Hai Phong to Launch Northern Vietnam’s First Free Trade Zone: A Game-Changer for FDI and Global Trade

Hai Phong will establish a 6,292-hectare free trade zone in 2025, boosting FDI, logistics, and industrial growth in Northern Vietnam.

A Landmark Development for Northern Vietnam

Hai Phong, one of Vietnam’s fastest-growing industrial and logistics centers, is preparing to establish a 6,292-hectare Free Trade Zone (FTZ) in 2025. This landmark development aims to position the city as Northern Vietnam’s first integrated FTZ, creating new opportunities for trade, manufacturing, and investment.

The FTZ will cover three strategic areas:

• Southern coastal zone (Chan Hung, Hung Thang): ~2,923 hectares
• Southern Dinh Vu non-tariff/industrial zone: ~1,077 hectares
• Cat Hai – Dinh Vu economic zone islands: ~2,292 hectares

By combining industrial production, logistics, and commercial trade in a single system, Hai Phong’s FTZ will compete with regional trade hubs like Shenzhen, Incheon, and Batam, while reinforcing Vietnam’s role in global supply chains.

Two-Phase Development Plan

The Hai Phong FTZ will be developed in two major phases:

1. Phase 1 (to 2030):

• Build legal frameworks and pilot special economic policies.
• Attract strategic investors in logistics and advanced manufacturing.
• Establish infrastructure to connect FTZ subzones.

2. Phase 2 (2030–2035):

• Expand and modernize infrastructure across the full 6,292 hectares.
• Deepen integration with international supply chains by focusing on high-tech, biotech, and R&D projects.
• Transform Hai Phong into a regional trade and innovation hub.

This phased approach allows Hai Phong to build gradually while still attracting investment momentum in the short term.

Economic Momentum Behind the FTZ

Hai Phong’s economy provides a strong foundation for the FTZ:

• In the first half of 2025, GRDP rose 11.2% year-on-year, driven by industry (+13%) and services (+10%).
• After merging with Hai Duong in July 2025, the city expanded to 3,194 km², with a population exceeding 4.6 million.
• With 51 seaports, Hai Phong ranks second in Vietnam, making it a critical maritime gateway for Northern trade.

Policy Reforms to Support Investors

The Hai Phong government has pledged to make the FTZ an investor-friendly zone through:

• A one-window digital system for administrative procedures.
• Stronger dialogue with businesses to resolve challenges quickly.
• Expansion of infrastructure, housing, and workforce training.
• Transparent policies to ensure fair and efficient investment processes.

These measures align with Vietnam’s broader goal of enhancing its investment climate, as emphasized by the Ministry of Planning and Investment

Implications for Vietnam’s Real Estate Market

The FTZ will have far-reaching effects on investment and industrial development:

• Manufacturers gain access to ready-built factories and export-oriented industrial zones.
• Logistics providers benefit from proximity to ports and highways that cut transportation costs.
• Real estate developers can capitalize on demand for warehouses, cold storage, and LEED-certified facilities.
• Investors enjoy a unified regulatory framework that simplifies licensing and land use.

Vietnam has already seen over $12 billion in manufacturing FDI in the first half of 2025, the highest in 15 years. The Hai Phong FTZ is expected to accelerate this trend by offering a globally competitive ecosystem.

Regional Competitiveness

The Hai Phong FTZ is not just about attracting more projects—it is about shaping Vietnam’s industrial future. Its advantages include:

• Strategic location close to Hanoi, Quang Ninh, and China’s southern provinces.
• Integrated logistics that reduce costs and boost efficiency.
• Green development with ESG-aligned infrastructure.
• Regional positioning as Northern Vietnam’s gateway to global supply chains.

Key Takeaway

The creation of Hai Phong’s Free Trade Zone in 2025 marks a turning point for Vietnam’s industrial and trade landscape. With its scale, logistics advantages, and investor-friendly reforms, the FTZ is set to become a new growth engine for Northern Vietnam.

For manufacturers, logistics providers, and global investors, this is a development that signals more than just a local milestone—it represents Vietnam’s next step toward becoming a regional trade powerhouse.

For investors seeking to capture opportunities, Core5 Vietnam is not just a developer — we are your strategic partner in long-term success.

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