Free trade zone poised to significantly boost Da Nang’s economy

Positioned to become a central economic hub for central Vietnam and the Central Highlands, Da Nang is set to redefine itself as a key regional economic connector.

As Vietnam’s first FTZ, the Da Nang Free Trade Zone has garnered significant public attention. Several major domestic and international enterprises have begun exploring investment opportunities.

At an event on Sunday last week to announce and award the prime minister's decision on the establishment of the Da Nang Free Trade Zone, it was announced that Sun Group would invest in three of the seven designated areas within the FTZ.

Dang Minh Truong, chairman of Sun Group, highlighted the company’s origins and growth in Da Nang and its strategic investments across Vietnam, including Phu Quoc International Airport and an international conference center for hosting APEC in 2027.

He emphasized that Da Nang being selected as Vietnam’s first FTZ location marks a major milestone, demonstrating the nation's and the city’s ambition to reach a global economic level.

Together with the planned international financial center, the FTZ aims to attract foreign investors and international financial institutions, propelling Da Nang’s economy toward sustained double-digit growth.

“The FTZ is projected to contribute around 12–13 percent to Da Nang’s GRDP by 2030, 16–17 percent during 2030–40, and up to 25–26 percent by 2050," Truong stated.

“These targets are feasible when compared to FTZs in China, such as Shenzhen and Shanghai, which contribute about 22 percent to GDP, account for 45 percent of FDI inflow, and handle 60 percent of export volume."

Sun Group’s investment covers a total area of 645 hectares, which will be developed into commercial-service complexes, resorts, duty-free zones, shopping centers, digital economic zones, IT hubs, and centers for innovation.

Major enterprises join Da Nang FTZ

According to the Da Nang People’s Committee, many strategic investors have committed to the FTZ so far. 

They include Sun Group, Terne Holdings and The One Destination, BRG Group, Thanh Binh Phu My JSC, Imex Pan-Pacific Co. Ltd., Phuong Trang Investment JSC, Newtechco Group JSC, a joint venture between Newtechco Group JSC and Phytopharco Vietnam Co. Ltd., and Saigon – Da Nang Investment JSC.

The Da Nang administration has authorized investment research for four interested firms: Amata Vietnam Public Co. Ltd., Green Ipark JSC, Quoc Quang Electric Co. Ltd., and European Plastic JSC.

Mai Cong Ho, general director of Saigon – Da Nang Investment JSC, told Tuoi Tre (Youth) newspaper that as this is the first FTZ of its kind in Vietnam, many businesses are uncertain due to a lack of experience and clear understanding of how such zones operate in practice.

His company is taking strategic steps to prepare for the near future.

The company is partnering with firms in developed countries that already operate FTZs effectively. Key staff must study what defines an FTZ, how it differs from special economic zones and other models, standards for FTZs, and needed preparations.

Permanent Deputy Prime Minister Nguyen Hoa Binh stated that following the announcement of the FTZ, the priority is turning the prime minister's decision into reality.

With Da Nang incorporating Quang Nam Province, he stressed the need for broader regional integration, especially with Chu Lai and Tam Ky in the province, to ensure the FTZ’s success.

He also urged the city to focus not only on coastal development but also on its western areas, which remain underdeveloped.

While boosting the urban coastal economy, efforts must be made to improve infrastructure and services in mountainous districts to enhance livelihoods in the newly merged administrative areas.