The Prime Minister's Decision on the establishment of Đà Nẵng Free Trade Zone (FTZ), which was officially announced on June 21, on 1,881 hectares, would help contribute 17.9 per cent to Đà Nẵng City’s gross regional domestic product (GRDP) and create 127,000 jobs by 2040.
Vũ Quang Hùng, head of Đà Nẵng's Special Economic Zone Authority, joins an investment promotion event of the Đà Nẵng Free Trade Zone. Photo courtesy of Đà Nẵng's Special Economic Zone Authority
ĐÀ NẴNG – The Prime Minister's Decision on the establishment of the Đà Nẵng Free Trade Zone (FTZ), which was officially announced on June 21 for 1,881 hectares, is expected to contribute 17.9 per cent to Đà Nẵng City’s gross regional domestic product (GRDP) and create 127,000 jobs by 2040.
Vũ Quang Hùng, Head of Đà Nẵng's Special Economic Zone Authority (including the Hi-Tech Park and Industrial Zones Authority, IT Park, six other industrial parks, four centralised information technology zones, the Free Trade Zone), shared his vision for the prosperous future growth of the FTZ with Việt Nam News.
How do you envision the future of the FTZ?
The Đà Nẵng FTZ is designed as a centre of key high-tech industries, high value-added industries including ‘green’ tech, biology, pharmaceutical chemistry, renewable energy, aerospace, digital technology, semiconductors and AI, big data, cloud computing, Internet of Things (IoT), and blockchain. These industries will attract investment from global leading technological groups and high-tech firms seeking a stable investment environment and the well-oriented and expanded economy of new Đà Nẵng City (a merger of Đà Nẵng and Quảng Nam Province).
The deep-sea port of Liên Chiểu is under construction in Đà Nẵng City. The port is a key infrastructure project of the Đà Nẵng Free Trade Zone. VNS Photo Công Thành
In terms of economic growth, the Đà Nẵng FTZ expects to be a key strategic economic growth engine of the country. The development of high-tech industries and services in the FTZ will promote sustainable growth and ‘smart’ economic restructuring from a merged Đà Nẵng and Quảng Nam in new Đà Nẵng City.
It will create a surge in income for the state budget from taxes, fees, duty-free trade, and business supportive services from key investors.
The establishment of the Đà Nẵng FTZ also aims to serve as an important link in global supply chains and in the Asia Pacific region, a centre of production and an international hub for international freight transit.
The FTZ will develop infrastructure projects such as Liên Chiểu deep-sea port, the East-West Economic Corridor (that links Thailand, Myanmar, Laos and Việt Nam), Chu Lai sea port and airport system, the Open Economic Zone of Chu Lai, and several key industrial zones in Quảng Nam, turning new Đà Nẵng City into a key centre of multi-modal logistics, digital economy, exports and an important position in the global value chain.
The FTZ is a key component in Việt Nam’s broader economic restructuring strategy, especially as Đà Nẵng prepares for greater integration following its merger with Quảng Nam Province.
The Đà Nẵng FTZ is the first of its kind in Việt Nam. How will Đà Nẵng City successfully implement the operation of the FTZ?
It’s a challenge, but also an opportunity for Đà Nẵng to build the first ever model of a FTZ in Việt Nam. The city’s authorities will concentrate on building a feasible policy and effective mechanism for the FTZ and submit them to the National Assembly, the Government and the Prime Minister for approval. A key factor in making the FTZ a different and lucrative investment destination will be learning from international partners who can contribute to the successful operation of the Đà Nẵng FTZ in the future.
Đà Nẵng will focus on synchronised planning and development of key traffic infrastructure and essential technical projects as well as digital technologies to support the smooth operation of the FTZ. Land clearance and resettlement activities will be carried out transparently to keep pace with the FTZ construction schedule.
A printed Circuit board is produced at a factory of the Đà Nẵng IT Park. The city has been speeding up the preparation for building the first ever Free Trade Zone as a key economic driving force in the region and the country. Photo courtesy of Quang Huy
The city will actively lure strategic investors with advanced technology and strong financial and sustainable development commitments, while specific investment promotion programmes will be designed for targeted projects at the FTZ.
Developing high-quality human resources is seen a vital factor for the existence and development of the FTZ, so co-operation deals with educational centres and universities in training skilled manpower in semiconductors & AI, and smart logistics must be prioritised.
The Đà Nẵng Special Economic Zone Authority (DSEZA) will also focus on one-stop service in offering a comprehensive and transparent investment environment for long-term investors operating at the zone.
Will the FTZ really able to attract big global groups?
The FTZ is a clear opportunity for global investors seeking profit, with a series of preferential regulations and unique offerings given by local authorities and the government. The Đà Nẵng FTZ is seen as the only unique ecological system that has linkages with a complex network of well-invested infrastructure projects, including the deep-sea ports of Liên Chiểu and Chu Lai; the airports of Đà Nẵng and Chu Lai; Đà Nẵng Hi-tech Park, Đà Nẵng centralised information technology zone; six current industrial parks in Đà Nẵng, and the other IZs in Quảng Nam, and the Đà Nẵng International Finance Centre.
Headquarters of the Đà Nẵng Hi-tech Park authority. Đà Nẵng's Special Economic Zone Authority has been assigned to cover the management of the Đà Nẵng Hi-Tech Park and Industrial Zones Authority, IT Park, six other industrial parks, four centralised information technology zones, and the Free Trade Zone. VNS PHoto Công Thành
This system will create a comprehensive value chain including production, logistics, finance with digital applications, AI, blockchain, IoT and a smart Master Plan to make DSEZA a favourite destination – where key investors could find cost optimization and reduce risk in investment and production. A transparent and open policy designed for the Đà Nẵng FTZ will help build trust and long-term partnerships among key investors along with an innovative ecological system.
The management board of DSEZA also provides full international-standard services of accommodation, entertainment, offices, and utilities to all investors operating at the FTZ.
We focus on R&D and innovation, fostering start-up incubators for new technology creation, and improving competitiveness. We also ask for support from the National Assembly and the Government for quick approval of unique policies and mechanisms submitted by the DSEZA and Đà Nẵng City in setting up a legal framework for an international standard investment environment.
State budget allocations from the Government will play an important role in land clearance and resettlement projects as well as boosting Public-Private-Partnership (PPP) projects outside of the FTZ boundary, and investment promotions of the FTZ at international economic forums. A series of Memoranda of Understanding have been signed between Đà Nẵng City authorities and major domestic and international investors including Terne Holdings Group, One Destination, BRG Group, Imex Pan Pacific, Newtechco Group, and Sài Gòn-Đà Nẵng Investment JSC.
