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Abstract
Free Trade Zone (FTZ) is still a relatively new concept in Vietnam. Under governmental approval, Da Nang is going to establish a Free Trade Zone which is associated with Lien Chieu Port and consists of production, trade-service and logistics areas. It is hoped that the new FTZ will act as a driving force that stimulates various areas of development of the city including the local logistics industry. However, since this is the first pilot mechanism ever introduced in Vietnam and there is quite little research as well as data found in this field, it is not completely sure how Da Nang logistics industry will be shaped under the presence of the new FTZ given the specific location and socio-economic context of Da Nang. Therefore, this paper will attempt to partly bridge this knowledge gap by discussing the current logistics situation of Da Nang and review existing studies to provide an evaluation of the effects of the soon-to-be established Da Nang Free Trade Zone on local logistics development. In fact, the findings of this study suggest that the zone could improve local logistics costs and infrastructure, increase the share of modern and green logistics services and attract more logistics labour and specialised logistics service providers. However, the actual degree and direction of those impacts will largely depend on governmental policies and support.