Vietnam: Da Nang FTZ takes off — a bold step toward economic expansion

01 Jul 2025    2 minute read
Da Nang Free Trade Zone

In brief

On 26 June 2024, the National Assembly of Vietnam adopted Resolution No. 136/2024/QH15 ("Resolution 136") on the organization of urban government and the pilot implementation of special mechanisms and policies to promote the development of Da Nang City. A key highlight of this resolution is the establishment of the Da Nang Free Trade Zone (FTZ).

To implement Resolution 136, the Government issued Decision No. 1142/QD-TTg dated 13 June 2025 ("Decision 1142"), officially establishing the Da Nang FTZ. The FTZ is a designated functional area with defined geographical boundaries, created to pilot innovative mechanisms and policies aimed at attracting investment, finance, trade, tourism and high-quality services.

Contents

Key takeaways 

1. Functional areas and development objectives

Under Decision 1142/QĐ-TTg, the FTZ encompasses seven designated locations that are identified as core functional areas with the following development objectives:

  1. Production and logistics: Develop modern production and logistics centers with advanced infrastructure and digitalization, focusing on high-value manufacturing and connectivity with global supply chains.
  2. Commercial-service: Create international-standard commercial spaces for duty-free trade, tourism, resorts, e-commerce, education, healthcare and entertainment to foster a knowledge economy and regional connectivity.
  3. Tech and innovation: Establish high-tech hubs for digital technology, R&D, startups, and innovations in AI, semiconductors, big data, cloud computing, IoT, blockchain and renewable energy, to enhance global digital competitiveness.

2. Investment incentives and policies

While Decision 1142 does not introduce new investment incentives, it refers to the preferential policies outlined in Resolution 136, which include the following:

  • Investment: The People's Committee streamlines project approvals using provincial-level processes. Foreign investors establishing economic organizations in the FTZ are exempt from investment registration certificates, following the same simple steps as local companies.
  • Land: Investors in the FTZ can lease or sublease land with rights similar to those in industrial zones. Adjustments to land use plans are managed by the Da Nang People's Committee to support investor certainty.
  • Customs and tax: FTZ projects enjoy tax breaks like those in economic zones, including corporate income tax reductions. Goods and services in the FTZ are treated as non-tariff zones, with fast-track customs procedures for exports and imports. Investors can choose the most favorable incentives available.
  • Others: Investment projects in the FTZ are eligible for additional incentives, equivalent to those offered in economic zones, covering tax exemptions, land use benefits, favorable credit terms, accounting advantages, and other benefits as stipulated by relevant Vietnamese laws.

3. Development roadmap

Decision 1142 does not specify a detailed development timeline for the FTZ. Instead, it outlines that the FTZ will be developed in alignment with Vietnam's national socioeconomic development strategy, the master plan for Da Nang, and the approved FTZ development orientation.

The Da Nang People's Committee and the Ministry of Finance are designated as the key authorities responsible for implementing and developing the FTZ.

Conclusion

The establishment of the Da Nang Free Trade Zone reflects the city's proactive and forward-thinking approach in initiating transformative policies to foster a dynamic and globally competitive economy. As these developments unfold, our firm stands ready to assist clients in navigating the legal and regulatory landscape, including guidance on Resolution 136 and related implementation frameworks.

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Tuan Linh Nguyen, Senior Government Affairs Manager, and Ngoc Trung Tran, Senior Regulatory Advisor, contributed to this legal update.

Contact Information
Manh Hung Tran
Partner
Hanoi
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tmh@bmvn.com.vn
Thanh Vinh Nguyen
Partner
Ho Chi Minh City
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thanhvinh.nguyen@bmvn.com.vn

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