Vietnam’s northern port city of Hai Phong is in the final stages of preparing for the launch of a next-generation free trade area, which will serve as the central feature of its newly approved southern coastal economic zone.
This modern trade area will span over 1,000 hectares within the broader 20,000-hectare economic zone, modeled after globally successful free trade hubs. Its goal is to attract major international corporations by offering an investor-friendly environment.
Scheduled for formal approval in early 2025, the southern coastal economic zone will allocate 3,000 hectares for seaport facilities, 4,000 hectares for industrial activities, and 1,800 hectares for residential and urban development.
The total investment in the development is projected to reach USD 8 billion by 2030, with expectations of drawing in around USD 40 billion in capital, generating over USD 70 billion in trade turnover, and creating 400,000 jobs. Additionally, the area aims to house 500,000 people by 2040, supporting urban growth and industrial expansion.
Strategically positioned as the northern gateway to the sea, Hai Phong lies within the economically vital Hanoi–Hai Phong–Quang Ninh growth triangle and plays a key role in the Kunming (China)–Lao Cai–Hanoi–Hai Phong–Quang Ninh economic corridor. The development of this zone is expected to boost regional connectivity, enhance Vietnam’s national competitiveness, and capitalize on Hai Phong’s advantageous location and robust transport network.
In tandem with this effort, Hai Phong is also fast-tracking the development of the Xuan Cau industrial and non-tariff zone, situated in the Lach Huyen international seaport area. Under construction since May 2023, the 752-hectare zone represents a USD 434 million investment and is intended to support industrial manufacturing and logistics/warehouse services, further positioning the city as a key player in regional trade and industry.
(Sources: The Investor)
