Vietnam eyes free trade zones to boost growth, investment, logistics

THE HANOI TIMES — Prime Minister Pham Minh Chinh has called for the establishment of free trade zones  (FTZs) in strategic economic areas and the exploration of duty-free ports to spur economic growth, attract investment, and position Vietnam as a major logistics hub in the digital age.

These are among the actions outlined in Directive No. 47, which sets out urgent tasks and solutions designed to boost growth in 2025.

Several provinces have shown growing interest in these initiatives.

Vo Tan Duc, Chairman of the People's Committee of the southern province of Dong Nai, proposed a pilot 2,000-hectare FTZ near Long Thanh International Airport and Phuoc An Port to take full advantage of future airport operations at a working session with Construction Minister Tran Hong Minh in late March.

The proposal, which was submitted to the Prime Minister in February, is expected to stimulate economic growth, attract foreign investment, and further cement Long Thanh as a regional trade and services hub. The project is seen as a key driver to help the province achieve double-digit GDP growth from 2025.

Meanwhile, the government of the central coastal city of Danang and Vingroup recently signed a memorandum of understanding on green transformation and sustainable development for 2025-2030. The agreement includes plans to study mechanisms for developing a free trade zone and a financial center.

The Prime Minister's directive also emphasized that Vietnam faces mounting challenges due to global uncertainties and intensifying strategic competition among major economies.

To achieve growth of 8% or more, the government will prioritize macroeconomic stability, inflation control, and the balance of key economic indicators. It also stressed the importance of closely monitoring global developments and responding quickly and effectively, especially to the new US tariff policies.

Banks are urged to cut costs and strive to lower lending rates, with credit channeled to production, priority sectors and growth-driving industries.

The directive also underscored the need to accelerate the disbursement of public investment, implement the revised Energy Development Plan VIII, streamline administrative procedures, and introduce special policies to support the construction of the Ninh Thuan Nuclear Power Plant Project.

Vietnam will also build an effective mechanism to attract selective, high-tech, and environmentally responsible foreign direct investment projects. A national one-stop investment portal will be launched in May, followed by provincial-level portals after administrative restructuring is completed.

The Prime Minister called for increased trade promotion and effective use of Vietnam's 17 signed free trade agreements (FTAs). He also urged the rapid conclusion or initiation of FTA talks with emerging economies in the Middle East, Africa, Latin America, Central Asia, Eastern Europe, India, Brazil, Pakistan, and Egypt.