Danang – Vietnam ’s first Free Trade Zone: A New Boost for FDI to Central Vietnam

Danang, the heart of Central Vietnam and one of the country’s most dynamic coastal cities, officially became home to the Danang Free Trade Zone (FTZ) – Vietnam’s first-ever free trade zone – following the Prime Minister’s approval on June 13, 2025. This institutional breakthrough marks a key milestone in regional development and international investment attraction.

Vietnam’s First Free Trade Zone Approved

Under Decision No. 1142/QĐ-TTg, issued in accordance with Resolution 136/2024/QH15 on Danang’s special development mechanism, the Danang Free Trade Zone was formally approved. This is Vietnam’s first FTZ model, opening new opportunities for strategic investment and integrated, multi-sectoral growth. The launch ceremony took place on June 22, 2025, attended by Deputy Prime Minister Nguyễn Hòa Bình, National Assembly Vice Chairman Nguyễn Đức Hải, and representatives of major national and international corporations.

This morning, on June 27, 2025 the Hai Phong Free Trade Zone was officially approved for establishment, along with a series of special mechanisms and preferential policies. The zone will be established and its administrative boundaries adjusted under the authority of the Hai Phong People’s Committee. Vietnam will thus have an additional free trade zone, located in the second-largest city in the northern region.

Location and Structure of the Danang Free Trade Zone

The Danang Free Trade Zone spans nearly 1,881 hectares across seven non-contiguous sites in Liên Chiểu District and Hòa Vang District, including several zones adjacent to the deep-sea Liên Chiểu Port – a key international logistics hub under development.

Key functional divisions include:

• Manufacturing & Logistics: A modern multimodal logistics center linked with seaports, airports, and the East–West Economic Corridor.
• Trade & Services: International commerce, e-commerce, duty-free shopping, healthcare, education, tourism, and business services.
• High-Tech & Innovation: Zones for R&D, startups, AI, fintech, and close integration with Danang’s future International Financial Center.
• Support Utilities: One-stop customs, flexible foreign exchange, financial services, and integrated urban-commercial infrastructure.

Strategic Incentives & Infrastructure Advantages

The Danang Free Trade Zone enjoys a comprehensive incentive package under Resolution 136, including:

• Tax exemptions: 4 years corporate and personal income tax exemption, followed by 50% reduction for 9 additional years.
• Land incentives: Up to 70 years of free land use.
• Simplified customs: Priority clearance with one-stop procedures.
• Integrated infrastructure: Seamless connectivity to Liên Chiểu Port, Danang International Airport, expressways, and national railway.
• Comprehensive ecosystem: Advanced logistics, manufacturing, high-tech services, and international finance.

Following the upcoming merger with Quảng Nam Province (July 1, 2025), Danang’s area will expand to 11,859 km², with a population exceeding 3 million, making it Vietnam’s largest centrally governed city. This expansion enables the Danang Free Trade Zone to access broader regional resources and better connect with national and international markets.

Economic impact and long-term vision: The Danang Free Trade Zone is forecasted to contribute 12–13% of Danang’s GRDP by 2030, rising to 25–26% by 2050. Initial projections estimate over 21,000 new jobs during the early phase, increasing to 127,000 jobs by 2050. Danang’s ambition is to become a regional leader in logistics, international finance, and high-tech innovation, deeply integrated into global value chains.

Strong Commitments from Leading Investors

At the FTZ announcement ceremony, the Danang People’s Committee signed memoranda of understanding (MoUs) with prominent investors including Sun Group, BRG, The One Destination, Lien Thai Binh Duong, and Terne Holdings, committing to large-scale projects across Zones 5, 6, and 7. Additionally, four other investors were authorized to conduct feasibility studies for smart customs and advanced logistics systems within the Danang Free Trade Zone.

The operations, mechanisms, policies and management organization of the Da Nang Free Trade Zone are implemented according to the provisions of Resolution No. 136/2024/QH15 and relevant legal documents. This FTZ model is not only a groundbreaking institutional innovation but also a strategic foundation for Danang to evolve into a modern, green, and integrated economic, technological, and logistics center in the next decade.