Hai Phong Free Trade Zone: Opportunities and Incentives for Investors

1. Overview of Hai Phong Free Trade Zone and Outstanding Transport Advantages

The Hai Phong Free Trade Zone is planned with a total area of up to 6,292 hectares, oriented to develop into a leading production, trade, logistics, and innovation hub. Among them, prominent locations include an area of about 2,923 hectares situated within the Southern Coastal Economic Zone of Hai Phong (in Chan Hung and Hung Thang communes).

In particular, the project unlocks tremendous breakthrough opportunities for investors thanks to its synchronized multi-modal transport infrastructure network connecting sea, air, road, and rail:

• Nam Do Son Port: Planned as a modern deep-water port, a green, smart, and duty-free port, serving as an important international maritime transport and logistics hub. The port allows goods to circulate and transit extremely quickly, minimizing transportation costs to the maximum.
• Inter-regional Transport Infrastructure: The Hanoi - Hai Phong expressway, coastal expressway, national railway network create a smooth transportation corridor. As a result, businesses investing here can easily access raw materials while optimizing delivery times to global markets

2. Priority Sectors for Investment

The Hai Phong Free Trade Zone focuses on attracting high-tech fields with widespread spillover effects, high value-added, and environmental friendliness, including:

• High-Tech and Strategic Sectors: Semiconductor industry, electronic microchips, information technology, new materials, biotechnology, and renewable energy.
• Automation and High-Tech Supporting Industries: Manufacturing of high-tech components, spare parts, and precision engineering.
• Global Production, Logistics, and Distribution Centers.
• Research and Development (R&D) Centers Staying Ahead of New Technology Trends: Building innovation centers, technology incubators, and training high-quality human resources.
• Trade and Finance: International financial center, cross-border e-commerce, and commodity exchange."

3. Superior Incentive Mechanisms for Investors

Compared to traditional economic zones (EZs) and industrial parks (IPs), the Hai Phong Free Trade Zone possesses exceptionally attractive special incentive mechanisms:

• Corporate Income Tax (CIT): Preferential tax rate of 10% for 30 years; tax exemption for 4 years and a 50% reduction for the next 9 years.
• Land Rental: 100% exemption for the entire term (excluding commercial and service land areas).
• Import and Export Duties: Operating as a tariff-free zone, import duties are exempted for manufactured goods.
• Personal Income Tax (PIT): A 50% reduction for experts, scientists, and high-quality human resources.
• R&D Support: Expenses for Research and Development (R&D) activities are deductible up to 200% when calculating CIT.
• Customs and Foreign Exchange Procedures: Application of the highest priority regime, exemption from specialized inspections; alongside permission to list and settle transactions in foreign currencies right within the zone.

The perfect combination of strategic deep-water port and transport infrastructure planning, large-scale development, and breakthrough incentive policies makes the Hai Phong Free Trade Zone an investment environment with highly competitive costs and top operational efficiency in Vietnam. This is truly the "destination of success in the new century", opening up golden opportunities for investors to optimize their supply chains and reach out to the world