Ho Chi Minh City established a free trade zone and expanded many subdivisions

The content was approved by the City People’s Council at the thematic session on the afternoon of December 26 in the Resolution stipulating the order and procedures for establishing, expanding and adjusting the boundaries of the Ho Chi Minh City Free Trade Zone. This is a step to concretize Resolution 260 (amending Resolution 98 on piloting specific mechanisms) of the National Assembly, allowing Ho Chi Minh City to pilot specific mechanisms and policies to attract investment, develop trade, logistics and high-quality services.

Accordingly, the city will deploy the free trade zone according to the model of “one zone with many subdivisions”, instead of establishing many independent zones. In the first phase, Ho Chi Minh City only established a single free trade zone in the Cai Mep Ha area, with a scale of about 3,800 hectares. This area is determined to be the core area, required to be associated with a deep-water seaport, in order to promote the advantages of the Cai Mep – Thi Vai port cluster on the international maritime route Asia – Europe and Asia – America.

From the Cai Mep Ha core area, Ho Chi Minh City will expand functional subdivisions in areas with specific advantages in logistics, seaports and traffic connections. The areas of Can Gio, An Binh and Bau Bang were not established as separate free trade zones, but were determined as expanded subdivisions through procedures to adjust the boundaries of established zones.

According to the Resolution, the expansion of free trade zones is not limited to geographically adjacent areas. The city is allowed to expand into non-adjacent areas, as long as these subdivisions have the ability to connect technical and logistics infrastructure and use the same management system with the Cai Mep Ha core area. This approach is to ensure unified management, avoid institutional fragmentation, and maximize the advantages of each area.

In particular, An Binh subdivision in the old Binh Duong area with a scale of about 100 hectares, is planned to be associated with the dry port system and existing logistics centers. This area is located near major traffic routes and inter-regional transport hubs, convenient for transshipment of goods by road and rail. An Binh is identified as a satellite logistics subzone, supporting goods consolidation, distribution and direct connection to the Cai Mep Ha core area.

Similarly, the Bau Bang subdivision is also located in the old Binh Duong with an area of ​​about 100 hectares and has a special advantage in railway connection. This area is associated with the Ho Chi Minh City – Loc Ninh railway line, connecting the Cai Mep – Thi Vai deep-water port cluster with the inland area and the trans-Asia economic corridor. When becoming a subdivision of the free trade zone, Bau Bang is expected to play the role of transshipment of goods from the Central Highlands, Cambodia and northern localities into the international seaport system.

Can Gio subdivision is oriented to be associated with the international transshipment port project, with an expected scale of 1,000 to 2,000 hectares. This area is strategically located at the maritime gateway, convenient for developing container transshipment, international logistics services and commercial activities associated with the marine economy. When included in the free trade zone, Can Gio will act as a “transshipment gateway”, adding functions that the Cai Mep Ha core area is difficult to undertake due to limited space for developing large-scale transshipment ports.

The choice of the “one zone – many subdivisions” model comes from limitations in authority and the need for flexibility in implementation. According to Resolution 260, Ho Chi Minh City can only decide to establish a free trade zone associated with Cai Mep Ha. Therefore, to bring other areas into the system, the city is forced to use the expansion mechanism, instead of establishing new independent zones.

As a general rule, expanding a functional area is usually only carried out when the established area reaches an occupancy rate of about 70%. However, the resolution allows Ho Chi Minh City to expand to subdivisions such as Can Gio, An Binh, Bau Bang even if the Cai Mep Ha core area has not reached this rate, if the expansion serves national goals or urgent requirements for integration and attracting strategic investment.

Regarding policy orientation, the free trade zone is designed to operate according to the non-tariff zone model, applying specific customs and management mechanisms, facilitating international trade. The subdivisions, even though they are not adjacent, still apply the same policy framework and are managed by the same focal point, ensuring unity and smoothness.

Ho Chi Minh City hopes that the formation of a free trade zone with many subdivisions will create a new growth engine, promoting the advantages of seaports, logistics and regional connectivity. This model is considered an important foundation for the city to enhance its position in the global supply chain, while strengthening its role as the economic leader of the Southeast region in the coming period.