Insights from the Free Trade Model in the World’s Most Developed Cities
Free Trade Zone: A Driver of Economic Growth
Simply put, a Free Trade Zone (FTZ) can be seen as an “economic oasis” within a nation’s territory. Here, goods can be imported, manufactured, assembled, and re-exported under preferential tax regimes and streamlined procedures. This unique mechanism has made FTZs a powerful “magnet” for international capital, unlocking opportunities for economic, social, and urban breakthroughs.
Shenzhen’s story is a clear testament to this. In 1980, when the city first embraced free trade policies, its GDP stood at just USD 270 million. More than four decades later, by 2023, that figure had soared past USD 475 billion — a nearly 1,800-fold increase. From a small fishing village, Shenzhen has risen to become a global technology hub, home to leading corporations such as Huawei and Tencent, and has earned the title “Silicon Valley of Asia.”
Dubai phát triển thần tốc nhờ khu thương mại tự do Jebel Ali
Dubai is no less impressive. The Jebel Ali Free Trade Zone, established in 1985, initially had just 19 companies operating. Today, that number has grown to more than 11,000 businesses from 157 countries, employing more than 160,000 people. By 2024, the zone will contribute AED 713 billion in non-oil trade, accounting for 36% of Dubai’s GDP, demonstrating the remarkable power of the FTZ model in transforming an economy that was once dependent on oil.
Singapore is another special example, this country with few resources has taken advantage of its seaports to develop free trade zones, turning the island nation into the world's leading cargo transit gateway. Singapore's success lies not only in logistics, but also in building a transparent and stable business environment, bringing GDP per capita to over 80,000 USD - among the highest in the world.
The common point that is easily seen in all these FTZs is the synchronous investment in infrastructure, modern logistics and superior legal framework. Once operated, they create a strong trigger effect: rapid economic growth, more dynamic social life, escalating real estate values, and outstanding development of neighboring urban areas..
Da Nang: The first free trade zone in Vietnam
On June 16, 2025, the Prime Minister signed a decision to establish Vietnam's first free trade zone in Da Nang. This is considered a historic turning point, opening a completely new chapter of development for the city on the Han River.
Da Nang was chosen because it has three key factors. In terms of geographical advantages, the city owns Lien Chieu port - a deep-water seaport planned to receive ships up to 200,000 tons, playing the role of the most important gateway of the East-West economic corridor. In terms of timing, the trend of shifting global supply chains after the pandemic has been opening up great opportunities for high-tech and semiconductor industries... which are the strengths of Da Nang.
Perspective of the International Financial Center in Da Nang
The impact of the free trade zone is not only measured by economic indicators, but also clearly shown in the change in urban appearance. Lien Chieu - where Lien Chieu port is located - will become an international logistics center, concentrating smart warehouses, high-tech factories and modern transportation systems. This will be the destination of billions of dollars of FDI capital each year, while attracting from 50,000 to 70,000 workers, including a significant force of experts, engineers and managers from many countries.
This change will certainly bring about new demands for social infrastructure. High-quality housing, international offices, bilingual schools, modern hospitals, commercial centers and urban services will all develop simultaneously. Lien Chieu will transform from a traditional industrial park into a modern and vibrant international seaport city.
In that context, well-planned urban areas will become the focus of benefiting from the boom of free trade zones. The Lumia Da Nang is a typical example. Located on the extended Nguyen Tat Thanh axis, the project only takes a few minutes to connect directly to Lien Chieu port and the center of the free trade zone. With a planning area of nearly 70 hectares, The Lumia is developed according to a closed ecological urban model, possessing nearly 30 modern utilities to meet all needs from living, working to entertainment and commerce.
The Lumia Da Nang project is adjacent to the extended Nguyen Tat Thanh street, directly connecting Lien Chieu International Port, Free Trade Zone & City Center.
The big difference of The Lumia Da Nang lies in its dual investment value. This is not only an ideal place to live, but also an asset that can be flexibly exploited: for rent, opening offices, shops or tourist accommodation. In the future, when the wave of international experts flocking to Da Nang becomes stronger, the exploitation value of the project will increase, turning real estate here into a sustainable profit-making tool.
With strategic vision, investors who grasp the trend early will be the ones to reap the greatest rewards in the future. And The Lumia Da Nang, with its strategic location and modern planning, deserves to become the fulcrum accompanying the spectacular breakthrough of the most livable city in Vietnam in the next decade.
