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Vietnam Approves Da Nang Free Trade Zone – A New Frontier for Australian Investment

bao da nang

Vietnam, 16 June, 2025 - In a significant step toward boosting international trade and investment, the Vietnamese Government has officially approved the establishment of the Da Nang Free Trade Zone (FTZ) under Decision No. 1142/QD-TTg signed by Deputy Prime Minister Nguyen Hoa Binh on 16 June 2025.

The FTZ marks the first large-scale, multi-sector free trade zone in Central Vietnam, covering 1,881 hectares across seven non-contiguous locations. Strategically positioned near Lien Chieu Port, Da Nang International Airport, and the East–West Economic Corridor, the FTZ is poised to become a key logistics, innovation, and export hub for regional and global investors.

Strategic Objectives and Incentives

The Da Nang FTZ is designed to attract foreign investment in high-tech, logistics, and innovation-led sectors, offering preferential tax regimes, streamlined administrative procedures, and state-supported infrastructure development. The zone is expected to contribute significantly to Vietnam’s economic modernization and regional integration.

Notable incentives include:

  • Corporate Income Tax (CIT) Incentives:

    • 0% CIT for the first 4 years

    • 5% for the next 9 years

    • 10% long-term preferential rate thereafter

  • Land Use Incentives:

    • Up to 70 years of land use rights

    • Full exemption from land lease fees

    • Fast-track land clearance and allocation

  • Administrative Reform:

    • One-stop investment and customs services

    • Priority processing for large-scale and strategic projects

  • Infrastructure Investment:

    • Upgraded transport, port, and warehouse systems

    • Digital infrastructure to support smart manufacturing and services

Implications for Australian Business

The launch of the Da Nang FTZ presents strategic opportunities for Australian companies, especially in sectors aligned with Vietnam’s development priorities, including:

  • High-tech manufacturing and semiconductors

  • Renewable energy and green infrastructure

  • Digital and financial services

  • Smart logistics and supply chain management

  • Education and R&D collaborations

The FTZ is also expected to complement Vietnam’s commitments under the AANZFTA, CPTPP, and RCEP, opening up greater market access for Australian companies looking to expand in ASEAN.

Next Steps

Implementation of the FTZ will proceed in phases, with site development, customs readiness, and investor registration mechanisms to be completed over the coming year. Da Nang authorities are currently working to finalise detailed guidelines and investor outreach programs.

AusCham encourages members interested in exploring investment or partnership opportunities in Da Nang to contact the Chamber for further information and support.

Should you have any inquiries, please contact AusCham's Head of Advocacy & Partnerships at advocacy@auschamvn.org.