The Hai Phong Free Trade Zone: New Expectations for Vietnam’s Next Growth Frontier

Vietnam’s economic landscape is set for a significant transformation with the development of the Hai Phong Free Trade Zone (FTZ) — a bold initiative designed to harness the port city’s strategic advantages and emerging global trade dynamics. Officially enabled under Resolution No. 226/2024/QH15 and sanctioned by the city’s People’s Committee, this initiative represents a pivotal step toward realizing Hai Phong’s potential as a regional trade, logistics, and manufacturing powerhouse.

A New Era of Trade and Integration

The FTZ covers approximately 6,292 hectares across three strategic sites integrated with the Dinh Vu–Cat Hai Economic Zone and the Southern Hai Phong Coastal Economic Zone. The zone’s planned layout includes production areas, port and logistics hubs, trade and service zones, and supporting infrastructure, creating an ecosystem optimized for global commerce.

This development is not just physical; it reflects a new management mindset that combines global FTZ best practices with Vietnam’s unique socio-economic context. Rather than focusing solely on tax incentives, city leaders emphasize a streamlined administrative environment and robust legal frameworks that simplify business operations and facilitate trade flows.

By pioneering this model in northern Vietnam, Hai Phong signals its ambition to support deeper economic integration with international markets, especially in a post-COVID global trade environment where resilience and efficiency are critical.

Attractive Policies to Drive Investment

A cornerstone of the FTZ’s appeal is its comprehensive suite of 17 preferential mechanisms that position the zone as an investor-friendly environment. These include:

• Superior tariff and domestic tax incentives for foreign investors
• Simplified investment and administrative procedures
• A “one-stop” system that significantly cuts red tape
• Visa exemptions and extended residency permits for foreign experts and high-skilled talent connected to zone projects

Strategic Advantages of Hai Phong

Situated at the heart of Vietnam’s Northern Coastal economic corridor, Hai Phong has long been a logistics and maritime gateway. Its existing infrastructure, including deep-water ports capable of accommodating large cargo vessels, offers a solid foundation for expanding global connectivity.

Local industry stakeholders, including the European Chamber of Commerce in Vietnam, have praised the city’s synchronized transport networks (sea, air, and rail) and a flexible workforce increasingly skilled in digital and green technologies. These strengths not only support operational efficiency but also make the FTZ an attractive destination for investors targeting sustainable, high-value sectors.

Investor Confidence and International Integration

Investor confidence has been buoyed by positive feedback from industry leaders. According to representatives involved in the region’s industrial parks and logistics sectors, the FTZ’s standards, particularly if aligned with European Union norms, could encourage existing investors to expand and new players to enter the market.

Moreover, the ambition is for the FTZ to evolve into a global trade center and international distribution hub, serving not just Vietnamese markets but acting as a conduit for goods moving across Asia and beyond. A key part of this vision involves embedding smart port management systems, improved multimodal logistics, and greener transport solutions — all of which align with global supply chain trends.

Phased Implementation: 2025–2035

The development roadmap for the FTZ is structured into two major phases:

• Phase 1 (2025–2030): Completion of the legal framework and core infrastructure, launch of pilot projects, and implementation of streamlined customs and administrative operations.
• Phase 2 (2030–2035): Expansion of completed infrastructure and comprehensive application of pilot mechanisms to support broader investor participation.

Linking to Broader Policies and Opportunities

The Hai Phong FTZ initiative is part of Vietnam’s broader economic strategy that includes the rollout of multiple free trade zones across key regions, including Da Nang and Ho Chi Minh City by 2026, contributing significantly to national GDP growth targets.

Outlook

The Hai Phong Free Trade Zone embodies Vietnam’s next stage of economic evolution — integrating preferential policy, strategic infrastructure, and global investor engagement. As it moves from planning to implementation, the FTZ is expected to serve as a catalyst for regional competitiveness, sustainability, and long-term foreign direct investment.

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