Decision 1142/QD-TTg of 13 June 2025 establishes the Da Nang Free Trade Zone — Vietnam first free trade zone — at a scale of 1,881 hectares arranged in 7 non-contiguous locations, attached to Lien Chieu seaport and Da Nang international airport. This article presents the functional zone structure under the establishment decision, the priority sectors for investment attraction, and how a manufacturing, logistics or trading enterprise matches its needs to each sub-zone.
Governing Instruments
- Decision 1142/QD-TTg of 13 June 2025 of the Prime Minister establishing the Da Nang Free Trade Zone: a scale of 1,881 hectares, arranged in 7 non-contiguous locations across Da Nang city, operating under a free trade zone model attached to Lien Chieu seaport.
- The functional zone structure of the Da Nang Free Trade Zone under Decision 1142/QD-TTg: a production zone; a logistics zone; a trade and services zone; a digital technology industrial zone; an innovation zone and other functional zones per planning — each functional zone oriented to its own sector groups and activity types.
- The policy basis of the Da Nang Free Trade Zone: Resolution 136/2024/QH15 of the National Assembly on urban government organisation and piloting special mechanisms and policies for Da Nang city development (amended by Resolution 259/2025/QH15) — the decentralisation framework and special mechanisms for the city, including the free trade zone model.
- Investment attraction orientation of the Da Nang Free Trade Zone: priority for sectors attached to seaport and logistics advantages (port services, international logistics, export production), high-tech and digital industries, international trade and services, and innovation — under the goal of making Da Nang a logistics and trade hub of Central Vietnam.
- Management relations: the Da Nang Free Trade Zone is managed under a special functional-zone mechanism with a unified city management focal point, and goods moving in and out operate under a non-tariff zone customs model — detailed in the investment procedure and customs articles of this series.
The structure of the Da Nang Free Trade Zone under Decision 1142/QD-TTg has two features to grasp before choosing a location. First, the 1,881-hectare scale is not in one continuous boundary but arranged in 7 non-contiguous locations — a “one zone, many sites” model attaching each location to existing strategic infrastructure: the Lien Chieu seaport area for logistics and export production, and areas near the airport and city centre for trade, services and digital technology. Second, within that whole, the establishment decision defines the functional zones: production zone; logistics zone; trade and services zone; digital technology industrial zone; innovation zone and other functional zones. An investor matches by activity: processing and manufacturing in export chains belongs to the production zone group; warehousing, distribution and port services to the logistics zone; trading centres, financial services and international offices to the trade and services zone; digital production and services to the digital technology industrial zone; and research and development centres to the innovation zone.
Counsel’s Assessment
The priority sectors for investment attraction into the free trade zone are oriented by Da Nang underlying advantages and the model goals: international logistics and seaport services; high-tech manufacturing and export production; digital technology and the semiconductor and electronics industries in the regional value chain; international trade, distribution and trade support services; and innovation and research and development. A point to note is that “priority” in the free trade zone attaches to the zone operating model (non-tariff zone customs, a one-stop procedure focal point, and Da Nang special policies under Resolution 136/2024/QH15) rather than standing apart as a separate tax incentive list: the biggest advantage of a project in the zone is its goods and procedure operating model, plus the city special policies under the National Assembly resolution.
Choosing a sub-zone should start from the project own goods and service flows. An export manufacturer needs a position in the production zone at the Lien Chieu port-attached sites to optimise freight costs to the port and fully enjoy the non-tariff customs model for imported materials. A logistics enterprise chooses the logistics zone with warehousing area, yards and direct port system connection requirements. A trading, services enterprise and regional headquarters choose the trade and services zone near the centre and airport, where value lies in connectivity and workforce rather than the customs fence. A digital technology enterprise matches the digital technology industrial zone, where digital infrastructure and technology workforce attraction policies are the deciding factors. Choosing the wrong sub-zone does not strip the project of free trade zone status, but removes most of the operational advantage the model was designed to deliver.
On the roadmap: Decision 1142/QD-TTg establishing the zone is the legal starting step — investor intake into each location proceeds by the progress of infrastructure completion, detailed planning of each functional zone, and the issuance of operating regulations by the city and the zone management authority. An interested investor should follow the Da Nang Free Trade Zone management focal point announcements for each intake round by location and functional zone, while preparing the project file toward proving conformity with the target sub-zone sector orientation. This is also why the following articles of this series separate two contents: how investment procedures differ from an ordinary economic zone, and the customs relations of goods moving in and out of the zone — the two points an actual investment decision must settle before signing a location commitment.
Proposed Roadmap
- Match the project activity to the 5 functional zone groups under Decision 1142/QD-TTg (production; logistics; trade and services; digital technology; innovation) before choosing a location among the zone 7 sites.
- Assess the FTZ advantage by its operating model (non-tariff customs, one focal point, Resolution 136/2024 mechanisms) rather than by tax incentives alone.
- Choose the sub-zone by the project goods and service flows: manufacturing and logistics attached to Lien Chieu port; trade and headquarters near the centre and airport.
- Follow investor intake announcements by location and functional zone of the Da Nang FTZ management focal point and prepare a file proving conformity with the sub-zone sector orientation.
Frequently Asked Questions
Which functional zones does the Da Nang Free Trade Zone comprise, and which sectors are prioritised for investment attraction?
Under Decision 1142/QD-TTg of 13 June 2025, the Da Nang Free Trade Zone has a scale of 1,881 hectares in 7 non-contiguous locations, comprising the functional zones: production zone; logistics zone; trade and services zone; digital technology industrial zone; innovation zone and other functional zones. The priority orientation for investment attraction includes logistics and seaport services, high-tech manufacturing and export production, digital technology, international trade and support services, and innovation — following the Lien Chieu seaport advantage and the goal of a logistics and trade hub for Central Vietnam.
Which sub-zone should a manufacturing, logistics or trading enterprise choose in the Da Nang FTZ?
Choose by the project goods and service flows: an export manufacturer chooses the production zone at locations attached to Lien Chieu port to optimise freight and the non-tariff customs model for imported materials; a logistics enterprise chooses the logistics zone with warehousing and port connection; a trading, services enterprise and regional headquarters choose the trade and services zone near the centre and airport; a technology enterprise chooses the digital technology industrial zone. Choosing the right sub-zone decides most of the actual operational advantage of a project in the free trade zone.
How does the Da Nang FTZ management mechanism under Resolution 136/2024 differ from existing economic zones and industrial parks?
The core difference lies in the model: the free trade zone operates under a non-tariff zone model for customs relations of goods moving in and out (covered in the customs article of this series), with a unified management focal point and the special mechanisms Resolution 136/2024/QH15 (amended by Resolution 259/2025/QH15) gives Da Nang, including stronger decentralisation to the city in zone management. Existing economic zones and industrial parks operate under the ordinary investment, land and customs legal framework, with a tariff fence applying only to certain special zone models (export processing zones, bonded warehouses) rather than an overall free trade model like the Da Nang FTZ.
What is the implementation roadmap, and when does the Da Nang FTZ start receiving investors?
Decision 1142/QD-TTg of 13 June 2025 is the legal establishment step of the zone; investor intake proceeds by the progress of infrastructure completion and detailed planning of each of the 7 locations and each functional zone, together with operating regulations issued by the city and the zone management authority. An investor follows the intake announcements by round of the Da Nang Free Trade Zone management focal point and prepares the project file proving conformity with the target sub-zone sector orientation from this stage, rather than waiting for a single opening moment for the whole zone.
This article has been quality-reviewed by the FLAW AI Legal Council