Airports Corporation of Vietnam (ACV) has submitted a proposal to the Ministry of Finance and the Ministry of Construction outlining plans for an integrated air logistics center and duty-free zone at Long Thanh International Airport.
The proposed 136-hectare complex would be located southwest of the airport, within the 5,000 hectares designated and cleared for air logistics purposes since 2011. The center would have two main components: physical infrastructure and logistics facilities, and a duty-free zone with special tax and customs regulations.
ACV believes this center is key to Long Thanh airport becoming a major cargo transit hub for the ASEAN region. According to ACV, it would be Vietnam's only air logistics center directly connected to a duty-free zone and the Long Thanh airfield.
ACV estimates that once fully operational, the Long Thanh logistics center could contribute about 0.7% to the Southeast region's GDP and 1-2% to the country's total annual exports. It could also increase the value of air imports and exports by 15-20% annually and create 15,000 jobs.
ACV proposes to be the project investor, developing the infrastructure and establishing appropriate regulations and policies for approval by the relevant authorities. Airlines and businesses across various sectors are also encouraged to participate and co-invest.
The model of integrating logistics centers with duty-free zones has proven successful in several countries. Singapore's Changi Airport, for example, has had a free trade zone integrated with its logistics center since 1981. This model, which exempts import duties and VAT on stored, transit, or re-exported goods, has helped Changi become one of the world’s top 10 cargo airports.
In South Korea, Incheon Airport also has a free trade zone directly connected to the airport and a deep-water seaport, making it a leading air logistics hub in Asia.
Long Thanh International Airport, a key national project spanning 5,000 hectares, has a total investment of nearly 337,000 billion VND. The first runway and taxiway system are complete. The passenger terminal's roof and glass installation were substantially completed in September; the air traffic control tower and other operational buildings are also in the final stages of construction.
Currently, the construction site employs nearly 14,000 engineers and workers, utilizes about 3,000 pieces of equipment, and operates hundreds of construction points, striving for substantial project completion by the end of 2025.
Anh Tu
