A ground-breaking ceremony for the second functional area of the Đà Nẵng Free Trade Zone (FTZ2), also known as Eagle FTZ. — Photo courtesy of Vĩnh Thông

ĐÀ NẴNG — Industrial park developer Sài Gòn-Đà Nẵng Investment Joint Stock Corporation (SDN) has started construction of the second functional area of the Đà Nẵng Free Trade Zone (FTZ2), also known as Eagle FTZ, on 75ha with an investment of VNĐ1.6 trillion (US$61.3 million). 

FTZ2 will be the first integrated complex of multi-vehicle logistics, high-tech industries manufacturing and supportive industries connected with the Liên Chiểu deep-sea port.

The zone will be reserved for high profile foreign and domestic investments in sectors including logistics, warehousing, container transshipment, semiconductor and chip manufacturing, transport equipment, aerospace, advanced electronics, wind turbines, EV batteries, biotechnology and supporting industries.

Vũ Quang Hùng, head of Đà Nẵng's Special Economic Zone Authority, said FTZ2 is the first infrastructure project in the Đà Nẵng FTZ to complete required construction-related procedures.

He said the project marks the first step in making Việt Nam’s first FTZ model a reality.

Excavators begin working at the Đà Nẵng Free Trade Zone's second area in Đà Nẵng City. — VNS Photo Công Thành

SDN General Director Mai Công Hồ said the FTZ2 will be introduced as an open economic ecology system with global connections.

“The site has been designed to international standards, offering a supportive mechanism for investors in terms of logistics, warehouse, procedure and value-added services. It will be developed for green growth, smart and digital transformation in line with global sustainable development and ESG standards,” Hồ said at the ground-breaking ceremony.

“FTZ2, at the centre of a series of key logistics infrastructure projects for road, railway, sea and air routes, will trigger the construction and operation of the first model FTZ in Việt Nam,” he added.

SDN, which started investing in Đà Nẵng in 2005, had previously signed a memorandum of understanding with Singapore's YCH Group Pte on developing the FTZ2.

Yap Kong Wing, CEO of Vietnam Super Port, a multimodal logistics hub under YCH Group and the local T&T Group, said: “Đà Nẵng is a gateway to the world for ships, for ports, for people and businesses to come in. It is situated at the mouth of the East-West Economic Corridor, linking Việt Nam to Laos, Thailand, Myanmar and all the way to the wider ASEAN market."

“The FTZ2 in Đà Nẵng is the start,” he added. “Real travel, real operations, real businesses will happen, and we’ll test it with digital trade.”

Infrastructure items are completed in the construction of the deep-sea Liên Chiểu Port in Đà Nẵng City. — Photo courtesy of Giao Liên

The Đà Nẵng Special Economic Zone Authority reported that Phương Trang Group and Thanh Bình Phú Mỹ Joint Stock Company have been granted investment licences to develop the zone's third and fourth functional areas (FTZ3 and FTZ4).

Last year, local property developer Sun Group started construction of the fifth functional area (FTZ5) on 90ha with an investment of $32 million.

The 1,881ha Đà Nẵng FTZ will comprise seven functional areas in total, dedicated to manufacturing, logistics, trade and services, digital technology, information technology and innovation. It is currently calling for investment in three other functional areas: FTZ1, FTZ6 and FTZ7. — BIZHUB/VNS