Prime Minister Pham Minh Chinh on December 5 chaired a government meeting to review and provide guidance on the national proposal for establishing free trade zones, a move seen as critical for shaping Vietnam’s next wave of economic reform.

The proposal, developed by the Ministry of Finance, outlines legal, political, and practical foundations for the initiative. Discussions focused on development goals, establishment criteria, operating models, legal frameworks, incentive policies, and management structures unique to free trade zones.

Globally, more than 7,000 special economic and free trade zones are in operation. They play an increasingly vital role in economic development strategies, especially in emerging and developing nations.

Today, the free trade zone model has expanded to become multi-functional ecosystems incorporating industry, urban living, services, finance, hi-tech, and innovation hubs - all designed to mobilize maximum resources for growth.

Vietnam’s legal gap and the need for a new economic engine

Currently, Vietnamese law lacks specific regulations for managing and operating free trade zones. While the National Assembly has issued resolutions piloting some special mechanisms for the development of Da Nang and Hai Phong, a fully articulated legal framework for free trade zones is still missing.

Therefore, building a concrete proposal is now seen as urgent and essential. According to the Ministry of Finance, it aims to serve as both a political mandate and a foundation to formalize and standardize national legal policies on free trade zones.

Ultimately, these zones will become experimental grounds for policy innovation and catalysts for growth - modern economic spaces governed by international standards.

Roadmap to 2045: Vietnam’s vision for free trade zones

The Ministry of Finance projects that by 2026, the first free trade zones will be launched in Da Nang, Hai Phong, and Ho Chi Minh City. By 2030, Vietnam could have 6–8 zones or similar models in strategically advantageous provinces. By 2045, the goal is to establish 8–10 internationally competitive free trade zones contributing 15–20% of national GDP.

Concluding the session, Prime Minister Pham Minh Chinh emphasized that although the concept is new to Vietnam, the approach must be feasible and yield tangible results.

He stressed that the primary goal is to test new policies that serve both short-term needs and long-term national strategies - including the two centennial development goals.

The Prime Minister called for a clear definition of what constitutes a free trade zone, especially how it differs from an international commercial center. He urged policymakers to creatively and flexibly apply existing regulations while crafting new, targeted mechanisms for each type of zone.

Site selection for pilot zones must be regionally balanced and time-bound to allow for performance evaluation, he added.

International lessons, local relevance

PM Chinh directed government bodies to consult international best practices but adapt them to Vietnam’s unique conditions. He urged the creation of tailored, breakthrough, and competitive policies that would not destabilize the broader investment environment.

The policies must combine universal guidelines with local-specific provisions, applicable across regions with varying strengths.

He also outlined a detailed roadmap: turning the political commitment into action plans, zoning regulations, infrastructure development, resource attraction, hi-tech applications, smart governance, and workforce training. All while ensuring social welfare, environmental sustainability, and cultural modernity in the pilot areas.

On the same day, the Prime Minister also chaired a separate session discussing policy proposals to develop a national oil refining and energy center at the Dung Quat Economic Zone in Quang Ngai.

Tran Thuong