On June 22nd local time, the Deputy Prime Minister of Vietnam announced the official establishment of the Da Nang Free Trade Port (FTZ), which is Vietnam's first free trade port aimed at turning Da Nang into an important hub for the Asia Pacific and European supply chains.

It is reported that the planned total area of Da Nang Free Trade Port is 1881 hectares (approximately 28215 acres), covering multiple functional areas such as production and manufacturing, logistics and trade, and digital technology. The free trade port will rely on the annual throughput of 12 million TEUs at Lianzhao Port and Da Nang International Airport to build a three-dimensional transportation network of sea, land, and air.

In order to attract foreign investment, the Vietnamese government has introduced multiple preferential policies, including allowing foreign-funded enterprises to hold 100% control in key industries, implementing the policy of "full exemption for the first 4 years and half reduction for the second 9 years" of corporate income tax, and piloting the free flow of cross-border funds. These measures directly benchmark the successful experiences of China's Hainan Free Trade Port and Indonesia's Batam Free Trade Zone. In addition, Danang Free Trade Port will focus on the development of high-end manufacturing industries such as semiconductor packaging and green energy. At present, it has attracted international enterprises such as Foxconn Technology Group and Samsung Electronics, and plans to build a 5G smart park and industrial Internet platform.

In the field of logistics, Da Nang Free Trade Port is expected to shorten the transportation time of goods between China and Southeast Asia by more than 20% and reduce cross-border logistics costs by connecting the East West Economic Corridor. It is worth mentioning that Hainan Free Trade Port in China has signed a natural rubber procurement and direct air route cooperation agreement with Vietnam. In the future, both sides will deepen cooperation in cross-border logistics and agricultural product trade.

In addition, Da Nang Free Trade Port will also implement tax-free shopping and a 30 day visa free policy, and plans to cooperate with Hainan to develop cross-border tourism routes, with a target of receiving over 2 million international tourists annually. According to the plan, the Vietnamese government will complete the infrastructure construction of the first phase of the free trade port before 2027, striving to build it into a core hub for ASEAN digital trade by 2030. (This article is from the official website of Jian Dao www.seetao.com. Reproduction without permission is prohibited, otherwise it will be prosecuted. Please indicate Jian Dao website+original link when reprinting.) Jian Dao website Southeast Asia column editor/Yang Beihua