Generous incentives strengthen Da Nang Free Trade Zone appeal
DNO - Vietnam’s National Assembly Resolution No. 259/2025/QH15 introduces a comprehensive package of incentives aimed at boosting the attractiveness of the Da Nang Free Trade Zone (FTZ) and helping channel international capital into the city.
Outstanding incentives
Under the resolution, newly licensed projects in priority sectors , including high technology, research and development (R&D), supporting industries, clean-energy vehicles, aviation and railway equipment, and logistics centers, are entitled to a preferential corporate income tax rate of 10% for up to 30 years.
These projects will also enjoy a four-year tax exemption, followed by a 50% tax reduction for the subsequent nine years, a significant advantage compared with Vietnam’s standard corporate tax rate of 20%.
Other newly established projects within the FTZ are eligible for a 10% corporate income tax rate for 15 years, alongside the same exemption and reduction schedule.
Goods and services traded among functional zones within the FTZ, or between the FTZ and foreign markets, will be subject to policies applicable to non-tariff zones, provided relevant conditions are met.
Transactions between FTZ functional zones and domestic areas outside the FTZ will follow Vietnam’s existing customs and import-export regulations.
The resolution also allows transshipment and temporary import - re-export goods to be stored in the FTZ for up to 90 days, with a maximum of two extensions of no more than 60 days each, offering greater operational flexibility for international logistics activities.
Foreign investors are permitted to hold up to 49% of charter capital in enterprises operating in airport-related services, including cargo terminal operations, aviation fuel supply, ground technical services and in-flight catering.
For international transshipment logistics centers at airports, foreign ownership may reach 51%.
To attract high-quality human resources, the resolution provides a 50% personal income tax reduction for up to 10 years for experts, scientists, highly skilled workers and senior managers working within the FTZ. Projects in FTZ functional zones will also enjoy incentives equivalent to those applied in economic zones under existing laws.
Expectations rise for strong investor interest
The FTZ has drawn growing interest from both domestic and international investors, reflecting the appeal of Vietnam’s first free trade zone model.
Investors from Japan, South Korea, Singapore, the United States and China have conducted surveys and working visits to explore opportunities across infrastructure, logistics, data centers and advanced manufacturing.
Japan’s Sumitomo has worked directly with city authorities, while South Korean firms, notably Hyundai E&C, have proposed studies covering key projects such as FTZ infrastructure development, a financial center and data centers.
KOGI Group has shown interest in large-scale materials technology investments, including refinery and oil storage facilities positioned to be among the largest in Southeast Asia, alongside an industrial complex producing hydrogen-based engine components to reduce emissions.
From Singapore, Bitdeer has explored data centers and high-value cargo storage, while Soilbuild and ST Telemedia have surveyed infrastructure and data center models.
Chinese investors, including the Shandong Enterprise Group Overseas Development Promotion Association, Topgene Biotechnology and Capstone Investment, are focusing on industrial infrastructure aimed at attracting pharmaceutical manufacturers.
Meanwhile, U.S.-based CT-Strategies and Switzerland’s VinaLog Holding AG have proposed advisory, logistics and infrastructure projects.
To ensure quality investment, projects worth at least VND 3 trillion require investors to commit a minimum 20% equity stake, while FTZ projects benefit from full land and water surface rent exemptions throughout the lease period, excluding residential and commercial-service developments.