Hai Phong City Establishes Free Trade Zone, Bolstering Economic Hub Status

Hai Phong City, a major port city in northern Vietnam, has established a free trade zone following its merger with Hai Duong province, which is set to be completed in July 2025. This initiative is a strategic step to further solidify the city's status as one of the country's leading economic hubs. The merger will significantly expand Hai Phong's development space, enhancing direct connectivity between industrial and agricultural production regions and urban areas in the west with the seaport and logistics system in the east. This is expected to facilitate efficient import and export of domestic products and promote international trade. Hai Phong has been noted for its remarkable economic growth in recent years, including a substantial rise in cargo throughput at its ports. Over the past six months, port cargo throughput saw an 11% increase, highlighting the growing importance of its logistics infrastructure. The city is also actively exploring rural tourism potential through initiatives like promoting seasonal fruit tours. Under Vietnam's one-party system, local government economic development plans proceed with central government approval. The establishment of free trade zones is a key policy aimed at driving overall economic growth through attracting foreign investment and boosting exports. For Vietnam, which has strong economic ties with China, such trade promotion measures are crucial for diversifying supply chains and enhancing economic security.