During the event, Do Thi Quynh Tram, Deputy Director of the Department of Industry and Trade, revealed an unprecedented package of incentives aimed at attracting businesses to the FTZ.

The city's policies include exemptions from investment licensing for foreign businesses operating within the zone, priority customs clearance, four years of corporate income tax (CIT) exemption followed by a 50% reduction over the next nine years, and five years of personal income tax (PIT) exemption for specialists in artificial intelligence and semiconductors. Investors can also secure land leases for up to 70 years and receive support for innovation projects.

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Do Thi Quynh Tram, Deputy Director of the Department of Industry and Trade.

Tram also noted that the city has completed and submitted several new, tailor-made policy mechanisms designed to give the FTZ a competitive and operational edge.

Regarding land use, the city proposes direct land allocation and leases without the need for auction for FTZ projects. It also seeks the authority to designate strategic investors to carry out infrastructure projects that connect seaports and airports under the public-private partnership (PPP) model. Moreover, Danang has requested a full waiver of land and water surface rent for the entire lease period, excluding residential or conventional commercial service projects.

Tax policy incentives include a 10% corporate income tax rate for 30 years for priority projects, and a 15-year term for other sectors, with the same four-year tax holiday and nine-year 50% reduction. PIT is proposed to be halved for 15 years for experts, scientists, executives, and highly skilled workers.

Goods transiting within the FTZ may be stored for up to 90 days, with two extensions permitted, each lasting up to 60 days. Foreign investors will be allowed to hold up to 49% equity in aviation-related ventures and up to 51% in logistics and transshipment centers.

Businesses operating in the zone will benefit from streamlined customs procedures, including post-clearance audits in place of pre-clearance inspections and exemptions from foreign trade management measures for goods from both domestic and international origins. They are also allowed to engage in bonded warehouse operations, transshipment, foreign currency-based quotations, pricing, and payment - creating a highly flexible business environment tailored for the FTZ.

Foreign investors will also be permitted to quote prices, sign contracts, and make payments in foreign currencies. Foreign bank branches may open transaction offices within the FTZ.

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A designated FTZ development site in Hai Van Ward, spanning about 177 hectares, situated near Hai Van Pass, Cu De River, Kim Lien Bay, and Lien Chieu Industrial Park.

A section of the FTZ is located in Hai Van Ward, covering about 177 hectares, bordered by the Hai Van Pass, Cu De River, Kim Lien Bay, and the Lien Chieu Industrial Park.

According to the Department of Industry and Trade, the city proposed these mechanisms to the national government in October. The proposals are currently under review by the National Assembly’s Standing Committee and are expected to be discussed during the December legislative session.

This comprehensive incentive package aims to create a “playing field attractive enough” to draw leading players in logistics, digital technologies, supporting industries, and large-scale infrastructure - sectors that demand open, competitive policy environments.

Le Quang Nam, Vice Chairman of the Danang People’s Committee, emphasized that Prime Ministerial approval of Decision No. 1142/QD-TTg to establish the FTZ marks a major milestone, affirming confidence in Danang’s potential to pioneer new economic models driven by innovation and global integration.

The Danang Free Trade Zone will span approximately 1,881 hectares and encompass seven non-contiguous locations designated for specialized functions: manufacturing, logistics, commerce and services, digital industry, information technology, innovation, and other functions. The manufacturing and logistics areas will play a central role in establishing Danang as a regional and international hub for production and goods transshipment.

Under the Prime Minister’s decision, each functional zone within the FTZ will be planned with a focus on technological integration, digitalization, and strong interconnectivity.

Ho Giap