The Ministry of Trade, Industry and Energy announced on the 4th that the export amount from the free trade zone (FTZ) last year reached $14.9 billion, an increase of 22.5% compared to the previous year. FTZ refers to areas that guarantee free manufacturing and trade activities to expand exports and logistics and attract foreign investment. Benefits such as tariff exemption, zero-rate value-added tax, and rent reduction are provided. Currently, 13 locations are designated and operated domestically, including 7 industrial complexes, 5 ports, and 1 airport.
By type, the export scale was led by airport-type ($12.7 billion), industrial complex-type ($2.1 billion), and port-type ($87 million).
The airport-type saw a 29.3% increase in exports compared to the previous year as the development of artificial intelligence (AI) technology highlighted the importance of data processing capabilities, leading to a surge in demand for high-performance semiconductors and high-bandwidth memory (HBM) semiconductors.
The industrial complex type saw exports surpassing $2 billion for the second consecutive year as exports of related parts increased, driven by strong demand for automobiles and ships.
By item, semiconductors accounted for the largest share at 85.2%. It was followed by electrical and electronic precision instruments (automotive parts, mobile phone parts) at 6.4%, and petrochemicals (resins) at 1.9%.
By country, exports were recorded as follows: China (semiconductors, etc.) at 64.3%, Vietnam (mobile phone parts, etc.) at 8.8%, the United States (automotive parts, plastic raw materials, etc.) at 3.2%, and India (chemicals, etc.) at 2.2%.
An official from the Ministry noted, “This year, we expect FTZ exports to increase due to the continued rise in demand for AI semiconductors and the strong export of eco-friendly vehicles,” adding, “We will collaborate with relevant government departments and local governments to provide full support so that the free trade zone can achieve continued success as an export base.”