Dong Nai province has unveiled a proposal to develop a Free Trade Zone (FTZ) with a total investment of approximately USD 16 billion, which would include an international gold trading center modeled after similar hubs in Singapore and Hong Kong.

In a draft submitted by the provincial Department of Finance, Dong Nai seeks approval from the National Assembly, the Government, and the Prime Minister to establish mechanisms and policies to support the project. One key feature is the proposed international gold trading center, which would operate under special regulations akin to those of Ho Chi Minh City’s International Financial Center.

The objective is to liberalize capital flows and foreign exchange transactions within the FTZ, streamlining payments, currency conversions, and cross-border capital movement for businesses and investors.

The gold exchange aims to serve as a regional hub, designed to international standards and inspired by Singapore and Hong Kong’s financial models. Dong Nai has requested guidance from the Ministry of Finance and the State Bank of Vietnam on legal and regulatory frameworks for its establishment.

Covering more than 8,100 hectares, the Dong Nai FTZ will be divided into specialized zones: 3,095ha for manufacturing, 1,987ha for logistics, 1,500ha for financial and commercial services, and 1,419ha for research, innovation, and information technology.

Phase 1 will span 3,700 hectares and cost around USD 9.21 billion over five years. Phase 2, to be launched two years after Phase 1 begins operations, will expand the zone to its full size, requiring a further USD 6.79 billion.

The project’s funding will consist of 5% public investment (USD 0.8 billion), 40% domestic private capital (USD 6.4 billion), and 55% foreign direct investment (USD 8.8 billion).

According to the Department of Finance, Long Thanh International Airport and Phuoc An Port will be instrumental in boosting the FTZ’s investment appeal.

Once operational, Long Thanh Airport is projected to handle 100 million passengers and 5 million tons of cargo annually, supporting logistics, international trade, and high-value manufacturing. Phuoc An Port, with a processing capacity of 5 million TEUs, is set to meet the growing import-export demands of Dong Nai and the Southeast region.

Dong Nai also proposed that banks and financial institutions in the FTZ be allowed to set lending and deposit interest rates independently, aligned with market orientation and international norms - exclusively for companies headquartered within the zone.

Additionally, businesses operating in the FTZ would be permitted to list, quote, value, contract, and settle payments in foreign currencies. Foreign banks would also be allowed to establish transaction offices in the area.

Gold remains a prominent investment channel amid global economic and geopolitical uncertainty. According to Trading Economics, 50% of gold is used in jewelry, 40% in investments, and 10% in industry. The World Gold Council identifies Shanghai, London, and COMEX (U.S.) as the top three global gold trading centers, accounting for over 90% of global gold transactions.

Tran Chung