HCMC – The National Assembly (NA) passed a resolution today, June 26, establishing a free trade zone (FTZ) in the central coastal city of Danang and pilot special development policies, with 452 out of 459 delegates voting in favor.
Effective from January 1, 2025, the resolution grants Danang special mechanisms and policies in finance, investment, urban planning, and high-tech industries for a five-year pilot period. This initiative aims to boost trade, tourism, and services in the central city.
The FTZ, linked to the Lien Chieu port, will have functional areas designated by the prime minister, including manufacturing, logistics, and commercial services. Trade between the FTZ and areas outside will be considered import-export activities under Vietnamese law.
Investors in the FTZ will enjoy preferential tax policies, reduced land rents, and customs priority for import-export activities. Foreign investors will be able to set up shop in the FTZ without prior investment projects or investment registration certificates.
The NA addressed concerns about potential abuse of these policies, emphasizing the need for strict supervision and inspection by Government agencies.
