Vietnam’s first Free Trade Zone (FTZ) will operate on the foundation of a special regulatory framework, modern infrastructure, and breakthrough development thinking aligned with international standards. The selection of Da Nang for this model is not only symbolic but also represents a major step forward in institutional reform and the country’s comprehensive integration strategy.
On June 13, 2025, the Prime Minister signed Decision No. 1142/QD-TTg to officially establish the Da Nang Free Trade Zone, assigning the Da Nang Hi-Tech Park and Industrial Zones Authority (DSEZA) as the governing body responsible for direct state management of the zone under a “one-stop, on-site” model.
This is a historic decision, marking the first time Vietnam has established and operated an FTZ based on a combination of special regulations, advanced infrastructure, and innovative development approaches aligned with international standards.
The headquarters of the Da Nang Hi-Tech Park and Industrial Zones Authority (DSEZA) – the agency assigned to directly carry out state management functions within the Free Trade Zone under the “one-stop, on-site” model.
A New Institutional Testbed
More than just an open economic model, the Da Nang FTZ is expected to serve as a testbed for new policies in investment, taxation, customs, technology, finance, human resources, and digital transformation. It aims to create new growth momentum for both the Central–Highlands region and the country as a whole.
The choice of Da Nang as the pilot location results from years of strategic preparation, including planning, infrastructure development, and institutional readiness. Da Nang is uniquely positioned with a high-tech park, a centralized IT zone, a deep-water seaport (Lien Chieu), an international airport, and an emerging logistics chain.
Located strategically on the East–West Economic Corridor and connected to the Central Highlands and Laos, Da Nang holds a clear advantage as an international trade gateway. Additionally, the city has been granted high autonomy by the National Assembly and the Government under Resolutions 43-NQ/TW and 136/QH15, along with several prime ministerial decisions. These legal frameworks allow Da Nang to pioneer beyond existing regulations.
Key Principles of Operation
Decision 1142/QD-TTg lays out critical operational principles for the FTZ, centered on controlled liberalization and integration of modern pillars: free movement of goods, capital, data, and professionals; preferential tariff policies; streamlined administrative procedures; and sandbox mechanisms for innovation, digital technology, new energy, and semiconductors. The zone will be managed under a centralized, professional model that shifts focus from control to facilitation.
DSEZA will serve as the central authority not only for administrative management but also for investment promotion, infrastructure development, enterprise support services, and ensuring security and sustainability in commerce, finance, and the environment.
A Political Signal for Deep Reform
The establishment of the Da Nang FTZ sends a clear political message: Vietnam is ready to embark on a deeper, more flexible path of institutional reform in line with global competitive dynamics.
Rather than relying on cheap land, low-cost labor, or prolonged tax exemptions, the FTZ will offer a new model of incentives based on governance quality, procedural efficiency, market connectivity, and technological capability. If successful, the Da Nang FTZ will serve as a blueprint for replication across other key economic regions, helping Vietnam escape the middle-income trap and integrate more deeply into global value chains.
A Strategic Milestone for the Region
As Da Nang and Quang Nam move toward administrative unification, the FTZ’s launch holds strategic significance in linking existing industrial zones with raw material sources, labor pools, and expansion space. Major investors in clean energy, logistics, data centers, AI, and semiconductors will find a strong legal and infrastructural foundation for large-scale projects.
DSEZA will also deploy a Public Service and Business Support Center, a multilingual chatbot platform, and an integrated FTZ regional database to ensure effective management and investor services in line with international standards.
A Bold Declaration of Reform
According to Da Nang city leaders, Decision 1142/QD-TTg is not only a milestone for the city’s development but also a strong declaration from the Government on its commitment to institutional experimentation and reform. If implemented decisively, comprehensively, and creatively, the Da Nang FTZ will not only become a “promised land” for high-tech enterprises and export-oriented services but also a platform for Vietnam to showcase its capacity for integration — through innovative thinking, concrete actions, and an ambition to stand shoulder-to-shoulder with Asia’s leading trade and technology hubs.
Source: https://cand.com.vn/su-kien-binh-luan-thoi-su/thu-tuong-quyet-dinh-thanh-lap-khu-thuong-mai-tu-do-dau-tien-cua-viet-nam-i771742/