current state management of customs of Scheme on establishing Da Nang Free Trade Zone.

At the workshop, Da Nang Customs outlined the current customs management framework, suggested improvements to be incorporated into the FTZ proposal, and recommended specific incentives and policies tailored for the FTZ, including prioritized industries, target groups, and preferential tariffs.

The department also proposed that local authorities involve Da Nang Customs in all phases of FTZ planning and development, from zoning and infrastructure design to IT and inspection equipment investments, ensuring sufficient resources for effective customs management within the FTZ.