Beach hub revs up for Free Trade Zone

Construction is under way at Liên Chiểu deep-sea port in Đà Nẵng City. The central city has been speeding up preparation for establishment of a Free Trade Zone, combined with the operation of Liên Chiểu Port. VNS Photo Công Thành

The central city of Đà Nẵng has been revving up preparatory works on the establishment of the Free Trade Zone( FTZ) project since it was passed by the National Assembly in late June.

At least 30 decisions on the procedure have been made by the city’s People’s Council [Assembly] ready for the zone which will start construction in 2025.

The city has been seeking appropriate locations for key function sites of manufacture, a logistics centre and trade and services, on an estimated area from 1,000ha to 1,500ha in the FTZ.

"The FTZ project will become active from January of 2025 and some key items on the zone must be ready by then,"

“It’s very urgent. We have only five years to implement the pilot project under the National Assembly’s approval and only six months for the project to start the very first items of construction,” Cường said.

“The framework of the project will be reviewed by the Prime Minister for commencing. The city has several months to complete all procedures for calling investors and key infrastructure developers in 2025.”

Lê Thị Kim Phương, director of the city’s Industry and Trade Department, said some key investors had approached the FTZ, but it was waiting for official government approval to make any decision.

A new urban area is being built near Đà Nẵng City's Hi-Tech Park and industrial zone centre. The area is expected to be an economic driving force for Đà Nẵng with the introduction of the first ever Free Trade Zone. Photo courtesy of Quang Huy

She said different function sites would be built on an area from 80ha to 200ha in Hoà Liên, Hoà Nhơn and Hoà Ninh communes of Hoà Vang District and would be calling for strategic investors.

“The city will build up an overall plan and series of works to be completed by the end of 2025. It also needs a Master Plan on entire solutions of infrastructure, investment environment reform, preferential policy for all investors,” Phương said.

She said the city and its international partners would join together in boosting investment promotions for the FTZ as well as offering key strategic leading investors.

Some major key locations – a manufacturing zone on 538ha, a 132ha trade and service centre, a logistics area on 536ha – would be reviewed in the feasibility proposals, she added.

The vice chairman Cường emphasised that FTZs had been developed in many countries, but it’s the first time for Việt Nam, and Đà Nẵng would be a five-year pilot project.

“We have to shape its frame first, as the city will be a trailblazer in developing the first ever FTZ in Việt Nam. The operation of the zone will be linked with the on-going construction of Liên Chiểu deep-sea port,” he said.

Liên Chiểu Port, which covers an area of 450ha, was designed for handling 50 million tonnes of cargo per year by 2050.

Photo shows the international terminal of Đà Nẵng International Airport. The city has been boosting infrastructure development of the seaport and airport in order to create smooth traffic for the country's first Free Trade Zone. Photo courtesy of AHT

Last year, Đà Nẵng’s administration submitted a plan for a duty-free zone on 151ha at the end of Bà Nà Suối Mơ Road – 30km southwest of the centre and near the Bà Nà Hills resort, for a trade complex, entertainment sites, duty-free shops, a logistics hub, warehouses, healthcare services, an R&D centre, an international education centre, a medical school and an exhibition centre.

An international finance centre has been included in the 2030-50 Master Plan and the location will be developed at the current An Đồn Industrial Zone in the tourism Sơn Trà District

The beach city will be building on its dream of becoming an international centre for semiconductor and hi-tech industries after showing the area to Intel, Marvell Technology Group and Synopsys in the US for long term investment commitments.

Taiwan’s Foxlink International company has been building an electronics factory worth US$135 million at Đà Nẵng’s Hi-tech Park, which will begin operations before the end of 2024.