Vietnam News

Da Nang eyes setting up Vietnam’s first free trade zone

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Authorities in Da Nang City, central Vietnam have suggested the creation of the country’s inaugural pilot free trade zone (FTZ), which includes incentives for foreigners, aiming to generate a new development boost for the coastal city.

The Da Nang administration recently sent a dispatch to the Ministry of Planning and Investment, proposing the establishment of a pilot FTZ that would encompass Lien Chieu Sea Port and Da Nang International Airport and would benefit from specific mechanisms and policies tailored for the city’s development.

The ministry has been collecting feedback on these proposals before completing and submitting them to the National Assembly for consideration and approval, Lao Dong (Labor) newspaper reported.

Da Nang authorities envision the proposed FTZ as Vietnam’s first, functioning as a hub for export processing, logistics, trade and service operations, and duty-free businesses.

Businesses in the FTZ will benefit from standard economic zone incentives plus additional city-specific policies aimed at fostering breakthroughs, the Vietnam News Agency reported.

The central government will streamline regulations governing the organization, operation, and policies of the Da Nang FTZ, prioritizing convenience and competition for businesses while ensuring effective management.

The proposal grants municipal authorities the power to invest in, establish, and adjust the general planning of the FTZ according to the city’s plan.

It also authorizes them to acquire land for FTZ construction.

The FTZ will implement preferential policies on export tax, import tax, special consumption tax, and value-added tax, mirroring those applied to non-tariff zones as per legal regulations.

The zone can establish customs sub-departments in its sub-zones for customs procedures, inspection, and supervision.

This conforms to regulations for customs agencies operating outside border gates, complemented by remote monitoring through smart devices.

International tourists, domestic tourists, and local residents are allowed to enter and exit the FTZ’s subdivisions on the basis of compliance with its operating regulations.

Infrastructure investors in the FTZ will receive allocated land available for lease or sublease, akin to practices in economic zones, industrial parks, and export processing zones.

Foreigners holding visas valid for less than three months and Vietnamese citizens planning to leave Vietnam can buy duty-free goods in the FTZ without limitations on quantity or value for bringing out of the country.

Foreign and Vietnamese tourists staying in Da Nang for one day or more can buy duty-free goods in the FTZ for use in Vietnam, subject to restrictions.

Each person is allowed to make one purchase per day and no more than three times a month.

Buyers are required to adhere to specified quantity limits for certain items during each entry and exit from the FTZ.

The Da Nang administration suggests permitting the establishment of medical facilities and high-class hospitals in the FTZ, along with other proposed policies and regulations, according to VietnamFinance e-magazine.

By Vinh Tho – Tuoi Tre News – March 4, 2024

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