Ho Chi Minh City Maps Out Four Free Trade Zones to Become Southeast Asia's Leading International Trade Gateway

Strategic Insights -

Vietnam's Ho Chi Minh City is moving forward with plans to establish four free trade zones (FTZs) strategically linked to seaports, railways, and international border gates. This ambitious project aims to drive growth in the maritime economy, logistics, and urban development by capitalizing on the city's seaport infrastructure. The FTZs will position Ho Chi Minh City as one of Southeast Asia's leading international trade gateways by leveraging cutting-edge technologies and creating a smart port and logistics cluster.

Key Takeaways:

  • Four FTZs are being planned, with one near the Can Gio international transshipment port project and the Ganh Rai Bay area, covering 1,000-2,000 hectares.
  • The Cai Mep Ha FTZ, located near the Cai Mep-Thi Vai international port, will cover 3,700 hectares and feature three functional zones and eight subzones.
  • The Bau Bang FTZ, positioned along the corridor linking the Cai Mep-Thi Vai port and the Moc Bai international border gate, will cover 100 hectares and serve as a transshipment hub for goods from Vietnam's Central Highlands and Cambodia to seaports.
  • The An Binh FTZ, located near the Song Than inland container depot, will cover 100 hectares and handle both road and international rail transport.
  • A study on the FTZs has attracted interest and backing from domestic and foreign investors, including DP World, Vingroup, and Geleximco.
  • Hurdles to the project include incomplete legal frameworks for FTZs and the absence of dedicated policies, which have hampered efforts to craft special mechanisms.
  • The municipal Department of Industry and Trade has proposed adding special mechanisms for FTZs to the list of policies not yet covered in Resolution 98.

Statistics:

  • Ho Chi Minh City aims to develop a smart port and logistics cluster linking Cai Mep, Thi Vai, and Can Gio.
  • The new Ho Chi Minh City spans over 6,722 square kilometers and has a population of over 14 million.
  • The merger of HCMC, Binh Duong, and Ba Ria-Vung Tau provinces has created a closed-loop ecosystem of commerce, logistics, and manufacturing.
  • The total area of the planned FTZs is expected to be around 5,100-9,000 hectares.

Sources:

  • Ho Chi Minh City's Department of Industry and Trade
  • Resolution 98 on granting HCMC special mechanisms
  • June 12 National Assembly resolution reducing Vietnam's number of provinces and cities
  • June 12 National Assembly resolution merging HCMC with Binh Duong and Ba Ria-Vung Tau provinces