Transforming Hainan Special Economic Zone into Free Trade Zone: A Comparative Study of China’s Approach and Implication for Vietnam

Abstract

: Hainan Island became a special economic zone in 1988. In 2018, China planned to develop Hainan into a pilot free trade zone, gradually exploring and steadily advancing the construction of a free trade port, and establishing a policy and institutional system for free trade ports in stages (Trang Tran, 2018). It is evident that the upgrading of the Hainan Special Economic Zone reflects China’s significant decision to expand outward and actively promote economic globalization. China’s experience in transforming special economic zones into free trade zones holds great significance for Vietnam in the new stage of economic development. Special economic zones are expected to have modern and well-integrated infrastructure, strong connections with domestic and international markets, foster a favorable and transparent business environment, and ensure accountability of local governments. In locations such as Vân Đồn, Vân Phong, and Phú Quốc, which possess potential for socioeconomic growth, Vietnam should study these development experiences and skillfully, innovatively, and effectively apply them.