Free trade zones (FTZs) act as vital hubs for cross-border trade, optimizing supply chains, and fostering international cooperation. What other benefits can this model bring? A strategic approach Danang City recently proposed a sea reclamation project to create additional space for a 2,317-hectare free trade zone. This includes approximately 300 hectares reclaimed from the sea. The Danang FTZ is set to become Vietnam’s first integrated model, combining seaport and airport logistics with trade, services, and export processing. The Vietnam Logistics 2024 report, released by the Ministry of Industry and Trade, highlights free trade zones as a focal point for Vietnam’s logistics and economic development. Although Vietnam is in the early stages of FTZ development, the report identifies Danang, with its plans for an FTZ connected to Lien Chieu Port, as a key player. Drawing on successful examples from Singapore, the United Arab Emirates, and China, where FTZs have significantly boosted the logistics sector and national economies, the report suggests that FTZs could become a cornerstone of Vietnam’s future economic growth. FTZs offer numerous advantages, including tariff preferences, simplified customs procedures, and state-of-the-art infrastructure. These zones allow businesses to import raw materials for production or goods for re-export, creating a strategic […]
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