Da Nang (VNS/VNA) - The central city of Da Nang has approved an investment promotion plan to attract strategic investors for infrastructure development at the 1,881-hectare Da Nang Free Trade Zone (FTZ), positioning it as the country’s first pilot zone for applying so-called renewal institutions to drive a new economic growth model.
The management board of the Da Nang FTZ said the zone, designed with seven specialised functional areas including production, logistics, trade and services, digital technology, information technology and innovation hubs, would apply special mechanisms and preferential policies to establish a pioneering model for Vietnam’s economic development.
It said the successful operation of the Da Nang FTZ would be used as a template for developing other free trade zones nationwide.
The FTZ is expected to offer the smoothest conditions yet for investors, operating a one-stop administrative mechanism covering land-use certificates, investment licences, construction, environmental procedures, customs and tax.
According to the management board, the city has already signed memorandums of understanding with several investors, including BRG Group, Sai Gon Da Nang Company, Phuong Trang Group, Thanh Binh Phu My Company, Terne Holdings Group, Imex Pan Pacific, Newtechco Group and Sun Group, for the implementation of functional sites within the zone.
Last year, Sun Group officially began construction of the fifth functional site, a 90ha hub for eco-tourism, high-quality health care services, luxury resorts, premium entertainment, duty-free trade and international-standard shopping at the foot of Ba Na Hills, with an investment of 800 billion VND (32 million USD).
Meanwhile, Sai Gon Da Nang Company has been preparing construction schedules for the second functional site, a logistics centre within the FTZ, located at the foot of the Hai Van Pass.
The Da Nang FTZ is expected to contribute 17.9% to the city’s gross regional domestic product and create 127,000 jobs by 2040, with total investment needs estimated at 40 trillion VND (1.6 billion USD).
It is intended to serve as an international freight transit hub, linked to Lien Chieu Port, Da Nang International Airport, Chu Lai Airport and the East-West Economic Corridor, with a long-term vision of integrating into the Asia-Pacific global supply chain.
The city also plans to inaugurate the first office of the International Finance Centre in January at the newly launched Da Nang Software Park No 2, under its strategic master plan for 2030–50.
Last year, a range of investors from Japan, the Republic of Korea, Singapore, the US and China, including Sumitomo, Hyundai E&C, KOGI Group, Bitdeer, Soilbuild and ST Telemedia, as well as the Shandong Enterprise Group Overseas Development Promotion Association, Topgene Biotechnology and Capstone Investment, conducted surveys and working visits at the Da Nang FTZ.
Meanwhile, US-based CT-Strategies and Switzerland’s VinaLog Holding AG proposed advisory, logistics and infrastructure projects linked to the FTZ.
The FTZ is expected to expand southwards to cover the existing Chu Lai Open Economic Zone.
Da Nang is seeking strategic investors with investment capital ranging from 2 trillion VND to 8 trillion VND for projects within the FTZ./.
VNA
