Hai Phong Free Trade Zone: Implementation, Incentives and Opportunities

Hai Phong Free Trade Zone (FTZ), officially established on October 16, 2025, is poised to be a vital growth engine for Vietnam’s economy, focusing on high-value, innovation-driven industries.

On October 16, 2025, Hai Phong City issued Decision 4068/QD-UBND, officially approving the establishment of an FTZ covering approximately 6,292 hectares, distributed across three key locations within its coastal economic zones.

Following the establishment of Da Nang FTZ in June, Hai Phong FTZ is expected to become a new growth driver for Vietnam’s economy, propelled by its strengths in manufacturing, port and logistics operations, and commercial services.

Development layout and zoning

The Hai Phong FTZ will be anchored in 3 areas associated with the Dinh Vu – Cat Hai Economic Zone and the Southern Hai Phong Coastal Economic Zone:

• Zone 1, spanning around 2,923 hectares, is located within the Southern Hai Phong Coastal Economic Zone, covering the communes of Chan Hung and Hung Thang.
• Zone 2, encompassing 1,077 hectares, lies in the Dinh Vu – Cat Hai economic zone, in Dong Hai Ward.
• Zone 3, comprising more than 2,290 hectares, is positioned within the Cat Hai subzone of the Dinh Vu – Cat Hai economic complex.

Two-phase implementation plan

Development will proceed in two main phases:

• Phase 1 (2025–2030) will focus on establishing the legal, administrative, and infrastructural framework for the FTZ. Pilot policies and special mechanisms will be tested within the Dinh Vu – Cat Hai area, particularly in customs, investment licensing, and non-tariff procedures. The Hai Phong Economic Zone Authority (HEZA) will oversee the creation of streamlined governance, logistics systems, and digital management tools to support future operations.
• Phase 2 (2030–2035) will complete core infrastructure and integrate the FTZ into Hai Phong’s industrial and logistics ecosystem. Policy emphasis will shift toward high-value, green, and bio-based manufacturing, alongside R&D-driven investment. Advanced digital systems will be applied to optimize port and logistics efficiency, enhancing overall competitiveness.

*Notes for investors: The 2025 – 2030 period will serve as a pilot and foundation stage, while full-scale commercial operations and stable incentive regimes are expected after 2030.

Hai Phong FTZ: Vietnam’s new growth hub for High-value investment

The Hai Phong FTZ is envisioned as a new engine of growth, directly contributing to the implementation of the Politburo’s Resolution No. 45 on the city’s development through 2030, with a vision toward 2045. The zone will include dedicated areas for manufacturing, port and logistics operations, and commercial services.

Its governance structure, policy framework, and operational model will be guided by the National Assembly’s Resolution No. 226/2025/QH15 (“Resolution 226”), which introduces specific mechanisms to accelerate Hai Phong’s development.

Under Resolution 226, the Hai Phong FTZ stands as a pioneering model in Vietnam’s new generation of economic zones, designed to anchor the nation’s transition toward high-value, innovation-driven growth.

Strategically positioned to drive Vietnam’s transformation into a global trade, logistics, and technology hub, the FTZ will serve as a pilot area for breakthrough policies that attract investment in advanced manufacturing, logistics, finance, and premium services.

According to Article 7 of Resolution 226, industries based on high technology and innovation are eligible for a comprehensive set of fiscal and institutional incentives, designed not only to attract high-tech investment but also to foster innovation and experimentation through controlled testing (“sandbox”) mechanisms:

• Long-term incentives for high-tech investment projects:
  • Preferential corporate income tax (CIT) rate of 10 percent for 20 years; and
  • Full tax exemption for four years, followed by a 50 percent CIT reduction for the next nine years.
• Incentives for innovative start-ups, innovation, semiconductors, and artificial intelligence (AI) within Hai Phong City:
  • CIT exemption for five years from the time taxable income arises, applicable to income from innovative start-up activities;
  • Exemption from personal income tax (PIT) and CIT for individuals and organizations earning income from the transfer of capital contributions or capital rights in innovative start-ups and high-tech enterprises, valid for five years from the date of investment; and
  • PIT exemption for five years on income from salaries and wages earned by experts, scientists, and innovative start-up individuals.
• Introduction of the controlled testing mechanism (sandbox) for a new technological solution:
  • The maximum duration for controlled testing is three years, which may be extended once for no more than three additional years.

Key takeaways for investors

Consideration for business

The establishment of the Hai Phong FTZ represents a cornerstone in Vietnam’s next-generation economic development strategy. Anchored by Resolution 226, the FTZ is designed to accelerate industrial transformation, foster innovation, and strengthen the nation’s role in global trade and logistics.

With its strategic coastal location, proximity to Lach Huyen Seaport and Cat Bi International Airport, Hai Phong FTZ is poised to become a leading hub for advanced manufacturing, logistics, and sustainable investment in Northern Vietnam. As full-scale operations commence after 2030, the FTZ will not only enhance Hai Phong’s regional competitiveness but also contribute significantly to Vietnam’s long-term vision of becoming a center for high-value, innovation-led growth.